What is the primary purpose of a trust in estate planning?

The primary purpose of a trust in estate planning is to manage and distribute assets according to the grantor's instructions. This allows the grantor to specify not only who receives the assets but also when and how they will be distributed, thus providing a level of control and flexibility that other estate planning tools may not offer.

Trusts can be tailored to meet specific needs, ensuring that assets are protected and managed in a way that aligns with the grantor's wishes. For example, a trust can include stipulations regarding the age at which beneficiaries receive their inheritance, conditions for distribution based on specific milestones, or even rules about how the assets are to be used.

While other options touch on various aspects of estate planning, they do not capture the full scope of a trust's primary role. A trust is much more than just a temporary holding of assets or a tool solely for tax reduction; it’s fundamentally about the structured management and distribution of wealth over time.