Financial Planning Q 'n A

What is a trust?

A trust is an arrangement where assets are transferred from one person to another party for the benefit of a third party. There are many different types of trusts with many different purposes. In estate planning, the primary purpose of a trust is transfer wealth to others with tax minimization and control being primary objectives. Certain trusts are living trusts and others are created on the death of an individual. An accountant or lawyer would assist you in determining whether or not a trust is useful in your circumstances.