In simple terms, a trust is a relationship in which a person, called a trustor, transfers something of value to another person, called a trustee. The trustee then manages and controls the property placed in the trust for the benefit of a third person, called a beneficiary. In managing the property, the trustee must comply with the terms of the trust and with other requirements established by state law. Property placed in a revocable trust can be removed by the trustor at any time, at the trustor's discretion. However, placing property in an irrevocable trust is the same as making a gift - you are giving up ownership and control forever.
Trusts have several uses and they can be of much benefit when they are properly set up.
One common use is to provide flexible control of assets for the benefit of minor children. This often avoids the necessity of having to have a guardian appointed to manage property inherited by minor children since they cannot legally handle their own financial affairs until they reach the age of 18. Often parents want their children to be even older before they are given full use of their inheritance. It is not difficult to imagine the difficulty most 18-year olds would have with managing a large sum of money given to them in one lump sum. By establishing a trust, parents can select a trustee and specifically instruct them on how to use the assets for the benefit of the children.