Understanding Trusts in Greater Detail

A trust is a legal arrangement in which one party (the grantor) gives another party (the trustee) the right to hold title to property or assets for the benefit of a third party (the beneficiary). The trustee is responsible for managing the trust assets according to the terms of the trust agreement, which is a legal document that outlines the rights and responsibilities of the grantor, trustee, and beneficiary.

Trusts can be used for a variety of purposes, including estate planning, asset protection, and charitable giving. They can be revocable or irrevocable, meaning that they can be changed or terminated by the grantor at any time (revocable) or cannot be changed or terminated once they have been created (irrevocable).