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 Indiana, a trust is established when an individual (trustor, grantor, or settlor) expresses the intention to create a trust, typically through the execution of a written trust agreement, which must also be signed by the trustee. The trust agreement details how the trustor's assets, which can include a wide range of property such as cash, stocks, real estate, and personal items, are to be managed and distributed by the trustee. The trustee holds legal title to the trust assets and manages them for the benefit of the beneficiaries, who may be descendants, heirs, or even the trustor themselves in the case of a self-settled trust. Indiana trust law is governed by the Indiana Trust Code, which is found in Title 30, Article 4 of the Indiana Code. This code sets forth the requirements for creating a trust, the duties and powers of trustees, and the rights of beneficiaries, among other provisions. Trusts can be used for various purposes, including estate planning, asset protection, and charitable giving, and they can be revocable or irrevocable, with different legal and tax implications for each.