A Trust is a legal arrangement. A trust with governing terms is drafted. Assets are transferred to the trustee(s) to hold and manage the assets for the benefit of the beneficiaries according to instructions that are given in a trust document. There are many types or and uses for trusts. Trusts are usually set up to hold assets for the benefit of a minor or a person with disabilities (or the inability to manage assets prudently), to avoid taxes, to provide income to beneficiaries while preserving principal for future generations, to the asset management desired by the person setting up the trust, to provide privacy and peace of mind, to avoid creditors and to avoid probate.
Trusts may be created during lifetime (a living trust a/k/a inter vivos trust) or in a will (a testamentary trust). Some trusts are irrevocable, meaning they cannot be changed or modified without following certain statutes or procedures. Other trusts are revocable or modifiable as provided in the trust agreement.
For larger estates, we have experience in using sophisticated tax oriented strategies allowed by the Internal Revenue Service. We often use specialized trusts and entities to accomplish this goal.