what is an estate trust

Best answer


A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is afiduciary arrangement that allows a third party,or trustee,to hold assets on behalf of a beneficiary or beneficiaries.

People also ask


  • What is the difference between a trust and an estate?

  • Trusts and estates are the two most common mechanisms for passing down assets. An estate is everything that you own at the moment of your death, and is passed in a one-time distribution to your legal heirs. An estate is a legal entity that can exist for generations, and distributes assets according to a series of rules and instructions.

  • What is a trust in probate law?

  • Many trusts are created as an alternative to or in conjunction with a will and other elements of estate planning. State law establishes the framework for determining the validity and limits for both. The Uniform Probate Code has shaped state law in this field.

  • What is an estate planning trust and why do I need one?

  • There are several purposes of an Estate Planning Trust, but one of the more common reasons people choose to use them is to better-ensure their assets are handled exactly as they wish, from the moment the Trust goes into effect, until long after passing. They can also be used as a means to manage tax consequences on an estate.

  • What are the benefits of a trust?

  • A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.

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