For many people, trusts are a useful way to assist in tax planning and to preserve assets. There are various types of trusts and they can be created during your lifetime or by your will.
Trusts can be used to safeguard your interests if you are buying a house with someone, especially if you are not married. They can also be used to protect your assets from bankruptcy or divorce and, if you have children, to ensure that their inheritance is protected when your estate passes to your surviving spouse. If you are a grandparent, you might use a trust to provide for your grandchildren’s education. Plus, if you are a business owner, there are additional benefits of using trusts to take advantage of special provisions for business assets.