What is a “trust”? A trust is the right to the beneficial enjoyment of property and assets of which legal title is held by another person or entity.
There are many different kinds of trusts that may have many different purposes such as:
1) Avoiding probate and simplifying the transfer of property and assets to heirs and beneficiaries;
2) Providing income to a spouse;
3) Providing a source for expenses for the education of children or grandchildren;
4) Protecting a beneficiary of a trust from his or her creditors; or
5) Benefiting a charity or the public good.
A trust’s distinguishing feature concerns the fiduciary relationship created under the trust in which one person (the trustee) is the holder of the legal title to the property held by the trust. The trustee is bound to keep or use the property for the benefit of another person (the beneficiary).
Have further questions about a “trust”, give us a phone call. We will be happy to answer your questions.
This insight into the law is provided by Michael S. Bailey, Esq. of the law firm of Bailey & Gunderson Co., L.P.A., with offices in Norwood, Western Hills and Anderson Township. Phone: (513) 631-0022.
