Results for “what is a trust” · retrieved September 22, 2026
A trust is a fiduciary relationship in which a trustee holds and manages assets for the benefit of others.
A trust is a fiduciary relationship where a person or entity (the settlor, grantor, or trustor) transfers assets to a trustee. The trustee holds legal title to these assets and manages them for the benefit of designated beneficiaries. Trusts are used for various purposes, such as controlling and protecting assets, managing inheritance, providing for those unable to handle their own affairs, and potentially achieving tax benefits or avoiding probate. The specific rules and terms governing a trust are typically outlined in a document known as a trust deed.
Answer details
Key Participants
The settlor (or grantor) provides the assets, the trustee manages them, and the beneficiaries receive the benefits.
Common Purposes
Trusts are used to protect assets, manage inheritance, provide for individuals who cannot manage their own affairs, and potentially reduce taxes or avoid probate.
Types of Trusts
Trusts can be categorized in several ways, including living or testamentary, funded or unfunded, and revocable or irrevocable.
Sources 8
About this answertrust | Wex | US Law | LII / Legal Information Institute
A trust is a form of division of property rights and a fiduciary relationship, in which ownership of assets goes to a third party, known as a trustee, and the beneficial enjoyment goes to the beneficiary. The person who transfers the property into the trust is known as the grantor or settlor....A trust is a right, enforceable in equity, to the beneficial enjoyment of property held by another party who actually holds legal title. The property held
Publication date not supplied
What Is a Legal Trust? Common Purposes, Types, and Structures
A legal trust is a financial arrangement where assets are managed by a trustee on behalf of beneficiaries, providing control over distribution and potential tax benefits....- A trust is a fiduciary relationship in which a trustor gives another party, known as a trustee, the right to hold title to property or assets for the benefit of a third party.- While they are generally associated with wealthy people, trusts are highly versatile instruments t
November 25, 2003
Definition of a trust | Internal Revenue Service
In general, a trust is a relationship in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another....A trust is formed under state law. You may wish to consult the law of the state in which the organization is organized. Note that for a trust to qualify under section 501(c)(3) of the Code, its organizing document must contain certain language. Publication 557 PDF contains suggested
June 27, 2026
trust summary | Britannica
trust, In law, a relationship between parties in which one, the trustee or fiduciary, has the power to manage property, and the other, the beneficiary, has the privilege of receiving the benefits from that property. Trusts are used in a variety of contexts, most notably in family settlements and in charitable gifts. The traditional requirements of a trust are a named beneficiary and trustee, an identified property (constituting the principal of t
Publication date not supplied
Trusts | The Law Society
A trust is a legal arrangement for managing assets. There are different types of trusts and they are taxed differently....In a trust, assets are held and managed by one person or people (the trustee) to benefit another person or people (the beneficiary). The person providing the assets is called the settlor....Trusts are set up for a number...reasons, including:...should be used...The trustees are the legal owners of the assets held in a trust. T
Publication date not supplied
TSEM1004 - Introduction to trusts: legal background - trust law: what is a trust? - HMRC internal manual - GOV.UK
TSEM1004 - Introduction to trusts: legal background - trust law: what is a trust? There is no legal definition of ‘trust’. A trust is not a legal person; it is a relationship. The persons in the trust relationship are:- settlor- trustees- beneficiaries...The settlor provides the property for the trust. The trustees hold the trust property in their name, but it is held not for them but on trust for the beneficiaries. The beneficiaries benefit fr
Publication date not supplied
Trusts and taxes: Overview - GOV.UK
A trust is a way of managing assets (money, investments, land or buildings) for people. There are different types of trusts and they are taxed differently....Trusts involve:...- the ‘settlor’ - the person who puts assets into a trust- the ‘trustee’ - the person who manages the trust- the ‘beneficiary’ - the person who benefits from the trust...Trusts are set up for a number of reasons, including:...- to control and protect family assets- when som
January 26, 2012
Trust planning basics | Fidelity Investments
What is a trust?...A trust is a legal arrangement between an owner of assets (the grantor) and another person or institution (the trustee). The grantor places their assets into the trust, which takes ownership of them. The trust is then administered by the trustee under the terms laid out in the trust document for the benefit of one or more individuals, charities, or other entities, called beneficiaries. Importantly, a trust may allow assets
April 27, 2026
Related on this site
This page was prepared by Seeked from live retrieval on September 22, 2026 and is not continuously updated. Run a fresh search for the latest, or to inspect each source.