a legal arrangement where an individual or Corporation controls property or funds for the benefit of A different particular person or organization:

These examples are from corpora and from sources on the internet. Any thoughts inside the examples don't stand for the viewpoint in the Cambridge Dictionary editors or of Cambridge College Press or its licensors.

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A trust can be employed to find out how an individual’s cash really should be managed and distributed while that particular person is alive or right after death. A trust allows an estate stay away from taxes and probate. It may shield belongings from creditors and dictate the phrases of inheritance for beneficiaries.

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The negatives of trusts are that they demand time and money to develop, and they can't be easily revoked.

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Frequent Reasons for Trusts The trust fund is surely an ancient instrument (relationship back again to feudal instances, in truth) that is sometimes greeted with scorn as a consequence of its Affiliation Together with the idle wealthy (as within the pejorative "trust fund little one").

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By placing belongings into an irrevocable trust, you throw in the towel Management and ownership of these. This implies they won't be viewed as element of your estate, which will help to minimize estate tax Once you die and avoid the probate system.