A trust is a legal entity that is created to hold assets for the benefit of another individual or entity. A trust is created by a settlor who entrusts some or all of his assets to people of his choice (trustees). The trustee holds legal title to the trust assets, but they are under an obligation to hold the property for the benefit of one or more persons or organizations (the beneficiary). The trustees are obligated to administer the trust in accordance with both the terms of the trust document and the governing law.
A trust is a very powerful tool for managing your assets by reducing complications and problems that may arise during the probate proceedings. Trusts have many advantages over a will. The terms of a will are public whereas the terms of a trust are not. Additionally, trust can provide spendthrift protection by protecting one’s self against one’s own inability to handle money.
At the Law Offices of Stephen J. Hoffmann, we will help you define your objectives and create a specialized plan to meet your estate planning needs. Contact Us today for a free consultation.