A trust is a legal entity, much like a corporation or partnership. A person creates a trust by transferring property to a trustee for the benefit of a third person. The trustee manages the property for the beneficiary in accordance with the terms of the trust document. The trustee has legal ownership of the property, while the beneficiary has beneficial ownership.
Below are some of the basic trust components and concepts, divided into three sections:
Note: Trusts and their goals can be complex. I assembled this information as a general outline of some of the issues involved in trusts. You should consult and attorney and tax advisor to makes sure you meet your goals.