Definition: A trust is a legal entity that holds property or assets for another person, group of people or organization known as the beneficiary. The person creating a trust is called the grantor, donor or settlor. When a trust is established, an individual, a group of individuals, or a corporation, called a trustee, is appointed to manage the property or assets. Many people choose to make a living trust as part of their will. A separate trust is often made to cover funeral costs.