Friday, August 12, 2011

Advantages of Trusts

The advantages of trusts are 1) their flexibility, 2) ability to control assets, 3) avoidance of probate court, 4) various asset protection options (for certain non-self settled irrevocable trusts), and 5) privacy (the trust document usually does not need to be recorded or filed in court).  The main disadvantages are 1) cost, 2) the trust does not control property that is not transferred into it, and 3) the lack of court supervision can sometimes be a disadvantage if the successor trustee is not trustworthy.