+34 @Content-Two-9834 You're gonna wanna talk to a lawyer, "trust" me 🙂

+14 @Eschatonbreakfast All a trust is in an ownership structure involving three parties, a grantor, a trustee, and a beneficiary. The grantor gives whatever property to a trustee who manages the property and holds it for the benefit of the beneficiary. Whether and at what point gift or estate taxes are owed depends on how much control the grantor retains over the property in the trust and/or when full ownership vests in a beneficiary. The trustee could be literally anybody, including you. But you would probably pay a professional trust management company. If trust income is distributed to a beneficiary, the beneficiary will owe regular income taxes on that distribution at the same marginal rates they pay on everything. If it stays in the trust, the trust will pay those income taxes with untaxed income becoming part of the principal. Capital gains are usually taxed at the trust level, and untaxed capital gains become part of the trust principal. Beneficiaries do not pay income taxes on distributions of principal, but there could be gift tax implications if gift or estate tax has not been paid yet. Typically beneficiaries do not have an interest in the trust itself they could use as collateral for a loan. However, as with just about everything else, that really comes down to how you set up the trust. You would define distribution periods, you would name beneficiaries, and how each receives payment distributions.