What is a trust?

Question

In relation to economics. please explain as clearly as possible.

Answer 1

A legal title to property held by one party for the benefit of another or the confidence reposed in a trustee when giving the trustee legal title to property to administer for that person , together with the trustee's obligation regarding that property and the beneficiary. In away its almost like a saving s account that's being overseen by someone else (but thats only in a way not completly)

Some common reasons for setting up a trust include:

To provide for minor children or family members who lack financial experience or who are unable to manage their assets

To provide for management of your assets should you become unable to oversee them yourself

To avoid probate and transfer your assets immediately to your beneficiaries upon death

To reduce estate taxes or provide liquid assets to help pay for them.