A trust is an arrangement for the transfer of property. A trust can be used to hold and manage assets, such as real estate or stocks that would otherwise have to be held by one person alone. The best trust companies (trustee) manages the trust’s assets on behalf of the beneficiaries (those who own the shares). The most common type of trust is called a “revocable living trust.
” This type of trust allows you to name yourself as the trustee and give yourself broad powers over the trust’s assets. You may also name other people as trustees. If you die before your trust becomes irrevocable, it will become irrevocable at that time.
An irrevocable trust is more formal than a revocable trust because it cannot be changed after its creation. It is usually set up with a lawyer. If you want to make sure that certain assets are protected from creditors, you should consider creating a trust instead of giving those assets directly to someone else. For example, if you own stock in a company and plan to retire soon, you might want to put some of your stock into a trust so that it will not be subject to claims against your personal assets.