Who benefits from a trust established in estate planning?

A trust established in estate planning primarily benefits the intended beneficiaries designated within the trust. When an individual, known as the grantor or settlor, creates a trust, they specify who will receive the trust assets and under what conditions. The beneficiaries can be family members, friends, charities, or other designated individuals or entities.

This structure allows the grantor to manage and protect their assets during their lifetime and dictate how those assets should be distributed after death. By doing so, the grantor often aims to achieve specific goals, such as minimizing estate taxes, avoiding probate, or providing for dependents in a controlled manner. The focus on the beneficiaries ensures that the assets are used according to the grantor's wishes and can also help provide support or financial security for those designated.

While there are different considerations regarding tax implications and the role of the grantor or estate, the primary benefit of a trust is to provide for the individuals or entities named as beneficiaries. The other options do not accurately represent the primary purpose of a trust in estate planning, which is the benefit of the designated individuals rather than the grantor, the estate, or tax-related benefits to the government.