Trusts

A trust is a legal entity that holds real assets. The trust exists, but you can't see it or touch it. The document creating the trust is sometimes called a trust agreement or a declaration of trust.  

Regardless of the name, the essential elelments of a trust remain the same. The trust has assets, a trustee or trustees who handle the assets, and a beneficiary or beneficiaries who are entitled to the assets or income from the assets, either immediately or some time down the road.  

There are different kinds of trusts for different purposes. These include living trusts, irrevocable trusts, life insurance trusts, special needs trusts, and spendthrift trusts, to name a few.

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Many people hire a lawyer to prepare their trusts because, to be effective, a trust must satisfy the requirements of state and federal law, meet the specific needs of the individual creating the trust, and take into account tax implications.