Trusts are useful in many situations such as planning for incapacity, controlling distribution of assets after death, and tax planning. What makes trusts unique are their versatility. At times trusts must restrictive, but trusts generally are only as restrictive as you imagination. For example, if you wish to provide income to children or others but fear the assets if given to them outright would be squandered, a trust can limit how the assets are spent and even protect those assets from creditors.
Trusts are flexible and come in many forms, such as irrevocable or revocable or inter vivos or testamentary. Common uses for a trust include:
- tax saving strategies
- protect assets from creditors
- benefit charities
- preservation of assets
- managing of the assets for minors