A fully-funded revocable trust may allow property to avoid probate and pass to the beneficiaries you name, without the time and expense of probate court proceedings. The individual who creates a trust is commonly known as the settlor or grantor.
A revocable trust may be a good option in the following circumstances:
- A desire to avoid a probate court proceeding;
- A desire to make sure there is a successor trustee who can act immediately upon the death of the grantor (as opposed to waiting for a personal representative to be appointed as part of the probate process);
- A desire to have privacy with regard to financial assets and not have financial assets be made public as part of a probate proceeding;
- Large estates with tax planning issues;
- Special concerns with beneficiaries
There is more upfront cost involved in setting up a trust as opposed to a will. However, a fully funded trust can help families to avoid the expense of the probate process.