What benefit does a trust provide in estate planning?

A trust serves multiple purposes in estate planning, but one of its most significant advantages is the avoidance of probate. When an individual passes away, their assets typically go through the probate process, which is a court-supervised procedure for distributing the decedent's estate. This process can be lengthy, complicated, and costly, causing delays and sometimes adding to the emotional burden on the heirs.

By placing assets into a trust, those assets can be transferred to beneficiaries without undergoing probate. This allows for a more seamless and efficient distribution, as the trust's provisions dictate how and when assets should be distributed, bypassing the court system altogether. This can also help to maintain privacy regarding the deceased's assets, as probate records are generally public.

Although trusts can have implications for taxes or access to funds depending on the type of trust established, avoidance of probate is a primary reason why many individuals choose to create trusts as part of their estate planning strategy.