What is a Trust?
A trust is a legal relationship, which is usually created by a declaration of the original owner of property ("the settlor") vis-à-vis the person to whom the property is transferred ("the trustee").
The concept of a trust is based on the distinction in English law between "legal ownership" and "beneficial ownership", the latter sometimes also referred to as "equitable" ownership. If a person holds a property as a trustee, he or she merely holds the legal title to the property. The beneficial ownership, which is the right to enjoy or benefit from the property, is vested with the beneficiaries of the trust.
The trust relationship is generally created by signing and executing a trust deed or a declaration of trust. These legal documents set out the terms of the trust. A trust can be revocable or irrevocable. A revocable trust can be terminated by the settlor while an irrevocable trust cannot be brought to an end by a decision of the settlor only.