What Is a Trust?
A trust is a legal contract in which a person (called the trustor) transfers assets, rights, or money to a financial institution (the trustee) to manage or dispose of them for the benefit of a third party (the beneficiary), according to the instructions outlined in the trust agreement.
In simple terms, it’s a legal and financial tool used to manage, protect, and allocate your resources, under the supervision of an authorized institution (usually a bank).
What Is a Trust Used For?
Trusts serve a wide range of purposes. The most common include:
Asset protection: ideal for shielding assets from lawsuits, debts, or family disputes.
Estate planning: allows you to define how and when your estate will be transferred to heirs.
Business or fund management: useful for handling investments, rental income, or specific funds.
Real estate and construction projects.
Social or philanthropic purposes: such as educational or healthcare trusts.
How Does a Trust Work?
There are three main parties involved:
Trustor: the person who provides the assets or resources.
Trustee: the institution that manages the trust (e.g., a bank).
Beneficiary: the individual, company, or cause that benefits from the trust.
Everything related to the assets — how they’re managed, for how long, and under what conditions — is established at the beginning of the contract.
Benefits of Using a Trust
Protects your assets from legal claims, divorce, or family conflict.
Avoids lengthy probate processes: assets can be passed on without going through a will or court.
Enables professional and transparent fund management.
Offers legal certainty for all parties involved.
Adapts to personal, business, or philanthropic goals.
Most Common Types of Trusts
Asset protection trust: to shield personal or family property.
Real estate trust: for construction or property income management.
Testamentary or estate trust: as a structured inheritance planning tool.
Investment trust: to manage investment portfolios or funds.
Educational or healthcare trusts: to finance specific expenses for an individual or group.
When Should You Consider Creating a Trust?
If you want to protect your assets or your family’s wealth.
If you have business partners or heirs and want to avoid conflicts.
If you need structure and legal security for an investment or project.
If you want to ensure someone else's financial future.
Conclusion
A trust is one of the most versatile and secure tools in legal and financial planning. Whether you want to protect your assets, plan your legacy, or structure a project, a trust offers clarity, transparency, and legal protection.
At Integranovo, we create customized trusts tailored to your specific needs. From asset protection to real estate trusts, we guide you every step of the way. Contact us for more information.
