43. What is a trust?

A trustAn arrangement in which property interests are legally held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). is an arrangement in which property interests are legally held by one person (the trusteeA person who stands in a fiduciary relation to another, having been given legal title to someone else’s property for the benefit of a third party.) at the request of another (the settlorThe individual who creates a trust.) for the benefit of a third party (the beneficiaryA person for whom property is held, e.g., in a trust, or who is to receive something as a result of a legal instrument, e.g., a will or insurance policy.). The trust defines what happens to property held in the trust, especially after the settlor passes away.