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 New York, 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, referred to as the 'res,' will be managed and distributed by the trustee for the benefit of designated beneficiaries, who can be descendants, heirs, or any other persons or entities specified by the trustor. New York law permits the creation of various types of trusts, including self-settled trusts, where the trustor may also be a beneficiary. Trusts in New York are governed by the New York Estates, Powers and Trusts Law (EPTL), which outlines the requirements for creating a valid trust, the duties and powers of trustees, and the rights of beneficiaries. Trusts can serve various purposes, such as estate planning, asset protection, and tax planning, and must be structured in accordance with state law to ensure their validity and effectiveness.