Legal entity created by a party (the trustor) through which a second party (the trustee) holds the right to manage the trustor’s assets or property for the benefit of a third party (the beneficiary).
The four main types of trusts are:
(1) Living: trust created by the trustor while he or she is alive.
(2) Testamentary: trust established through a will and which comes into effect (is created) when the trustor dies.
(3) Revocable: trust that can be modified or terminated by the trustor after its creation.
(4) Irrevocable: trust that cannot be modified or terminated by the trustor after its creation.