What is a trust account and how does it work?

A trust account is an estate planning tool used to manage assets on behalf of another person or entity. It is typically established by a trustee, who holds legal title to the assets for the benefit of a beneficiary. These accounts are most commonly used in Massachusetts to protect assets and provide financial security for future generations. Trust accounts are managed by a trustee, who is responsible for investing, reinvesting, and managing the assets according to the trust document. The trust document, which is typically established by an attorney, outlines the guidelines for how the assets should be handled and sets out the rights and responsibilities of all parties involved. The trustee has a fiduciary duty to the beneficiary, meaning they must act in the best interest of the beneficiary. Trusts can be either revocable or irrevocable, and the type of trust established will depend on the purpose of the account and the wishes of the grantor. A revocable trust can be changed or revoked by the grantor at any time, while an irrevocable trust cannot be changed or revoked without the permission of all parties involved. Regardless of the type of trust, trust accounts can help protect assets from taxes, creditors, and estate litigation. This is because the assets in the trust are typically owned by the trustee, and not the grantor or beneficiary. In addition, trust accounts can provide a way for individuals to pass on wealth and assets to future generations in a secure and tax-favored manner.

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What is a trust account and how does it work?

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