A trust is a flexible estate planning tool by which a person (or bank, called the “trustee”) owns and manages the assets of one person (sometimes called the “Settlor” or “Grantor”) for the benefit of another person (the “Beneficiary”).
Trusts have a variety of purposes. In some cases, they are used to provide money management to a person unable to effectively manage finances. In other cases, the principal purpose of a trust may be to minimize estate or gift taxes. Common types of trust that are useful tools when planning for incapacity include testamentary living (or inter vivos), discretionary, luxury, sprinkling, and life insurance.
Because the laws governing trusts are complex, require thorough investigation and careful drafting, you should consult with an attorney before establishing a trust.
South Carolina Senior Citizens’ Handbook - A Guide to Laws and Programs Affecting Senior Citizens South Carolina Bar Public Services Division and the Lieutenant Governor’s Office on Aging