Avoid probate, a process that can be both time-consuming and expensive. Control the disbursement of assets to their heirs, who may not be of sufficient age or sophistication to handle a large windfall. Provide for children and other beneficiaries with special needs. Protect assets from creditors and those who prey on beneficiaries who are unaccustomed to managing large sums of money. Plan for second marriages or nontraditional family situations.
Some families obtain a power of attorney to address the relative's needs.
However, that person is left to decide how to invest a loved one's assets in a way that will pay the bills and care for the relative's needs in the future. That's a lot of responsibility and can create friction between family members, Mr. Pindle said. However, if the individual has a trust, those responsibilities will be assumed by the trustee, allowing family members to focus their attention on loved ones. The tax advantages of trusts also are compelling. Services Available Vanguard can carry out all the provisions of your trust agreement, including managing trust assets, coordinating distributions, scheduling transactions, issuing tax reports, and responding to the requests and needs of the beneficiaries.