A trust is a legal entity created to hold and manage assets. It is created for the benefit of its beneficiaries, which can include the person who establishes the trust. Revocable living trusts are often used as an alternative to a will in estate planning to avoid the probate process.
A trust can be used to not only protect you against potential hazards of unexpected crises, but it can also provide you with more flexibility and greater control over your estate, addressing concerns that you already may be aware of regarding the probate process, inheritance timing or beneficiary issues.
The primary reasons to consider a revocable trust include:
- Avoiding guardianship
- Avoiding probate
- Preserving assets
- Controlling inheritance timing
- Maintaining privacy
- Reducing estate taxes
- Providing for a special needs child