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 Iowa, a trust is established when an individual (trustor, grantor, or settlor) expresses the intention to create a trust, typically through the execution of a written trust agreement, which must also be signed by the trustee. The trust agreement details how the trustor's assets, which can range from cash and securities to real estate and personal property (collectively referred to as 'res'), are to be managed and distributed by the trustee. The trustee holds legal title to the trust assets and manages them for the benefit of the beneficiaries, who can be descendants, heirs, or any designated persons or classes of persons. Iowa law permits the creation of self-settled trusts, where the trustor can also be a beneficiary. Trusts in Iowa are governed by the Iowa Trust Code, which outlines the creation, administration, and duties associated with trusts. It is important for trustors to comply with the specific requirements of the Iowa Trust Code to ensure the trust is valid and operates as intended. An attorney can provide guidance on the creation and management of trusts to ensure they meet legal requirements and the trustor's objectives.