question.jpgIn Trusts and Estates

What is the purpose of a trust?

The purpose of a trust is essentially to provide someone with the benefits of certain property while, at the same time, protecting them from themselves and limiting or conditioning how they can use the property. For example, a trust would be very useful if you wanted to give money or other property to a minor, who may not have the maturity or even the legal capacity to control and manage the property. In addition, trusts allow for someone else to manage the property, which can be useful when the property management requires significant time and/or skill (such as managing a large stock portfolio or several real estate properties). Finally, when property is put into a trust, it keeps that property out of probate, because the property is no longer belongs to the settler (the person who created the trust).