What can a trust account be used for?

To establish a trust, the property owner (grantor) transfers legal ownership to a person or an institution (trustee) to manage that property for the benefit of a third party (beneficiary). The grantor may choose to serve as the trustee, retaining ownership of the property, but they still have an obligation to act in a fiduciary capacity. Additionally, the grantor may designate themselves as one of the beneficiaries of the trust. However, regardless of the arrangement, the trust cannot become effective until the grantor funds the trust or, in other words, transfers the property into the trust.