Briefly explain what the purpose of the establishment of a trust is and what parties are involved in a trust.
Question: Briefly explain what the purpose of the establishment of a trust is and what parties are involved in a trust.
A trust is a legal arrangement that allows individuals or entities to manage their assets and distribute them to beneficiaries. It involves three key parties:
1. Grantor (Settlor/Creator): The grantor creates the trust and transfers assets into it. They can place various types of assets, such as real estate, vehicles, investments, and personal property. The grantor also selects specific beneficiaries who will benefit from the trust.
2. Trustee: The trustee manages the trust assets according to its instructions. They oversee and administer the trust, ensuring its proper functioning.
3. Beneficiaries: Beneficiaries receive the trust assets based on the terms set forth in the trust agreement. Essentially, a trust provides legal protection for assets and ensures their distribution according to the grantor's wishes.
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