Trust Instrument

Also known as: Deed of Trust

In one sentence

The legal document that creates a trust and outlines how assets will be managed and distributed.

Plain English

A trust instrument is the written agreement that establishes a trust and governs its operation. It contains the grantor's instructions about who manages the trust (trustee), who receives benefits (beneficiaries), how much they receive, and when they receive it. The trust instrument may also address what happens if circumstances change, how the trustee should invest funds, and whether the trust can be modified or ended. It's the foundational legal document that gives the trustee authority to act.

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Example

Elena's trust instrument specifies that her son serves as trustee, her grandchildren are beneficiaries, and income from her investment portfolio is distributed quarterly to each grandchild until they turn 25, when they receive their principal share.

Used in a sentence

“The trust instrument must be signed, witnessed, and notarized to be legally valid in most states.”

Related terms

Grantor

The person who creates a trust and transfers property into it.

Trustee

The person or institution legally responsible for managing assets held in a trust.

Beneficiary

A person or organization entitled to receive money or property from a trust, will, or insurance policy.

Irrevocable Trust

A trust that cannot be changed, modified, or terminated once created without beneficiary consent.

Revocable Trust

A trust that the grantor can modify, amend, or terminate during their lifetime.

Probate

The court process of validating a will and distributing a deceased person's estate.

Intestate Succession

The legal process of distributing a deceased person's property when they leave no valid will.

Elective Share

A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.