"Trust Me" - A Word About Trusts:
In life we often hear the word "trust" employed,
almost always with a special, distinctive connotation.
Invoking the Deity, "In God We Trust" is the official
national motto etched on all U.S. currency and coinage.
When people speak of "trust," they usually describe a
unique personal relationship on which reliance
rightfully can be placed. In the eyes of the law, the
meaning of the word "trust" also partakes of this
special quality of high purpose, reliance and mutual
confidence.
In the law, a "trust" is a legal device in
contract form allowing title to, and possession of
property to be held, used and/or managed by one person,
the trustee, or property manager, for the benefit of
one or more other persons, the beneficiaries, or
recipients. A trust is initiated by a grantor, or
creator, the original owner of property that is
transferred to the trust and becomes trust assets. In
essence the contract, in the form of a "trust
declaration," is between the grantor and the trustee,
with the beneficiaries as third parties who profit from
this voluntary arrangement.
A trust is one of the most ancient and flexible
legal mechanisms available, and is useful for almost
any purpose that is legal or not against public policy;
a trust can conduct a business; hold title to and
invest in real estate, cash, stocks, bonds, negotiable
instruments and personal property; care for minors or
the elderly; pay medical, educational or other
expenses; provide financial support in retirement,
marriage or divorce; and serve as a major avenue of
avoidance for the muddle of probate courts and the
burden of inheritance taxes.
By their very nature trusts are relatively complex
and technical, a domain of lawyers and accountants,
investment planners and bankers, which means expense of
creation and administration. But do not let complexity
or cost dampen your interest - a trust can play a major
role in your estate, tax, gift and investment
planning - and save (and make) you and your family lots
of money - far more than it will cost to establish and
operate.
