A trust is a separate legal entity a person sets up to manage their assets. Trusts are set up during a person's lifetime to assure that assets are used in a way that the person setting up the trust deems appropriate. The two basic types of trusts are a revocable trust and an irrevocable trust. The owner of a revocable trust may change its terms at any time. They can remove beneficiaries, designate new ones, and modify stipulations on how assets within the trust are managed. The terms of an irrevocable trust, in contrast, are set in stone the minute the agreement is signed.