What is a trust?

A trust is an arrangement where one person, called a trustee, holds legal title to property for the benefit of another person, the beneficiary. In Texas, a trust is a legal document that explains how assets (property, money, investments, etc.) are to be managed and transferred from one person to another. This document is created during the lifetime of the grantor, or the person who creates and funds the trust. The grantor will appoint a trustee to manage the assets in the trust and the beneficiary who will receive the benefit of the assets. The trustee is responsible for carrying out the wishes of the grantor according to the instructions stated in the trust document. The main purpose of creating a trust is to transfer money or assets to the beneficiary in a way that is tax-efficient and in a manner that ensures the wishes of the grantor are followed. Trusts can be used for a variety of reasons, such as protecting assets from creditors and avoiding probate. They can also be structured to provide benefits for minor children or other beneficiaries in the event of death or incapacity. Trusts are an important component of Estate Planning and can help to ensure that your assets are managed in the way you intend.

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