WHY CREATE A TRUST?
"If you fail to plan... You are planning to fail". Eventually we all leave this earth. Worse, sometimes we linger for years with medical problems (and huge costs). Our family and things we were managing are left without a boss, or anyone in authority to make decisions, handle income, make changes, or keep activity smooth.
Without a trust, only the court can make serious decisions. That could take a long time and cost lots of money. A lot of things can go wrong in the months or years for a court to finalize things. A will is a help, but only after the court reviews the will and takes action. Again, perhaps years.
A properly established trust that has been completed (many are never completely activated) will instantly take effect upon your inability to carry on. Far better than a will. A trust usually avoids any requirement to be reviewed by a court. Less expense too.
Many of us work for years thinking that we are OK because we live a fair honest life and avoid activity that can get us in trouble.
Of course, most people wait until they are older or start having problems to start planning and protecting.
Unfortunately, that leaves us in a very precarious position. If anyone around us gets into an accident, or uses a product with problems, or gets in a dispute... we could be involved in an expensive lawsuit and could lose everything we had worked for our whole adult life.
Insurance can only stretch so far, and then you're on your own. There are limitations, restrictions, deductibles, uncovered items, natural acts-of-God, and sometimes just a refusal by an insurance company.
When you realize that you must pay to defend yourself (in advance) regardless of guilt or innocence, you find out everything is at risk. Unprotected assets are at risk, unless owned separately in trust.