Trusts are popular for people with complicated or extensive assets to pass along to family. They are highly customizable as legal documents, so they provide flexibility and control for estate planning purposes. Whereas a will or standard probate process pass inheritance in a lump sum, a trust can establish structured payouts over time. That’s useful for beneficiaries who might receive inheritance at a young age that might encourage unwanted uses of those funds.

Revocable living trusts allow the trustor to alter the terms of the agreement. Grantors of revocable trusts can add or remove assets from a trust over time as they see fit, which is great for people with a variety of holdings across different asset classes. Beneficiaries can be changed over time as needs and relationships evolve, as well.

In many states, trusts allow people to pass assets to heirs without a court probate proceeding. That can reduce the cost of estate administration and allow for a more orderly, discreet process.

Trusts can also be valuable tools in the event that a grantor becomes incapacitated by illness, an accident, or aging. By naming a trustee, a trustor ensures that a trusted person will be controlling those assets. That’s extremely valuable for people dealing with long-term care or other similarly expensive needs late in life. Assets in a living trust can be used for the benefit of the grantor if the need arises and the trust agreement so specifies, not just the people due to inherit funds.

Assets in a revocable trust at the time of someone’s passing are generally still subject to estate taxes. However, for U.S. residents, the first $12.9 million of inheritance is currently exempt from estate taxation. That exemption is only $60,000 for nonresidents, so estate tax minimization is often more urgent for non-citizens who make assets or earn money in the U.S.