Here is what the trust is and why you might need one

The word trust is applied to all types of relationships, both personal and professional, to indicate that a person trusts another person.

for our purposes, a trust is a legal device for asset management. Through a trust, a person (the constitute or trustor ) transfers the ownership of property to another person (the trustee ), which then handles property in a manner determined in favor of a third party (the trust beneficiary ). A separation of legal and beneficial interest in the property is a common denominator of all trusts.

In other words, the legal rights of ownership and control remains with the fiduciary , who then is responsible for property management at the direction of component in the trust document for the ultimate benefit of trust beneficiary .

a trust can be a living trust , which takes effect during the lifetime of the settlor, or it can be a testamentary trust , which is created by the will and does not become operational until death.

In addition, a trust can be a revocable trust , which means that the grantor has the right to terminate the trust in the life and recover trust assets, or it can be a irrevocable trust . this means that the component can not change or terminate the trust or recover assets transferred to the trust

trusts may be used:

• to manage the assets for the benefit of minor children
• to ensure the grantor that children benefit from the trust assets, but will not have control of these assets until the child is older
• to manage assets on behalf of a disabled child or special needs, without disqualifying the child to receive benefits Government
• to provide children from a previous marriage constituting
• As an alternative to a will (a revocable living trust)
• to reduce property taxes and, possibly, income taxes
• to provide a surviving spouse during his / her life, with the remaining assets of the trust from other designated beneficiaries of the component to the death of the surviving spouse

As you can tell from the description, trusts are complex legal documents and are not appropriate in all situations. Therefore, you should consult a qualified legal counsel if you think trust will help your overall financial situation.