Some examples of how a trust can help
Bobby and Sue have a son Larry. Larry likes to spend money and has a substance abuse problem. Bobby and Sue created a trust for Larry, managed by Bobby’s brother. This trust has $100,000 in an investment account that Larry can only access through Bobby’s brother (the trustee), and he will only have access to the funds once he turns an age that Bobby and Sue are comfortable with.
Bobby and Sue own a piece of property that they don’t want Larry to sell, because they want it to go to their grandchildren (Larry’s kids) once Larry passes. They included in their trust a provision preventing Larry from selling the property, thereby keeping it for their grandkids in the future.
Bobby and Sue have 4 bank accounts, 3 investment accounts, 2 pieces of real estate and an RV. Bobby and Sue have properly funded their trust by transferring all these assets into the trust (this means titling into the name of the trust). Upon passing, these items will pass to their children with very minimal work, and will not require probate.