Trust Ownership
A trust is a legal arrangement in which a person, called a grantor, establishes a trust arrangement and transfers assets to the trust for a person, called the trustee, to control and manage the property for the benefit of the beneficiaries. The grantor no longer holds a legal title to the property, the trustee now holds the legal title. The grantor can also sometimes be named the trustee (depending on the type of trust).

The main advantage of a trust is that that it will usually avoid probate. Other advantages of a trust include:

· A will becomes public after the property owner dies. However, a trust stays private. Only the beneficiaries and the trustee are informed of the trust. A trust may be less likely to be contested since it's not public. · A trust has the advantage of being more flexible than a will. This ability can help people who have complicated relationships. An example is someone who has many children from multiple marriages.

· A trust doesn't have to transfer all the property at once. It has the ability to transfer property over time. A parent could set up a trust to take care of the bills of a disabled child without burdening them with all the money at once. Also, a parent may not want to give a large amount of money to a young child, teenager or even a young adult, since the child doesn't have the maturity to handle the money. A trust can transfer enough money a month to live on until the child reaches adulthood or can handle it.

· A trust may be used to avoid estate taxes. These taxes can be quite high but with proper planning, these can be substantially minimized.

Transfer Through Probate Process

Related Articles
  1. Managing Wealth

    Pick The Perfect Trust

    Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
  2. Financial Advisor

    Irrevocable Trusts: New Trends You Need to Know

    Several improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
  3. Retirement

    How To Set Up A Trust Fund In Australia

    No, they're not just for the super-rich. But you need to know the rules.
  4. Investing

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  5. Managing Wealth

    Surprising Uses for Trust Funds

    Here are five common situations where a trust fund makes financial sense.
  6. Managing Wealth

    How to Set Up a Trust Fund in Canada

    You don't have to be rich to make use of a trust fund. Rules can be complex; here's what you'll need to discuss with your lawyer.
  7. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  8. Retirement

    Estate Planning for Beginners: Part Three

    A primary purpose of most trusts is to provide a timetable for the distributions of assets where an outright distribution may not be warranted.
Frequently Asked Questions
  1. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

    Only you and your financial advisor, family, accountant, etc. can answer the "should I?" question because there are many ...
  2. My wife and I both converted our Traditional IRAs to Roth IRAs over a decade ago and have invested the maximum allowed each year since. We're buying our first home soon. Do we both qualify for one-time, tax-free, $10,000 distributions?

    You and your spouse each qualify for a penalty-free distribution of up to $10,000 for the purchase, acquisition or construction ...
  3. Is a Thrift Savings Plan (TSP) a qualified retirement plan?

    Take advantage of the government's retirement plan for employees with the Thrift Savings Plan. As with a 401(k), contributions ...
  4. Who manages the assets in a Roth 401(k) account?

    Learn how to personally manage the assets in your Roth 401(k) plan and determine the best options available to help meet ...
Trading Center