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 North Carolina, a trust is established when a trustor (also known as a grantor or settlor) expresses the intention to create a trust, typically through a written trust agreement, which is also signed by the trustee. The trustor transfers ownership of assets to the trust, which are then managed by the trustee for the benefit of designated beneficiaries, who can be descendants, heirs, or other individuals or entities. North Carolina law allows for the creation of self-settled trusts, where the trustor themselves can be the beneficiary. Trusts in North Carolina are governed by the North Carolina Uniform Trust Code (N.C. Gen. Stat. § 36C-1-101 et seq.), which outlines the requirements for creating a trust, the duties and powers of trustees, and the rights of beneficiaries. It is important for trustors to comply with these statutes to ensure the trust operates as intended and provides the desired benefits to the beneficiaries. Individuals considering setting up a trust may benefit from consulting with an attorney to navigate the legal requirements and to tailor the trust to their specific needs.