A trust is a legal arrangement in which one person (the trustee) manages assets for the benefit of another person (the beneficiary).
Many people use revocable living trusts as part of their estate plan because they can:
• Simplify the transfer of assets after death
• Provide ongoing management of assets for children or other beneficiaries
• Allow assets to be distributed over time rather than all at once
Trusts are not only for wealthy families. In many situations, they are simply a practical way to organize and manage assets.