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 Virginia, 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 outlines how the trustor's assets, referred to as the 'res,' will be managed and distributed by the trustee for the benefit of designated beneficiaries, who can be descendants, heirs, or any other persons or classifications of persons chosen by the trustor. Virginia law allows for the creation of self-settled trusts, where the trustor themselves can be the beneficiary of the trust. Trusts in Virginia are governed by the Virginia Trust Code, which provides the legal framework for the creation, management, and termination of trusts within the state. The Code specifies the duties and powers of trustees, the rights of beneficiaries, and the requirements for a valid trust. It is important for trustors to comply with these legal requirements to ensure that the trust operates as intended and provides the desired benefits to the beneficiaries.