Trusts are created in order to avoid probate administration and provide for special circumstances. A trust is a legal relationship protected by the courts in which one person, the trustee, holds a property interest for the benefit of another person. There are many uses for trusts, such as protecting assets from creditors, simplifying asset distribution and preventing beneficiaries from misusing assets. Trusts also enable you to keep the asset distributions private, since there is no public record of the transactions.
Revocable trusts let you manage assets while you are alive and distribute them after death, which may lead to a reduction in taxes. Revocable trusts can be altered, but irrevocable trusts cannot be changed without the agreement of all parties. Irrevocable trusts are usually created to preserve or protect assets. For this reason, irrevocable trusts are very useful in life insurance planning. Trust lawyers will help you evaluate your needs.