A trust can be described as a vehicle designed to manage assets for the benefit of others. A trustee administers the trust for the benefit of the beneficiaries, on behalf of the trust’s grantor. There are many reasons to use trusts; some are detailed below. As one example, people often use trusts when their beneficiaries are not suited to hold the assets outright: they may be too young, financially unsophisticated or in need of protection from their creditors. A trust also may help achieve income tax and estate tax benefits. In general, trusts provide a way for financially successful individuals and organizations to ensure the long-term performance of their investments, and extend the benefits of those investments to their intended beneficiaries for generations to come.

Trusts can achieve many benefits, including:

• Protecting a beneficiary from creditors
• Reducing estate or income taxes
• Caring for different individuals according to their specific needs
• Balancing the needs of current and future generations
• Providing a mechanism to manage and use an individual’s own assets for his own benefit if he becomes disabled, through the use of a “living” trust