A trust is an entity created and governed under the state law in which it was formed. A trust involves the creation of a fiduciary relationship between a grantor, a trustee, and a beneficiary for a stated purpose. A trust may be created by any of the following methods:
• A declaration by the owner of property that the owner holds the property as trustee;
• A transfer of property by the owner during the owner's lifetime to another person as trustee;
• A transfer of property by the owner, by will or by other instrument taking effect upon the death of the owner, in trust, to another person as trustee or
• An exercise of a power of appointment to another person as trustee or an enforceable promise to create a trust.

If you would like more information on trusts or setting up one, please contact Keith Youngren at www.taxconnections.com/Keith-Youngren-CPA/12274983/United-States/Texas/Austin/profilepage