The foundational legal document establishing a trust, defining the settlor's intent, naming trustees and beneficiaries, specifying trust property, and setting forth the terms governing trust administration and distribution. Also called a trust document, trust instrument, or declaration of trust.
The trust agreement is the document that creates the trust. It's like the trust's rulebook—it says who manages the trust (trustee), who benefits from it (beneficiaries), what property goes in it, and how it should be run.
⏱ When you'll encounter this term
- Creating a living trust or testamentary trust
- Transferring assets into a trust
- Trustees managing trust administration
- Beneficiaries seeking to understand trust terms
"Dad's trust agreement named my uncle as trustee and said the trust assets should be used for our education until we turn 25, then distributed to us equally. When I wanted to know my rights, I read the trust agreement—it spelled out everything."
⚖️ Compare: Trust Agreement vs Will
Creates trust. Can operate during life. May avoid probate. Complex ongoing administration.
Directs estate distribution. Only effective at death. Goes through probate. Simpler one-time transfer.
💡 Did you know?
A trust agreement can be amended or revoked if it's a revocable trust, allowing the settlor to change terms during their lifetime. But once it becomes irrevocable—either by its own terms or the settlor's death—the trust agreement generally cannot be changed without court approval or beneficiary consent.