Definition: A legal arrangement in which a trustee holds or administers property for beneficiaries under the trust's terms and applicable law. The person creating the trust is commonly called the settlor.
Example
A trust directs its trustee to manage property for a beneficiary until a specified event occurs.
Keep the distinction clear
The trustee's management powers and the beneficiary's rights are different. A trust is not the same as merely placing money in a broker's escrow account.
Related terms
Trustee · Fiduciary · Estate (Property Interest)
Keep studying
FREC Course I Syllabus: What to Study for the Sales Associate State Exam
References: Florida Statutes 736.0103: trust definitions
Pronunciation (US): TRUST (capitals show stress)
Pronunciation reference: Merriam-Webster
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