The living trust is very useful in estate planning. The living trust is revocable, which means the trust can be cancelled and the assets taken back at any time. A living trust helps avoid the cost and delay of probate and can be changed or modified at any time. It can keep assets safe in the event of incapacity and provide instructions to the trustee how trust property should be managed. A living trust can pass assets on to your beneficiaries immediately upon your death, or designate that distributions be made over time. Living trusts can even be used to protect the interests of beneficiaries against creditors.
Without a revocable living trust, the court will distribute assets under a will. This can be time-consuming and creates an unnecessary expense. Probate costs are generally not necessary and can seriously delay estate distribution. A living trust circumvents the probate process and immediately transfers assets to the beneficiaries.
Trusts can be beneficial in that they can designate funds to be used for a specific purpose, avoid probate, and help retain privacy. There are several different types of living trusts with various benefits.