Probate can be time consuming and expensive. Unlike a will, a trust doesn t become public after the person dies. Only the trustee the person who manages the trust and the beneficiaries are told about it. Since it s not public, some attorneys say it s less likely to be contested. A trust is more flexible, which can be a plus for people who have tangled relationships, such as a parent who has children from different marriages.
Trusts can parcel out money over time, instead of all at once.
If a parent has a disabled child who s unable to care for himself, for example, a trust is the way to go. A trust will pay the bills without burdening the child with the responsibility. Also, if a young adult is in line to inherit a big chunk of money, a parent may opt for a trust. A trust can help avoid expensive estate taxes. Estates taxes can take up to 55 percent of someone s inheritance.