How do legal trust work?

Legal trusts are arrangements where one party, known as the trustee, holds and manages assets for the benefit of another party, called the beneficiary. The terms of the trust are outlined in a legal document, specifying how the assets should be managed and distributed. Trusts can help avoid probate, minimize taxes, and provide for specific needs of beneficiaries. They can be revocable, allowing the creator to modify or dissolve the trust, or irrevocable, where the terms cannot be changed once established.