A trust is a legal entity created by a person known as the trustor, grantor, or settlor who owns assets (cash, stocks, bonds, real estate, art, jewelry, machinery, etc.) and transfers ownership of the assets to the trust—while directing a person or entity known as the trustee to hold and manage the assets for the benefit of a certain person or persons, or classification of persons (descendants) known as the beneficiary or beneficiaries. The assets or property in a trust are sometimes referred to by the Latin word res (pronounced “rays”).

Beneficiaries are often descendants or heirs of the trustor, grantor, or settlor, but in some states (and other countries) the trustor, grantor, or settlor may be the beneficiary—and in that case the trust is known as a self-settled trust.

A trust is generally created when a trustor, grantor, or settlor shows or manifests an intent to create a trust by signing or executing a written trust agreement that is also signed by the trustee.

In California, a trust is a fiduciary arrangement where a trustor (also known as a grantor or settlor) transfers assets to a trust, appointing a trustee to manage the assets for the benefit of designated beneficiaries. The trust is established through a written trust agreement, which must be signed by both the trustor and the trustee, demonstrating the trustor's intent to create the trust. This agreement outlines the terms under which the assets, referred to as the 'res,' will be held and managed. Beneficiaries can include descendants, heirs, or even the trustor themselves in the case of a self-settled trust. California law governs the creation, administration, and termination of trusts within the state, and these laws are codified in the California Probate Code. Trusts can be used for various purposes, including estate planning, asset protection, and tax planning, and they can be revocable or irrevocable, with different legal implications for each.