What is a Trust?

A trust in legal terms is an arrangement where a grantor or settlor gives property or an asset over to someone else to take care of and hold. The property being held is known as the principal, while the steward managing it is known as the trustee. Anyone who derives benefit from the managed asset(s) held by the trustee is called a beneficiary. In some cases, the grantor is also the beneficiary, while in others, the beneficiary (or beneficiaries) is a separate person(s).