1. To
avoid probate.
2. To avoid
creditors who cannot file claims against the trust
assets. They can file only against the probate estate.
This is good for people in risky occupations. However,
the protection against creditors exists only after
death.
3. To
disinherit a spouse and get around his or her right to a
statutory share of the probate estate regardless of what
a will says.
4. For
privacy. The trust assets do not go through probate court
where an estimate of the value of the assets is part of
the record and where an inventory of the probate assets
may be filed and is a public record.
5. To avoid
probate of out of state real estate. If you own real
estate in another state the probate of your estate in
that state is often required in addition to the state
where you live. By holding title to that real estate in
trust you avoid the probate. If you are trustee the title
passes to a successor trustee on your death by terms of
the trust and not by virtue of your will or the probate
act of the state in question.
