Or, for an additional charge the donor can appoint a trust company to act for him/herself. Trust company professionals provide administrative, investment, accounting, legal and tax management for the beneficiaries.
During any incapacity, a trusted spouse, child, personal friend or other person (contingent trustee) can be appointed to step in to care for and represent the needs of the grantor/beneficiary. That person will manage your assets during your incapacity and take care of you without having to declare you incompetent and invoke a guardianship. Upon recovery you can resume your duties as trustee.
Guardianship is a nightmare legal proceeding that makes you a ward of the state. It’s expensive, public, humiliating, restrictive, and burdensome. You don’t want to go there. A well drafted trust (along with powers of appointment) avoids that problem.
If you are a member of the sandwich generation, trusts may be a convenient way for you to manages assets for your parents, in-laws, and/or children. Your parents may need and/or appreciate the help, and the trust gives you a structure to provide for them. Again, this heads off any potential need for a guardianship.
As the key provision of an estate plan
The revocable trust is an invaluable tool for estate planning. Bypassing probate is a primary benefit.
Importantly, when the grantor of the trust dies property held by the trust bypasses probate. This should result in considerable reduction of cost, aggravation and time.