A trust is a legal arrangement where one party, known as the trustee, holds and manages assets for the benefit of another party, called the beneficiary. Trusts are often used in estate planning to ensure that assets are distributed according to the wishes of the grantor, the person who creates the trust. This arrangement can help avoid probate, reduce taxes, and provide financial support to beneficiaries. There are different types of trusts, such as revocable trusts, which can be changed or canceled by the grantor, and irrevocable trusts, which cannot be altered once established. Trusts can hold various assets, including money, real estate, and investments, providing a structured way to manage and protect wealth for future generations.