What Is a Trust?

A trust is a legal entity that holds assets for the benefit of others. It is often used in addition to a will as part of an estate plan to minimize fees and taxes for loved ones, keep valuables safe from family members who might try to sell or spend them, or to support charitable causes. A revocable trust can also be flexible and adapt to life’s changes, allowing beneficiaries to receive distributions when they are able and in line with their best interests.

A Trust is the process of transferring ownership of property to another party (usually a trustee). The trustee manages and distributes the assets according to the instructions of the grantor, usually in accordance with state law. It may also protect the trust assets from creditors or other claimants. Trusts can be established for individuals, businesses or charities. Oftentimes, trusts are used to hold collectibles like artwork and rare coins or even vehicles or real estate for future generations. They are also useful for preserving and protecting a family’s heritage by avoiding estate and inheritance taxes.

There is little settled agreement in philosophy about trust, but there are a few things that most philosophers agree on. One is that trust is risky because it makes us vulnerable to betrayal by the person to whom we have trusted. Another is that for trust to be warranted—that is, in a sense plausibly trustworthy—it must either be justified or well-grounded.

Most of the time, however, people are not aware that they are vulnerable to betrayal by someone they have trusted. They simply feel that the person is capable of betraying them, and they are unable to prove otherwise. In some cases, this can lead to a feeling of distrust in other people or in society as a whole.

In terms of the value of trust, many philosophers think that it is intrinsically worthwhile because it reflects a desire to respect other people. Others, such as Meena Krishnamurthy (2015), offer a more narrow, normative account of trust in the context of political democracy and the motivation to resist tyranny.

If you are considering creating a trust, it’s important to seek professional advice from an experienced financial advisor or estate planning attorney to make sure that your plan meets all of the requirements necessary for establishing a legally binding document. You should also consult a tax expert to determine if a trust is right for you. It is possible to avoid probate, a complicated and time-consuming court process that must be completed in order to settle an estate, by setting up a revocable trust. This is a great option for anyone who wants to minimize the expenses and hassle of estate settlement for their family members, and it can be especially helpful for people with complex assets or heirs who may need assistance in settling their estate. Trusts can also help to protect certain valuable collections from being sold off during the course of a legal dispute or from family members who might try to take them by force.