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 Rhode Island, a trust is established when an individual (trustor, grantor, or settlor) expresses the intention to create a trust, typically through a written trust agreement, which must also be signed by the trustee. The trust agreement outlines how the trust assets, or 'res,' will be managed and distributed. These assets can include a wide range of property such as cash, stocks, real estate, and personal items. The trustee is responsible for managing the trust assets for the benefit of the beneficiaries, who are often the descendants or heirs of the trustor but can also be any person or class of persons designated by the trustor. Rhode Island law permits the creation of self-settled trusts, where the trustor establishes a trust for their own benefit. Trusts in Rhode Island are governed by the Rhode Island Trust Code, which provides the regulatory framework for the creation, management, and termination of trusts within the state.