Why is a Trust important ?
A trust is a legal arrangement in which one party, known as the "trustor" or "settlor," transfers assets to another party, known as the "trustee," who holds and manages those assets for the benefit of a third party, known as the "beneficiary." Trusts are commonly used for estate planning, asset protection, and charitable giving. They offer a way to manage and distribute assets according to specific instructions set forth in the trust document. Trusts can be revocable or irrevocable, depending on whether the trustor retains the ability to modify or terminate the trust after it is created.
A Trust can...
-
Protect Assets: Trusts can shield assets from creditors, lawsuits, and potential claims, providing a safeguard for beneficiaries' inheritance.
​
-
Help in Estate Planning: Trusts facilitate the efficient transfer of assets upon the trustor's death, potentially minimizing estate taxes and avoiding probate, thus ensuring a smoother distribution process.
​
-
Aid in Control and Management: Trusts allow the trustor to specify how assets are managed and distributed, including conditions for disbursement, such as reaching a certain age or achieving specific milestones.
​
-
Increase Privacy: Unlike wills, which become public record during probate, trusts offer confidentiality since they are administered privately, preserving the family's financial privacy.
