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 North Dakota, a trust is established when an individual (trustor, grantor, or settlor) expresses the intention to create a trust, typically through a written trust agreement, which must be signed by both the trustor and the trustee. The trust agreement outlines how the trust's assets, or 'res,' are to be managed and distributed to the beneficiaries, who can be descendants, heirs, or any designated persons or classes of persons. North Dakota law allows for the creation of self-settled trusts, where the trustor can also be a beneficiary. This is subject to specific provisions and limitations under state law. Trusts in North Dakota are governed by the North Dakota Century Code, which includes statutes that address the creation, management, and termination of trusts, as well as the duties and powers of trustees and the rights of beneficiaries. It is important for trustors to comply with these legal requirements to ensure that the trust operates as intended and provides the desired benefits to the beneficiaries.