A trust is a legal arrangement that creates a separate entity that can own property and is managed for the benefit of one or more beneficiaries. A living trust is created while its grantor is still alive. A testamentary trust is made upon the grantor’s death, usually by another trust or a will. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider consulting with a professional who is familiar with the laws and regulations.
« Back to Glossary Index« Back to Glossary Index