A trust is a relationship established between a trustee and an estate for the purpose of benefiting another, often a minor. Other beneficiaries can include organizations, or even the living but incapacitated owner of an estate.
Under a trust the ownership of an estate, or portions of that estate, are legally transferred to the trustee. The trustee of an estate has a fiduciary responsibility to act only in the interest of the beneficiary and in accordance with the instructions of the established trust.
Trusts can be created while the owner of the estate is still alive or they can be created upon the owner’s death, as usually stipulated in a will.
For larger estates, trusts can provide consequential tax benefits, even while the owner of the estate is still alive. These trusts are often referred to as Living Trusts.
Trusts can be a very important tool in general estate planning.
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