A trust is a legal entity created by a person known as the trustor, grantor, or settlor who owns assets (cash, stocks, bonds, real estate, art, jewelry, machinery, etc.) and transfers ownership of the assets to the trust—while directing a person or entity known as the trustee to hold and manage the assets for the benefit of a certain person or persons, or classification of persons (descendants) known as the beneficiary or beneficiaries. The assets or property in a trust are sometimes referred to by the Latin word res (pronounced “rays”).

Beneficiaries are often descendants or heirs of the trustor, grantor, or settlor, but in some states (and other countries) the trustor, grantor, or settlor may be the beneficiary—and in that case the trust is known as a self-settled trust.

A trust is generally created when a trustor, grantor, or settlor shows or manifests an intent to create a trust by signing or executing a written trust agreement that is also signed by the trustee.

In Colorado, trusts are governed by the Colorado Trust Code, which is part of the Colorado Revised Statutes. A trust is established when a trustor (also known as a grantor or settlor) expresses the intention to create it, usually through a written trust agreement, and transfers assets into the trust. The trust agreement must be signed by both the trustor and the trustee, the latter being the individual or entity responsible for managing the trust assets for the benefit of the beneficiaries. Beneficiaries can include descendants, heirs, or even the trustor themselves in the case of a self-settled trust. Colorado law allows for the creation of self-settled trusts, which are trusts where the trustor is also a beneficiary. These trusts can provide asset protection benefits under certain conditions. It's important to note that trusts must be created and managed in compliance with state law, and an attorney can provide guidance specific to individual circumstances and ensure that the trust operates as intended.