California residents may choose a trust over a will for estate planning purposes under specific circumstances. A trust is a legal arrangement where a trustee holds and manages assets for beneficiaries. This differs from a will, which distributes assets after death through probate court. A trust can offer greater control over asset distribution, potentially avoid probate, and provide for ongoing management of assets even after the grantor’s incapacitation. For example, a trust could be established to manage assets for minor children or individuals with special needs, ensuring their care even after a parent’s death.
Probate avoidance is a significant driver for establishing a trust in California. Probate can be a time-consuming and expensive process, potentially tying up assets for months or even years. Trusts can also provide greater privacy, as probate proceedings are public record, while trust administration is generally private. Historically, trusts were primarily utilized by the wealthy. However, as probate costs have risen and the desire for greater control over assets has increased, trusts have become a more common estate planning tool for a wider range of individuals.
