What does a trust do in property management?

The role of a trust in property management is primarily to transfer control of assets from a grantor to a trustee. This mechanism allows the trustee to manage the property or assets according to the terms set forth by the grantor. When a trust is established, the grantor places their property into the trust, granting the trustee the responsibility to manage that property for the benefit of the beneficiaries named in the trust. This arrangement can provide various advantages, including effective management, protection of assets, and ensuring that the property is used in accordance with the grantor's wishes.

This concept is foundational in estate planning and property management because it establishes a legal framework that separates control from ownership, which can be beneficial in various circumstances such as incapacity, death, or managing estates for minors or individuals who may not be capable of managing their own affairs. The trustee is held accountable to the beneficiaries, which adds a layer of oversight in the management of the property.

While there may be other benefits to trusts, such as potential tax advantages or facilitating shared ownership, the primary function relates to the transfer of control and management of the assets from the grantor to a trustee.