Trusts are amazing estate planning tools.
They can be used for tax planning, asset protection, Medicaid planning, business succession, and more (though each of those options has significant downsides).
When most people talk about trusts, however, they are referring to living trusts.
You might also hear this type of document referred to as a revocable living trust or a revocable trust or an inter vivos trust or a bunch of other names. They all generally mean the same thing.
Contrary to popular belief, trusts are NOT just for wealthy people.
In fact, because of its numerous advantages and its flexibility, the living trust has become one of the most popular — and, in my opinion, one of the best — estate planning tools available.
Here are 8 reasons why a living trust might be right for you:
1. A living trust can eliminate the need for probate.
Everyone wants to avoid probate, if possible.
It’s expensive, time consuming, difficult to navigate, and often stressful and contentious.
There is (unfortunately) a widespread belief that having a Last Will and Testament means your family won’t need to probate your estate. But a Will must be probated after your death to be effective!
In other words: If you want to avoid probate, a Will is not the way to go.