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 Louisiana, trusts are governed by the Louisiana Trust Code, which outlines the rules and procedures for creating and managing trusts. A trust is established when a settlor (also known as a trustor or grantor) expresses the intent to create a trust and transfers assets to a trustee, who holds and manages the property for the benefit of designated beneficiaries. The trust agreement must be in writing and signed by both the settlor and the trustee. Beneficiaries can include descendants, heirs, or any other persons or classifications of persons as specified by the settlor. Louisiana law also permits the creation of self-settled trusts, where the settlor is also a beneficiary of the trust. However, it's important to note that self-settled trusts may have certain limitations and may not provide the same level of asset protection as other types of trusts. It is advisable for individuals considering the creation of a trust in Louisiana to consult with an attorney to ensure compliance with state laws and to tailor the trust to their specific needs and intentions.