A trust is created to hold, manage, and distribute assets to beneficiaries as indicated by the grantor of the trust. There are three major parties to a trust and two principal forms of trusts. What is/are the primary reason (s) to transfer through trusts?

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The primary reason for transfer through trust are to provide for multiple beneficiaries and to avoid probate. Additional reasons are to manage property in the event of incapacitation, to protect beneficiaries from themselves and others, and to reduce transfer taxes. The three major parties to a trust are: the trustor who created the trust and whose property is used to fund the trust; the trustee who takes legal title and manages the trust assets; and the beneficiary who enjoys the beneficial interest in the trust. There is inter vivos trust that are activated immediately upon its creation and usually funded during the life of the trustor and there are testamentary trusts that are written into the will and implemented upon death.

A Trust Is Created to Hold, Manage, and Distribute Assets