Estate Planning Investments Taxes

Q&A: What is a trust?

A trust is a fiduciary relationship in which one party (the trustor) gives another party (the trustee) the right to hold title to property or assets for the benefit of a third party (the beneficiary). 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, through irrevocable trusts, avoid or reduce inheritance or estate taxes.

See also:
Q&A: What are the main differences between revocable and irrevocable trusts?

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