Setting up a trust creates a number of benefits - some of these benefits are detailed below.
Avoiding probate - Assets that are held in a living trust are not subject to probate, which is the legal process that occurs after an individual passes away. In the event of death, the trust enables the named trustee to transfer property to beneficiaries without incurring any additional legal fees or undergoing any probate proceedings.
Maintaining privacy - As opposed to wills, living trusts are private documents that are not publicly published. Similarly, a living trust helps individuals maintain their privacy by not going into probate, the proceedings of which are public record.
Protecting assets - Once property is entered into a trust, it is protected from any legal proceedings, creditor claims, or judgments filed against the deceased or his or her named beneficiaries.