The Ultimate Guide to Trusts

When it comes to estate planning, trusts are an incredibly powerful tool that can be utilized to protect and distribute assets, minimize tax liabilities, and ensure that your wishes are carried out after you pass away. But what exactly is a trust, and how does it work? At its most basic level, a trust is a legal arrangement in which one person (the trustee) holds assets on behalf of another person (the beneficiary). The trustee has a fiduciary duty to manage the assets in the trust in accordance with the terms of the trust agreement, which outlines the specific instructions for how the assets are to be managed and distributed. There are a wide variety of different types of trusts, each with its own unique characteristics and benefits. Some of the most commonly used trusts include: - Revocable trusts - Irrevocable trusts - Testamentary trusts - Charitable trusts - Special needs trusts - Spendthrift trusts and others