A trust is a fiduciary arrangement that allows a third party -- the trustee -- to hold assets on behalf of beneficiaries, and lays out how and when those assets are to be distributed. They can be indispensable instruments in wealth management and financial planning.

Trusts come in many flavors. The main types are revocable trusts and irrevocable trusts. They certainly share common features -- both will keep your assets out of probate (wills don't do that) -- but each has unique characteristics, advantages, and drawbacks.

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Source Fool.com