Why might someone choose to establish a trust as part of their estate plan?

Establishing a trust as part of an estate plan can provide significant benefits, particularly regarding the management of assets for beneficiaries. When a trust is created, a trustee is appointed to manage the assets held within the trust. This can be particularly advantageous for individuals who want to ensure that their assets are managed according to specific terms and conditions, as dictated by the trust document.

By appointing a trustee, the grantor (the person who establishes the trust) can choose someone they trust to oversee the distribution and management of their assets, ensuring that the beneficiaries receive their inheritance in a manner that aligns with the grantor's wishes. This can be crucial if the beneficiaries are minors, individuals with special needs, or those who may lack financial experience.

Additionally, trusts can sometimes help in avoiding probate, providing privacy regarding asset distribution, and offering flexibility in how and when beneficiaries receive their inheritance. These advantages underscore why many individuals incorporate trusts into their estate planning strategy.