Definition - What does Trust mean?
A trust is a legally binding agreement in which one party passes assets on to another party, who manages the assets on behalf of that party. The party who receives the assets and is tasked with managing them is known as the trustee.
In the context of the law, the trustee must manage the assets according to the wishes of the grantor (the person who set up the trust).
Justipedia explains Trust
There are many different types of assets that may be put into a trust, for example: real estate, cash, annuities, insurance policies, etc.
Trusts are commonly set up so that the assets can be passed along to beneficiaries later in the future. It is common for people to set up trusts and name their children or grandchildren as beneficiaries. Trust funds are one way that people pass along assets to their descendants through trusts.