Put simply, a trust is a relationship whereby property is held by one party for the benefit of another. A trust is created by a Settlor, also referred to as a Grantor or Maker, who transfers property to a Trustee. The Trustee holds that property for the beneficiaries designated by the Settlor in the trust agreement. You likely enter into trust agreements on a regular basis without realizing it. Imagine, for example, that you must move out of state on short notice and you ask your neighbor to hold onto a box of family heirlooms until your sister can come and get them. In that scenario, you have created a trust agreement wherein you are the Settlor, your neighbor is the Trustee, and your sister is the beneficiary of the trust.
/ / What is a trust?