The benefits of a trust are not limited to large and complicated estates because a trust allows for the grantor (or creator of the trust) to control his or her assets throughout their lifetime until they are unable or unwilling to continue in that role. At that time, the stewardship of the trust passes to a person or persons of the grantor’s choosing to continue financial management. A trust is simply a tool to be used by a grantor during his or her life to manage assets and provide for a smooth transition of asset management while he or she is still alive and unable to handle those responsibilities, or chooses not to. It can be used for relatively modest estates to allow for financial management constancy in the event of the grantor’s incapacity and avoids court involvement and conservatorship proceedings during the grantor’s lifetime.
While a person with a smaller estate may decide a will is a better fit for them, a trust provides more protection to the grantor for uninterrupted financial management during their lifetime and at their death. A trust can also provide increased protections to the grantor’s beneficiaries at the grantor’s death; in fact, a trust can provide better protections to a beneficiary than the beneficiary could provide for him or herself!
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