There are many advantages, such as avoidance of probate costs and delays. Until the death or disability of the trust creator, the home and other real estate in the living trust are treated normally. Stocks, bonds, bank accounts, automobiles and other major assets can also be held in a living trust. Since the living trust is revocable, these assets can be bought, sold and financed normally. When the trustor dies, the assets are distributed according to the trust s terms.
Privacy is a major advantage.
Unlike a will, which becomes part of the public probate file, the living trust terms remain private. For example, the late Bing Crosby held virtually all his assets in a living trust and its terms never became public. Still another advantage is that court challenges of living trusts are virtually impossible, whereas will challenges by disappointed relatives occur frequently. The five most popular methods of holding residence titles all have their pros and cons. Overall, the best method for most homeowners is the living trust, because of all its advantages and virtually no disadvantages.