A trust is a legally binding document created by you to transfer property to a trustee who holds and manages that property for the benefit of another. A trustee may be either a natural person or an entity (such as a company or public body). The terms of the trust are usually written down in a trust instrument and must specify what property is to be transferred into the trust and who the beneficiaries will be. It may also set out the detailed powers and duties of the trustee.
There are many reasons why you may want to create a trust. Trusts may be created purely for privacy; the terms of a will are public record and the terms of a trust are not. Trusts with spendthrift provisions can be used to protect a beneficiary from his or her own inability to handle money or creditors. In many cases, the tax consequences of using the trust are more favorable and trusts are, therefore, frequently used to minimize tax consequences.
The Becker Law Firm can create trusts individually or as part of a comprehensive estate plan. If you are interested in a trust, contact us to schedule your free phone consultation.