A. 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 a benefit of third party (the beneficiary).
Four main types of trust are:
1. Living : trust created by 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.
B. Property interest held by a party ( the trustee) for the benefit of another (the beneficiary).