Sometimes, only life insurance is put in the trust and sometimes money, real property, or investment assets are contributed. The trust agreement then goes on to direct the trustee to manage the assets, and how to pay over income and principal to the beneficiaries. The trust specifies when the principal can be paid out, and sets forth a time when the trust will terminate. Most of the trust agreement consists of powers granted to the trustee and provisions regarding the operation of the trust. A long list of powers for the trustee makes for dull reading but gives the trustee the flexibility to manage the trust in all kinds of circumstances.
Every trust has to have a trustee, and some have two or more.
Most trustees operate without much supervision. Dishonesty among trustees is probably rare, but can be devastating. Acting as trustee requires good business judgment and a willingness to abide by the rules the law lays down for trustees. Good record-keeping and attention to detail are very important. Acting as trustee is a serious job and often takes serious time.