A trust may seem a tool for the idle rich (the pejorative “trust fund baby” is still around) but it’s also a flexible vehicle for protecting assets and directing them into the right hands. Trusts can save money on taxes and spare loved ones from the hassle—and expense—of probate.

A trust is a fiduciary relationship between one party—called the Grantor, Trustee or Settlor—and another party who holds title to property—the Beneficiary. The terms of the trust are set out in a written document, which can be amended as needed. The Grantor, Trustee and Beneficiary can be the same person or different people acting in different roles.

The trustee’s duties are to manage the assets of the trust in accordance with the terms of the trust and relevant law. Trustees must be open, transparent and accountable to beneficiaries. They must keep records, report income and expenses, and not engage in risky speculation on the assets of the trust. They must be able to account for the trust assets and be willing to surrender profits to the beneficiaries when appropriate. They must also not dissipate the trust’s funds or otherwise waste the assets, unless permitted by the terms of the trust and relevant law.

There are many types of trusts, and the right one for you depends on your goals. An attorney can help you decide which type of trust is best for your situation and assist in drafting the document. In addition, an attorney can work with your other advisors to coordinate the right type of trust for your needs.

Trusts can be either revocable or irrevocable, and the choice of which to use depends on your circumstances. Typically, you can change a revocable living trust during your lifetime but you cannot cancel an irrevocable trust once it is created. Revocable trusts are more commonly used, but some individuals find that irrevocable trusts can offer some benefits.

For example, an incentive trust uses distributions from income or principal to encourage or discourage specific behaviors on the part of the beneficiary. A special needs trust supports beneficiaries with functional disabilities without jeopardizing their ability to qualify for government assistance programs. A trust can also avoid some estate and gift taxes by freezing the value of an asset at the time of its creation.

Setting up a trust is more complicated and takes longer than drafting a will, but it can provide peace of mind that your wishes are carried out properly. If you’re considering a trust, talk to an experienced estate planning attorney and your financial and tax advisors. They can provide guidance on minimizing taxes, protecting your assets and coordinating with other professionals.