What is the purpose of a trust?

The purpose of a trust is primarily to own property for designated purposes as determined by the trust's creator, also known as the grantor or settlor. A trust is a legal arrangement where the grantor transfers assets to a trustee, who then manages those assets on behalf of beneficiaries according to the specific terms set forth in the trust document. This arrangement allows for a variety of objectives such as estate planning, asset protection, and facilitating charitable giving, all tailored to the grantor’s intentions.

Trusts can hold various types of property, including real estate, financial assets, and personal items, and can be configured to achieve specific goals—like providing for minors, managing assets during incapacity, or ensuring that assets are distributed according to particular wishes after the grantor's death. The versatility of trusts is what makes them a vital tool in financial and estate planning, as they provide a structured approach to asset management and distribution.

The other options, while related to the broader concept of trusts or financial arrangements, do not encompass the full breadth of a trust's purpose. For example, while a trust may manage personal property, that is not its exclusive function. Additionally, trusts can provide support to individuals, but they are not limited to that role. Trust