What is a trust agreement?

A trust agreement is a legal document that creates a trust. It outlines the roles of the trust’s participants and manages the trust’s assets. In California, a trust agreement is created by a Settlor (person creating the trust) who transfers legal ownership of assets to the trust, which is managed by a Trustee (person or institution responsible for the trust) in accordance with the trust’s terms and the laws of California. The trust’s assets are managed for the benefit of a Beneficiary (person who will benefit from the trust’s assets). The trust agreement describes the trust’s purpose and how the trust’s assets will be managed, including the best interests of the beneficiaries and the trustee’s responsibilities and duties. It can also provide information on how the trust’s assets are to be invested, when they are to be distributed, and any provisions for amendments. Depending on the trust’s purpose, the trust agreement can also provide for the trust’s termination or provide for other terms and conditions at the trust’s end. A trust agreement is a legally binding document and must be drafted, executed, and managed in a very specific manner in order for it to be valid under California law. The trust agreement must also be administered in accordance with the trust’s terms and the law of California. It is important to seek the assistance of a qualified lawyer when creating or managing a trust agreement in California.

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