I wish that financial education was taught in public schools. What is a trust, what are some benefits, and who is it a good option for?
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A trust is a set of cash/assets managed by a person or persons (trustees) for the benefit of a person or persons (beneficiaries), with instructions about how those assets are supposed to be managed by the trustees.
For example, if you want to bequeath cash to a minor, but you don’t think that person is sufficiently mature or responsible yet, or maybe you’re afraid that the minor’s guardians will take the money if you simply give it to the minor, you could set up a trust with instructions that the minor be paid over time, or after the age of 18, etc.
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