What Is a Sarah Trust?
A Sarah Trust is a type of trust arrangement used in estate planning to manage and protect assets for designated beneficiaries. It is often structured to provide financial security while allowing the grantor to control how funds are distributed.
How Does a Sarah Trust Work?
The grantor transfers assets into the trust, which are then managed by a trustee according to the trust agreement. Beneficiaries receive distributions based on the terms set by the grantor, which can include conditions related to age, education, or financial milestones.
Benefits and Considerations
Common benefits include asset protection, potential tax advantages, and avoiding probate. However, legal requirements vary by jurisdiction, so individuals should consult qualified professionals before establishing a trust.
For general information on trust structures, visit Cornell Law School Trust Overview.
