A Trust is an agreement created by a Grantor that appoints a Trustee to manage and hold assets for the benefit of a Beneficiary. The roles of these three main parties are:

• Grantor: creates and initially funds the trust with assets for the benefit of the beneficiary;
• Trustee: a person who manages the agreement and holds title to assets and carries out its provisions.  The Trustee is a fiduciary and must act in the best interest of all beneficiaries; and
• Beneficiary: Person or entity/charity that benefits from Trust.

A trust greatly expands your options when it comes to managing your assets, whether you're trying to shield your wealth from taxes or pass it on to your children. 

There are many types of Trusts that mainly fall into two very broad categories: 

Revocable vs. irrevocable trusts

People often think of a trust as an alternative to a will — a way of passing on wealth after one's death. However, you can also create trust and pass on assets during your lifetime through a revocable trust.

Also called a living trust, a revocable trust allows you to retain control of the assets during your lifetime, yet can be altered and even dissolved so long as you're alive.

The downside is that while a revocable trust will usually keep your assets out of probate if you were to die, if you have a large estate, you may not be able to escape estate taxes. 

• Revocable Living Trust:  is a legal document created and remains in existence only during a Grantor's life.  It is designed to hold ownership of assets and contains specific instructions for the use and preservation of assets.  Its provisions can be changed at any time during the Grantor's life (thus "revocable").  It typically covers three distinct phases: i) during the Grantor's life; ii) during the Grantor's possible incapacitation, and iii) what happens after the Grantor's death.  At the Grantor's death, all assets properly held in a Revocable Living Trust avoid probate. Because this Trust is fully subject to being revoked or amended during the Grantor's life, this type of Trust does not avoid taxes or provide asset protection. After the Grantor dies, a Revocable Living Trust converts in whole or part to an Irrevocable Trust.
• Irrevocable Trust:  a type of Trust that typically cannot be changed by the Grantor after it is created.  This Trust holds assets outside of the Grantor's estate so it is generally used for asset/creditor protection and to avoid estate and other taxes. There are numerous types of irrevocable trusts depending on the specific needs and concerns of the Grantor and beneficiaries. an irrevocable trust cannot be changed once it has been created and you give up control of your assets that you put into it. But an irrevocable trust has a key advantage in that it can protect beneficiaries from probate and estate taxes. Those setting up an irrevocable trust must also.

Assets held in trust do not go through the probate process saving your loved ones time and money.

Here's how trusts might benefit you, especially in the age of coronavirus.