Giving in trust refers to the act of transferring or entrusting one's property, assets, or responsibilities to another party, known as the trustee, for the purpose of managing them and benefiting a specified individual or group, known as the beneficiary. This legal arrangement is governed by a trust agreement or a trust deed.
In such an arrangement, the person who establishes the trust, also known as the settlor or grantor, relinquishes ownership and control of the assets held within the trust to the trustee. The trustee, who is typically an individual or a professional entity such as a bank or a law firm, is responsible for managing and administering the trust assets in accordance with the terms and instructions specified in the trust agreement.
The primary objective of giving in trust is to protect and preserve the assets or property for the benefit of the designated beneficiaries. The trust agreement outlines the specific conditions and purposes for which the assets are to be managed by the trustee, such as providing financial support to beneficiaries, paying for education or medical expenses, or maintaining an estate for future generations.
Giving in trust also offers potential advantages in terms of minimizing estate taxes and providing professional management of assets. Additionally, it allows for privacy and confidentiality since trust documents are usually not made public like a will.
Overall, giving in trust is a legal mechanism that enables individuals to safeguard their assets while ensuring that their intended beneficiaries are cared for in accordance with their wishes.
