Trust Education Library
What is a trust?
The essential roles
Settlor / Grantor
The person or entity establishing and funding the trust.
Trustee
The individual or organization responsible for administering trust property according to the governing document and applicable law.
Beneficiary
The person or organization that may receive benefits from the trust.
Trust Property
Assets legally transferred into or otherwise held under the trust arrangement.
How assets move through a trust
Core concepts
Legal title vs. beneficial interest
The trustee typically holds legal title; beneficiaries hold equitable or beneficial interests defined by the trust terms.
Fiduciary duties
Trustees generally owe duties of loyalty, prudence, impartiality, and to inform and account.
Revocable vs. irrevocable
Revocable trusts can generally be changed by the grantor; irrevocable trusts generally cannot, subject to state modification tools.
Agreements and declarations
A trust agreement is between grantor and trustee; a declaration is made when the grantor names themselves trustee.
Trust funding
A trust only governs property actually transferred to it — signing a document does not move or create money.
Distributions
Mandatory, discretionary, or standard-based (e.g., health, education, maintenance, support).
Trustee responsibilities
Recordkeeping, investing prudently, filing taxes, communicating with beneficiaries.
Termination
Trusts end per their terms, upon purpose fulfillment, or by court or agreement where allowed.
State-law differences
Many states adopt the Uniform Trust Code with variations; others follow distinct statutes.
Federal and state taxes
Classification (grantor vs. non-grantor) determines who reports income; states tax trusts differently.
Next step
Move from understanding to a properly reviewed plan.
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