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. The person who creates the trust is known as the grantor or settlor. Trusts can be used for various purposes, such as estate planning, protecting assets, or managing funds for minors. There are different types of trusts, including revocable trusts, which can be changed or canceled by the grantor, and irrevocable trusts, which cannot be altered once established. Trusts help ensure that assets are distributed according to the grantor's wishes and can provide tax benefits and privacy.