What is a trust?

A trust is a legal way of managing assets, such as money and property, on behalf of another person or group of people. In California, trusts are created by someone (known as the settlor or grantor) who transfers assets to a trustee. The trustee then holds these assets on behalf of a beneficiary (or beneficiaries). The job of the trustee is to manage the assets in the trust according to the wishes of the settlor or grantor, which are laid out in the trust document. Trusts can be used for a variety of purposes, such as providing for a minor’s future needs, avoiding probate, minimizing estate taxes, and managing assets for individuals who have become mentally incapacitated. In many cases, trusts can be used to protect assets from creditors, as well. Trusts can also be set up to benefit charities, religious organizations, and other non-profit entities. Trusts are created under trust and estate law, which is a specialized area of law that deals with the rights and responsibilities of individuals and organizations that manage assets on behalf of beneficiaries. In California, trusts and estates law are governed by the California Probate Code. As such, a person who wishes to establish a trust in California must be familiar with the state’s laws governing trust and estate law.

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What is a trust?

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