Trust is confidence in the honesty or integrity of a person or thing. An example of trust is the belief that someone is being truthful. An example of trust is the hope a parent has when they let their teenager borrow a car.
A trust is a fiduciary 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.
Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also be a type of closed-end fund built as a public limited company.
KEY TAKEAWAYS
A trust is a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party.
While they are generally associated with the idle rich, trusts are highly versatile instruments that can be used for a wide variety of purposes to achieve specific goals.
Each trust falls into six broad categories—living or testamentary, funded or unfunded, revocable or irrevocable.
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Explanation:
Trust is confidence in the honesty or integrity of a person or thing. An example of trust is the belief that someone is being truthful. An example of trust is the hope a parent has when they let their teenager borrow a car.
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Answer:
A trust is a fiduciary 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.
Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also be a type of closed-end fund built as a public limited company.
KEY TAKEAWAYS
A trust is a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party.
While they are generally associated with the idle rich, trusts are highly versatile instruments that can be used for a wide variety of purposes to achieve specific goals.
Each trust falls into six broad categories—living or testamentary, funded or unfunded, revocable or irrevocable.