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 Delaware, a trust is recognized as a legal entity that is established when an individual, known as the trustor, grantor, or settlor, transfers ownership of their assets into the trust and appoints a trustee to manage these assets for the benefit of designated beneficiaries. The trust is created through the execution of a written trust agreement, which must be signed by both the trustor and the trustee. Delaware is known for its favorable trust laws, including the allowance of self-settled trusts, where the trustor can also be a beneficiary. This type of trust is often used for asset protection purposes. Delaware trusts can provide benefits such as privacy, tax advantages, and the potential to avoid probate. The state's laws are designed to be flexible, allowing for a variety of trust structures to suit different estate planning goals. It is important to consult with an attorney to ensure that a trust is properly established and administered in accordance with Delaware law and to fully understand the implications for estate and tax planning.