A relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. There are two types of trusts, a Living Trust, which is a trust that is in effect during the trustor’s lifetime and a Testamentary Trust, which is a trust that is created through the will of a deceased person.
A trust can be used if a beneficiary is under age or has a mental disability that impairs the person’s ability to maintain his or her own finances.
