A trust is a legal arrangement under which one party, known as the grantor, transfers property to another, called a trustee. The trustee is charged with managing the trust property for the benefit of a third party, called the beneficiary. The beneficiary can be a person or an organization, such as a charity. Trusts are used for a number of purposes, including mitigating estate, income and gift taxes, protecting assets, providing financial support for minors until they are adults and preserving family-owned businesses.

To build a relationship of trust, both parties must demonstrate loyalty and mutual respect, according to clinical psychologist Sabrina Romanoff, an associate professor at Yeshiva University. It also requires vulnerability, which is why it can take time to develop in a relationship. Trust can be broken in a number of ways, such as through theft or lying. It can also be eroded by an inability to forgive or by lack of empathy. It can be regained through consistent, honest communication and actions.

Many people assume that a trust is only for the wealthy, but anyone can benefit from this type of fiduciary agreement. It’s especially useful for those who wish to transfer assets while they are still alive, avoid probate or protect their loved ones in case of incapacity.

A common type of trust is a living or revocable trust, which allows the grantor to change beneficiaries and tweak the terms of the trust while they are still alive. It’s also possible to transfer control of the trust after death, though that can be more expensive.

Irrevocable trusts are another option. They can protect assets from creditors and bad spending habits by carefully specifying when and how money and assets are transferred to a beneficiary. They’re also good for those who receive government benefits, as they can be structured so the funds don’t disqualify them from those programs.

While it’s possible to create a trust on your own, hiring a lawyer can make the process more efficient and ensure that the trust will achieve your goals. Trusts are complex legal arrangements that should be reviewed regularly to ensure they’re working as intended. A legal professional can help you select the right type of trust for your needs, ensure the documents are properly written and will hold up in court if challenged.

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Regardless of what kind of trust you want to establish, it’s important to interview potential lawyers to find out what they offer and how much their services cost. Some may charge a flat fee, while others may bill by the hour. Before you hire someone, review the firm’s reputation and interview other clients to see what their experiences were like.