What is a simple definition of a trust? In general, a trust is a relationship in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another. A trust is formed under state law.
What is the main purpose of a trust? Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes.
How do trusts work simple? Simple trusts allow grantors and donors to distribute portions of their assets both before and after their death. The different types of simple trusts available make it possible to pick and choose based on a person’s individual circumstances and any anticipated changes or developments in the future.
What is a trust and how do you use it? A trust is a legal arrangement intended to ensure a person’s assets eventually go to specific beneficiaries. The person creating the trust puts assets in the name of the trust and authorizes a third party to administer those assets for the trust creator and the beneficiaries.