What are trusts and when were they invented?

Trusts were first invented in the 12 century during the Crusades

Crusaders leaving their lands needed someone who could watch over the place while they were gone. This trustee would collect payments due and generally manage things, and sometimes not want to give the land back...Fast forward to today.

Say that you have young kids who you want to get all your assets should you pass away, but you don't want your 10-year-old to spend all the money on cotton candy machines and building their own personal arcade.

So you set up a trust, where you, the trustor, will allow someone you trust, the trustee, to hold and manage the assets for the benefit of your kids, the beneficiaries. Not every trust looks like this, but this is one type. Come back next week for more on trusts.

Sources:

https://www.investopedia.com/terms/t/trust.asp

https://en.wikipedia.org/wiki/History_of_equity_and_trusts

https://www.osbar.org/public/legalinfo/1119_WhatIsATrust.htm