Is a trust the same as a corporation, LLC or partnership? No!! It’s a completely different animal.
A trust is merely a contract between two parties. One party to the contract transfers property to the other, who is known as the “trustee.” The written trust agreement spells out what the trustee is supposed to do with the property. The trust agreement should also contain a slate of successor trustees who will serve if the original trustee resigns or is unable to serve.
For example, I might transfer $1,000 to my wife, as trustee, pursuant to an agreement stating that she is to manage and distribute the funds for the benefit of my child until he reaches 21. Or, if I am setting up my own “living trust” or “revocable trust,” I might transfer property to myself, as trustee, pursuant to a trust agreement with instructions on how the trustee should manage and distribute the property for my benefit during my life, and to my family members after my death.
As the name suggests, don’t choose a trustee you don’t trust…..