What type of trust can help avoid guardianship and probate?

A living trust is a legal arrangement that helps manage an individual's assets during their lifetime and allows for those assets to be transferred seamlessly upon their death. One of its primary benefits is that it can help avoid both guardianship and probate.

When an individual establishes a living trust, they can designate a successor trustee who will manage and distribute the assets according to their wishes, eliminating the need for court intervention. This means that if the individual becomes incapacitated, the successor trustee can take over the management of the trust's assets without the need for a guardianship proceeding. Furthermore, upon the individual’s passing, assets held in the trust can be transferred to beneficiaries without the delays and expenses typically associated with probate.

In contrast, a revocable trust, which may seem similar, also serves to avoid probate but may still necessitate guardianship if the trust creator becomes incapacitated and has not designated a successor or if the trust isn't properly funded. Testamentary trusts only come into effect after the individual’s death and are typically part of a will, meaning they do not avoid probate, as they are subject to the probate process. Charitable trusts are designed for philanthropic purposes and do not directly pertain to the management of an individual's assets in a way that affects guardianship