A trust is a legal arrangement where a settlor transfers property to a trustee to hold and manage for the benefit of beneficiaries. The 7 most important things to know about forming a trust are: 1) a trust's purpose is to manage property for those incapable, like minors; 2) trusts help manage estates and avoid taxes; 3) a trust is created through a written document like a will; 4) anyone competent can create a trust and be a trustee; 5) a private trust benefits individuals while a public trust benefits charities; 6) an express trust is created to transfer property after death through a will or deed, while a constructive trust remedies wrongful property acquisition; and 7) a discretionary trust can protect assets