In the context of property, what is a Trust?

A Trust is a legal arrangement designed to manage assets for the benefit of individuals or entities. In this context, the title of the property is held by a trustee—someone legally appointed to manage the asset—on behalf of the beneficiaries, who are the individuals or entities that will ultimately benefit from the trust. This arrangement allows for the property to be managed according to the wishes of the person who created the trust, often providing benefits such as asset protection, privacy, and the ability to avoid probate when the property owner passes away.

Trusts can be particularly advantageous for estate planning, as they help ensure that property is distributed according to the owner's wishes without the need for court involvement. This can also help minimize taxes and protect assets from creditors. A trust’s structure is distinct from other arrangements, such as partnerships or shared ownership models, which do not offer the same level of direct management or benefit allocation tied to a legal framework specifically designed to safeguard the interests of beneficiaries.