Trust Property

Definition of 'Trust Property'


Assets that have been placed into a fiduciary relationship between a trustor and trustee for a beneficiary. Trust property may include any type of asset, such as cash, securities, real estate or life insurance policies.

Also be called "trust assets", "principal" or "trust corpus".

Investopedia explains 'Trust Property'


Trusts are an estate planning tool used to facilitate the transfer of assets and to reduce tax liability. Some trusts can also protect assets in the event of a bankruptcy or lawsuit. Trusts help to preserve the full value of assets and ensure that those assets are distributed to their intended recipients. The trustee is required to manage the trust property in accordance with the trustor's wishes, the beneficiary's best interests and the rules of the specific type of trust that has been established.


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