According to U.S. law, trusts are considered to be legal entities with the right to own assets. This arrangement offers individuals a way to divest themselves of ownership of many assets without actually losing control over them. This is done through establishing a living, revocable trust. A person can choose to sign over financial accounts, real estate, stocks and bonds, or other assets with income generating potential into the trust. The trust is managed by a trustee. This can be the person who set up the trust (the grantor) or a third party.

While the grantor is living, he/she can be the beneficiary of a living trust. There can be more than one trustee and more than one beneficiary. Spouses often name each other as co-trustees and co-beneficiaries of a trust containing their marital assets. That way, there is no question about who will inherit full ownership of any joint property when one spouse dies. Besides revocable trusts, there are many other types of trusts that offer tax advantages, cut probate fees, and protect assets from claims by creditors.