Some of the disadvantages of a trust in finance terms are.
Shifting assets into a revocable trust won't save income or estate taxes.
No asset protection.
Although assets held in an irrevocable trust are generally beyond the reach of creditors, that's not true with a revocable trust.
A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.
Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.
In financial terms a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
Putting a house in trust means that when the owner of the house dies or becomes too ill and needs to be put into a nursing home then the house transfers to the person that they put the house into trust for.
For example if your parents signed you as a name on the house when it was put into trust then the house ownership would transfer to you upon your parents death.
Or when they go into a nursing home.
Then you can either sell the house or keep the house.
Trust property refers to the assets placed into a trust, which are controlled by the trustee on behalf of the trustor's beneficiaries.
Estate planning allows for trust property to pass directly to the designated beneficiaries upon the trustor's death without probate.
A trust is a legal entity that allows property to be passed from the person who created the trust (the grantor) to the person they want to pass their property to (the beneficiary).
Trustee –this is the person who owns the assets in the trust.
They have the same powers a person would have to buy, sell and invest their own property.
It's the trustee's job to run the trust and manage the trust property responsibly.
Beneficiary – this is the person who the trust is set up for.
Even with a mortgage on the home you may always place your home, even while there is a mortgage on it, in a revocable living trust.
Remember that a revocable living trust is an estate planning tool.