Trust Property

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Definition of 'Trust Property'

A trust property is a legal entity that holds assets for the benefit of another person or entity. The trust property is created by a settlor, who transfers ownership of assets to the trustee. The trustee then manages the assets for the benefit of the beneficiary.

There are many different types of trust properties, each with its own set of rules and regulations. Some of the most common types of trust properties include:

* Revocable trusts: These trusts can be changed or revoked by the settlor at any time.
* Irrevocable trusts: These trusts cannot be changed or revoked by the settlor.
* Testamentary trusts: These trusts are created in a will and come into effect after the settlor's death.
* Living trusts: These trusts are created during the settlor's lifetime and can be used to manage assets and provide for beneficiaries.

Trust properties can be used for a variety of purposes, including:

* Estate planning: Trusts can be used to avoid probate, reduce taxes, and provide for beneficiaries in a way that meets the settlor's specific needs.
* Asset protection: Trusts can be used to protect assets from creditors, lawsuits, and divorce.
* Charitable giving: Trusts can be used to make charitable donations.
* Business succession planning: Trusts can be used to provide for the smooth transition of a business to the next generation of owners.

Trust properties can be a complex and sophisticated financial tool. It is important to work with an experienced attorney or financial advisor before creating a trust property.

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