There are several possible reasons why a trust is made.
A trust is created for privacy. While a trust is similar to a will, one of its differences is that terms stated in a will are made public while those of a trust are not. This is the reason why there are some families who prefer to use trusts, to keep them private from unwanted eyes and ears.
People also make living trusts for spendthrift protection. A lot of people seem to have a hard time budgeting and handling their money, and by putting money in the trust, one can protect him/herself from spending the money in ways not specified in the trust. There are several ways the distribution of money in a trust can be structured, and trustees can disburse the contents of the trust based only on the causes and beneficiaries specified in the trust document.
Living trusts also lend a hand in wills and estate planning. Trusts often appear in wills, as the distribution of property and estate in wills is a form of trust. There are certain parallels as well, such as the Executor of the will similar to the trustee and the children (who are usually the inheritors of the property in a will) are the beneficiaries. Because a trustee helps the beneficiaries during the whole process, having both a will and a living trust secures that your children get everything you intended for them through a trustee.
Another reason for getting a trust is for charitable organizations who must take the form of trusts as stated in most laws; there are other forms but the trust is the most common one a charity can take. Charities are for the benefit of the public. A trust can also be capable of working as an investment vehicle known as the unit trust.
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