Understanding the Benefits of Trusts in Estate Planning

Robert is a 72-year-old widower with a net worth of approximately $8 million. His estate includes a family home valued at $1 million, a diversified investment portfolio worth $6 million, and a small business valued at $1 million. Robert has two children, Anna and Matthew, both of whom are financially secure and have their own careers. He wishes to ensure that his estate is divided equally between his children while minimizing tax implications.

Robert is considering whether to establish a trust as part of his estate plan. He wants to understand the potential benefits and drawbacks of this decision. Which of the following statements best describes the advantages of using a trust in estate planning?