The benefit of making a trust rather than an outright gift

There are several reasons why you would want to make a trust, here I have listed some reasons why creating a trust would be more beneficial rather than making an outright gift of the property to the beneficiary.

1) The beneficiary may not be able to manage the property either because of age or infirmity, and by having a trustee manage the assets, the trustor would be left assured that property will produce an income for the beneficiary.

2) The Trust can be multi-generational, The trust can make sure that the trust property still exist for several generations, and not spent by the first generation.

3) By placing a trust during a person's lifetime, that property is considered owned by the person at death and therefore is not taxable or subject to the claims of intestate heirs.

4) If the trustor normally provides support for a dependent, then by placing property in a trust that produces income that the trustor typically provides to the dependent, he will have shifted the income tax burden to the trust and the beneficiaries, which may have more advantages, tax-wise, than paying for taxes on the income.