In general, a trust is a special type of contract in which one person, called a grantor or settlor, transfers property to another person, called a trustee. The trustee then holds legal title to the property for the benefit of the designated beneficiaries. A trust consists of four components:

• Grantor, or creator of the trust.
• Beneficiaries, persons who receive benefits (income and/or principal) of the trust.
• The assets, or properties included in the trust.
• The trustee, the organization or individual responsible for the trust's assets and distribution of assets in accordance with the terms put forth by the grantor.

A trust can be created while you are alive (an "inter vivos" trust), or it can be created upon your death as specified in a will (a "testamentary" trust). Revocable trusts can be changed or revoked by the grantor. Irrevocable trusts cannot be changed after they are created.