A trust account is a legal arrangement in which one party, called the grantor or settlor, transfers assets to a third party, known as the trustee, to hold and manage those assets on behalf of another party, the beneficiary. The trustee has a fiduciary duty to manage the assets according to the terms set by the grantor and in the best interest of the beneficiary

. Key features of a trust account include:

• The trustee legally owns the assets but must use them solely for the benefit of the beneficiary.
• The beneficiary has rights to benefit from the assets but typically cannot control or access the assets directly until conditions are met.
• Trust accounts can hold various assets such as cash, stocks, bonds, real estate, or mutual funds

• Trusts can be revocable or irrevocable, affecting control and tax implications

• They often help avoid probate, allowing faster and private transfer of assets upon the grantor's death

• Trust accounts are commonly used in estate planning, to manage assets for minors or individuals unable to manage their own affairs, or for specific purposes like education or medical care

In summary, a trust account is a fiduciary arrangement designed to protect and manage assets for the benefit of others, with legal oversight to ensure the trustee acts according to the grantor's instructions and the beneficiary's best interests