What is a Trust? In short, a trust is a contract that governs how assets are to be managed and when cash or assets may be distributed. A trust must contain 3 main elements: 1) a grantor (or trustator) the person(s) or entity that puts assets into the trust, 2)a trustee – the person or entity that makes sure trust assets are managed in accordance with the grantor’s wishes, 3) beneficiaries – the people or entities that receive benefit from the assets of the trust after it has been formed.
The trust is the arrangement through which the grantor creates a trust, to be managed by the trustee, for the benefit of the beneficiaries.
Now this is a very simple discussion of what is a trust, in reality there are many different types of trusts that can be formed for many different purposes.
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as legal advice. This content is not provided by a law firm, and the author is not a legal professional. Laws and regulations vary by jurisdiction, and the application of laws to specific circumstances can vary widely. If you have specific legal questions or concerns, it is recommended that you consult with a qualified legal professional for advice tailored to your situation. The use of this information does not create an attorney-client relationship between the reader and the author.
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