Trust Legal Meaning and Definition

Here is a simplified definition of the legal term Trust.

Trust (noun)

A trust is a legal arrangement, often set up by a person called the "trustor," who transfers ownership of their assets (such as property or money) to a 'trustee'. The trustee is a dependable individual or organization who is legally obliged to manage these assets for the benefit of others, known as 'beneficiaries'. The trustor may continue to add assets to the trust over time. Trusts often play a vital role in estate planning, helping to manage and distribute a person's wealth according to their wishes.