What Is a Trust?

A trust is a legal arrangement where a trustee holds and manages assets on behalf of one or more beneficiaries. The trustee is responsible for administering the trust and using its assets for the benefit of the beneficiaries, according to the terms of the trust agreement.

There are several types of trusts, including revocable and irrevocable, living, testamentary, charitable, and special needs. Each type of trust serves a different purpose and has specific terms and conditions.

In general, trusts can be used for various purposes, such as transferring wealth from generation to generation through estate planning, reducing taxes, protecting assets from creditors, and providing for the care of family members with special needs.