As the first part of our Trust 101 Content Series, we begin with an overview of the trust mechanism: who the main participants are, and what terms like Trust, Trustor, Trustee, and Beneficiary mean.

Sounds Confusing !! Wondering how they are connected? No worries, we’ll explain everything in a simple and easy-to-understand way.

Let’s get started.

What is a Trust?

A trust is a legal and private arrangement in which an individual or entity, known as the Trustor, transfers ownership of their assets to a Trustee. The Trustee then manages those assets on behalf of another person or group — known as the Beneficiaries, according to the instructions set by the Trustor.

Key Participants in a Trust Arrangement

Trustor

The person or entity who creates the trust and transfers assets into it.

Example: Mr. Chen sets up a trust and transfers his land to benefit his children — he is the Trustor.

Trustee
The individual or organization responsible for managing the trust assets according to the trust terms.

Example: Everstone Wealth manages Mr. Chen’s land on his behalf — Everstone Wealth is the Trustee.

Beneficiaries

The individuals or entities who receive benefits from the trust.

Example: Mr. Chen’s children, who inherit or receive income from the land — they are the Beneficiaries.