There is not a one size fits all answer to this question. A trust is a legal arrangement where a trustor transfers assets into a trust for a trustee to manage for the benefit of a beneficiary. There are lots of different kinds of trusts depending on an individual’s needs or hopes for transferring wealth. For example, a trust may be a good option if you want to make a gift to a beneficiary who is a minor or who may lack the skills to manage their own finances. A trust can also be a good plan if you want to make a gift to a beneficiary who is already receiving or may receive needs-based government benefits in the future. If you own real estate in another state, a trust can be a helpful way to transfer that property to beneficiaries at your death without the need for probate in more than one state.
Given all the different kinds of trusts and the individualized reasons behind setting up a trust, it is important to talk to an experienced estate planning attorney about your goals for setting up a trust.