A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

There are two types of trusts:
1. Living Trust (inter-vivos): A trust that is in effect during the trustor's lifetime.
2. Testamentary Trust: A trust that is created through the will of a deceased person.


For example, a trust can be used if a beneficiary is under age or has a mental disability that impairs the person's ability to maintain his or her own finances. Once the beneficiary is deemed able to manage the funds or assets by the terms dictated under the trust, the beneficiary will receive possession of the trust. The trust is taxed on any funds not distributed to the beneficiary.

  1. Beneficial Interest

    The right to receive benefits on assets held by another party. ...
  2. Clifford Trust

    Clifford Trusts allow grantors to transfer assets that produce ...
  3. Testamentary Trust

    A legal and fiduciary relationship created through explicit instructions ...
  4. Inter-Vivos Trust

    A fiduciary relationship used in estate planning that is created ...
  5. Exemption Trust

    A trust whose purpose is to drastically reduce or eliminate federal ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
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