2007-02-09 01:56:19 · 3 answers · asked by nightlights00 2 in Business & Finance ➔ Insurance
Trusts can be used to try to shield assets from creditors, to try to save money on taxes, to donate property to a charity while remaining in control of the property and for other similiar purposes.
With a tust you are nominally transfering ownership of your property to the trust. The trust is charged with the task of maintaining the property or selling it and donating the proceeds to heirs or charity.
The IRS is very suspicious of trusts where ownership and/or control of the trust assets remain with the donor.
Some of the greatest universities and hospitals in the US were endowed by trusts set up centuries ago by the so-called robber barons.
2007-02-09 04:54:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
While there may be others, the primary reasons for having a trust are (1) to ensure you desires are carried out upon your death or if you are incapacitated and (2) to avoid probate.
2007-02-09 11:29:05 · answer #2 · answered by cranknbank9 4 · 0⤊ 0⤋
It depends on how it is structrued and for what purpose it was set up. The main benefit are that you decide what you want in advance and put it in writing.
2007-02-09 10:00:25 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋