What is a trust?

A trust is an arrangement in which a trustee (similar to a manager) holds title to property for the benefit of the trust beneficiaries. This relationship is governed by a document often called a “trust declaration” or “trust agreement”. The trust declaration or agreement identifies:

• The creators of the trust (aka “settlors”, “grantors” or “trustors”)
• The trustee (manager)
• Beneficiaries
• When and under what conditions the trust property is to be distributed to the beneficiaries
• Rules the trustee must follow when managing the trust property for the beneficiaries

When you transfer title of property from your individual name to the name of the trustee, you no longer own the assets. However, you maintain control over those assets when you are the trustee of your trust. You can be your own trustee, or you can share that role with another person or institution. You can choose to have all or some of your assets in the trust.