Trusts are legal arrangements that allow you to transfer ownership of your assets to a trustee, who manages them for the benefit of beneficiaries. There are various types of trusts, each with its own specific purposes.
One of the primary reasons for establishing a trust is asset protection. By transferring assets into a trust, you can protect them from potential creditors, lawsuits, and estate taxes. Trusts can also be used to provide financial security for beneficiaries, such as children or disabled family members.
When considering a trust, it’s important to consult with a legal professional to determine the most suitable type of trust for your needs. Factors such as the size of your estate, your beneficiaries, and your estate planning goals will all influence the choice of trust.