What is a trust?

Most people create trusts so that their loved one won’t have to go through the costly and time-consuming hurdles in probate court. Trusts are often handy during a sudden and untimely death, paving the legal way for an individual’s last wishes to be carried out systematically and efficiently. This is particularly noteworthy during the current pandemic and the health uncertainties which remain.. But, what is a trust? A trust is a legal entity that you create to protect your assets for the benefit of your loved ones upon your death. A trust is different from a will in that during your lifetime you transfer some or all of your property to the trust  for the benefit of your loved ones, which kicks in upon your death. In your trust documents, you must name a trustee or co-trustees to manage your trust for the benefit of your beneficiaries (loved ones). 

A trust can provide estate tax protections are critical in asset protection planning and they are used by families from a range of economic backgrounds to determine who and how their assets are distributed. 

A trust allows you to define and determine the terms of the trust, making sure that the property is protected from against your creditors during your lifetime as well as the creditors of your loved ones upon your death.