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. Investing

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  4. 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.
  5. 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.
  6. Managing Wealth

    Understanding Revocable Trusts

    A revocable trust is a legal arrangement whereby a grantor transfers property to a trustee who holds the property in trust for the grantor’s benefit.
  7. Investing

    The Benefits of a Third-Party Special Needs Trust

    How a third-party special needs trust can help your special needs child.
  8. Financial Advisor

    How Trust Funds Can Safeguard Your Children

    Certain types of trust funds can help to protect your assets from bankruptcies and civil actions, and can be established to safeguard your children and designated beneficiaries.
  9. Managing Wealth

    Encouraging Good Habits With An Incentive Trust

    Money can be a powerful motivator - why not use it to teach your heirs positive lessons?
  10. Personal Finance

    Buying a Home in Trust

    Buying a home in a real estate trust allows for tax advantages, possibly avoiding probate court, and future family conflict. Below we outline the two different types and what to arm yourself ...
Frequently Asked Questions
  1. Why Do Most of My Mortgage Payments Start Out as Interest?

    Fear not: Over the life of the mortgage, the portions of interest to principal will change.
  2. What is the difference between secured and unsecured debts?

    The differences between secured and unsecured debt, and how banks buffer risks associated with each type of loan through ...
  3. How Many Times has Warren Buffett Been Married?

    Warren Buffett has been married twice in his life, but the circumstances surrounding the marriages were unconventional.
  4. What's the smallest number of shares of stock that I can buy?

    Many people would say the smallest number of shares an investor can purchase is one, but the real answer is not as straightforward. ...
Trading Center