There are many situations in which a trust is very effective. For example, property in a trust need not go through the cost and process of probate when you pass.
Probate is the process which permits property (such as land) owned by a deceased person to be passed on to a beneficiary. But probate in Idaho can’t address a condo or cabin located in another state. Those who own a home here, and a second home in Arizona, may want to put both properties into a trust and avoid paying two attorneys in two different states for probate.
Some people also favor the privacy that a trust can provide. When a Will is probated, the personal representative (also called the executor) must compile a list of the deceased person’s assets and file that document with the court, or at least file a notice that the inventory is available. Certain “interested parties” have a right to review the inventory, even if they won’t be receiving property.
On the other hand, the actual beneficiaries of a trust must be informed of the trust and their rights. But others do not have a right to be involved.
While these are good reasons to consider a trust, a properly drawn trust actually provides many more advantages. As I have described previously, a trust allows you to maintain a significant level of control over the use of your assets even after you become incapacitated or pass away. A will allows you only to state who receives your things after you pass away.
That flexibility and control can be a significant advantage depending on the risks to your estate and the complications that arise in each of our lives.
© 2017 Steven J Wright