A trust is a legal entity that is central to a three-part agreement in which an individual — the trust’s "grantor" — transfers the legal title to an asset to that trust for the purpose of benefiting one or more beneficiaries. The trust is managed by one or more trustees. Trusts may be revocable or irrevocable and are sometimes included as part of a will.
The trust’s grantor names a trustee to handle investments and manage trust assets. The grantor can work with the trustee on major decisions, or the trustee can be assigned full authority to act on the grantor’s behalf. Trustees have a responsibility — known as "fiduciary responsibility" — to act in the grantor’s best interest. In some cases, the grantor may serve as trustee.