Trust is essential to almost everything we do. From putting our faith in a religious leader to hiring a psychotherapist or even lending someone a book, we all depend on others to be trustworthy and honest. If we don’t trust others, we can’t get the help and advice that we need. Trust also plays a central role in our family life, business operations, and even politics and medical practices.

A trust is an arrangement that allows a person (called the grantor) to transfer assets to a trusted individual or corporation who will hold and manage those assets for the benefit of one or more beneficiaries. The trustee is bound by a high standard of care to carry out the grantor’s instructions as described in the trust document. The trustee may make decisions about buying, selling or changing the nature of assets owned by the trust, such as real estate, stocks, bonds and savings/checking accounts. The trustee is also responsible for investing those assets and making distributions to beneficiaries.

Creating a trust is a complex process that should not be undertaken without the assistance of an experienced legal professional. A legal professional can guide you to the kind of trust that will meet your needs and ensure that the documents are drafted correctly so they achieve your goals and will hold up in court.

Before you create a trust, consider what assets you would like to transfer to it and whom you want to receive those assets. Beneficiaries can range from children or other relatives to charities, educational institutions and foundations. You can have both current beneficiaries who are entitled to distributions now and future beneficiaries (called remainder beneficiaries) who will receive payments at a later date.

Next, work with an attorney who has experience drafting trust documents to discuss your particular situation and the provisions that you would like to include. Your attorney can explain the benefits of a trust and help you draft the appropriate documents. It’s also a good idea to coordinate with your financial and tax professionals so that they are aware of the trust you are planning.

Once you have the documents prepared, you can open a trust account at your bank or other financial institution. You will need to retitle any assets that are being transferred into the trust, such as cars, real estate, stocks and bonds. You will also need to change the name on any titled assets, such as checking and savings accounts, certificates of deposit, insurance policies and retirement accounts.

Once you have the documents in place, you will need to communicate with the trustees and ensure that they understand your wishes. You will also need to fulfill any stipulations that are required in order to receive funds from the trust. This could mean waiting until a certain age or fulfilling educational milestones. Each trust is unique, but there are some general best practices that should be followed.