What type of estate is created to avoid probate or provide tax benefits?

A revocable trust is a legal arrangement that allows an individual to transfer ownership of assets into the trust while retaining control over those assets during their lifetime. One of the primary reasons for establishing a revocable trust is to avoid probate, which is the court process required to validate a will and distribute a deceased person's assets. By placing assets in a revocable trust, these assets can be transferred to beneficiaries upon death without going through the probate process, thereby saving time and costs associated with probate.

Additionally, revocable trusts can offer tax benefits, as they can be organized in such a way that helps in estate planning and can help mitigate certain taxes for heirs. Unlike a will, which only goes into effect after death, a revocable trust allows for a smoother transition of assets and can address issues related to incapacity as well.

In contrast, while other options like a life estate, joint tenancy, and tenancy in common provide some benefits in terms of ownership and survivor rights, they do not primarily serve the purpose of avoiding probate or providing significant tax benefits in the same way that a revocable trust does.