A trust is an arrangement whereby property is held by one party for the benefit of another. The property may be transferred to another person, or the property may continue to be held by the Settlor after declaring it to be held in trust. The person creating the trust is called the “GRANTOR”, “SETTLOR” or “TRUSTOR.” The person holding the property for the other is called “TRUSTEE.” The Settlor may also be a trustee of the trust he has created. If so, the trustees are known as “CO-TRUSTEES.” The instrument creating the trust tells the trustee how he is to manage the property being held, and what to do with the property upon the happening of specified events or upon the occurrence of specified conditions.
A trust created in a will is known as a “TESTAMENTARY TRUST.” A trust created while the Settlor is living is known as a “LIVING TRUST” or “INTERVIVOS TRUST.”