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- A trust is a fiduciary relationship where a trustor gives a trustee the right to hold title to property or assets for the benefit of a third party12. Here's how a trust functions:
- The trustor creates a trust agreement to describe how assets should be managed.
- The trustee manages the assets in the trust fund.
- The beneficiary receives the assets according to the terms of the trust.
- Trusts can be either revocable or irrevocable2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Key Takeaways
- A trust is a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party.
www.investopedia.com/terms/t/trust.asp- A trust allows a third party—called a trustee—to manage assets in a trust fund on behalf of a beneficiary, which is the party who receives the assets.
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