Trusts are legal entities created to pass benefits from one person to another with the help of a third party or person. Trusts require three roles – the first party or asset owner called a trustor or settlor will transfer the asset or property to the second party called the trustee and provide directions in a trust agreement to benefit the third party called the beneficiary. Essentially, the trustor is trusting the trustee to carry out the trustor’s desires in benefitting the beneficiary.
As the one selected to act as the Trustee, someone has put a lot of trust in you to help them fulfill their wishes.
The trustor gives up legal ownership of the assets held in trust and the trustee becomes the legal owner of those assets, holding those assets on behalf of a beneficiary or beneficiaries. The beneficiary is the equitable owner of the trust property.
The trust document serves as the instructions for the trustee on how to manage and control those assets placed in trust. It should describe what the trustee is supposed to give the beneficiary and when.