Trusts
A trust is a legal arrangement where one party, called the trustee, manages property or assets for the benefit of another party, known as the beneficiary. The person who creates the trust, called the grantor, specifies how the assets should be handled and distributed. Trusts are often used for estate planning, ensuring that assets are distributed according to the grantor's wishes after their death, while potentially avoiding probate and reducing taxes. They can also provide financial support for minors or individuals unable to manage their own finances. Trusts offer flexibility and protection for both assets and beneficiaries.
Additional Insights
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A trust is a legal arrangement where one person, known as the trustee, holds and manages assets for the benefit of another person, called the beneficiary. The person who creates the trust, known as the grantor, specifies how the assets should be managed and distributed. Trusts can help in estate planning, ensuring that assets are passed on according to the grantor's wishes, providing tax benefits, and protecting assets from creditors. They come in various forms, such as revocable or irrevocable trusts, each serving different purposes based on the grantor's needs.