What is a trust?

A trust is a legal entity that owns assets for the benefit of a third person, which can include yourself and/or other beneficiaries. The grantor of the trust is the person who sets up and funds the Trust. The trustee is the person charged with keeping the assets safe and properly invested for ultimate distribution to the beneficiary or beneficiaries at the proper time. The grantor can be very specific as to how the funds of the Trust are held, invested and distributed. The grantor can also place restrictions or conditions as to when a beneficiary receives their interest from the trust, such as requiring the beneficiary to reach a certain age, or reach a certain milestone in their life. The trustee can be the grantor of the trust, a corporate/professional trustee, or just someone the grantor knows and trusts.