Especially if you have a family and a substantial net worth, setting up a trust is one of the most important things you can do for your loved ones. A trust is something that can help you accomplish your financial goals such as managing assets, controlling the distribution of your estate, minimizing estate tax or protecting your property. A trust can come in many forms, which are all designed for meeting various specific goals. With so many complex aspects of the trust, it is wise to have legal & tax advice from an estate planning attorney.
Basically, a trust is a legal entity that holds assets for the benefit of another. You can put almost anything in a trust, such as stocks, bonds, life insurance policies, real estate, valuable antiques or even cold hard cash. As the grantor, or creator of the trust, you can put whatever you want in it and you can name whomever you please to have access to those assets in the case of your death. The different types of trusts help individuals to meet different goals, such as generating income or providing cash for beneficiaries to pay estate taxes by putting a life insurance policy in a trust. An appointed trustee can manage the assets and distribute them to beneficiaries per your instructions.