101 Trusts Trusts are legal entities. That means that they share a a few common characteristics to you and me. Trusts can buy, own, and sell property.
Trusts also have to pay income tax.
Trusts can be set up for a variety of reasons. One common purpose for a trust is to hold funds for a minor child or relative who is physically or mentally handicapped. The trust can hold funds and invest. On a regular basis, the trust can pay an income to a trust beneficiary. The trustee's role is to maintain the trust and make decisions that are in the best interest of the beneficiary of the trust.