Trust

A trust is a legal arrangement in which one party (the trustee) holds and manages assets on behalf of another party (the beneficiary). The trust is created by the settlor, who transfers assets into the trust and sets the terms of the trust agreement.

The trustee is then responsible for managing the assets in accordance with the terms of the trust agreement, which can include specific instructions on how the assets should be used, invested, and distributed to the beneficiaries.

Trusts are commonly used for estate planning, as they allow individuals to transfer assets to their beneficiaries while avoiding the probate process and providing additional flexibility in how assets are managed and distributed. Trusts can also be used for tax planning purposes, as certain types of trusts may offer tax benefits.

There are many different types of trusts, each with its own specific characteristics and uses.