A trust is a contractual arrangement which governs and directs a person, called a trustee, who manages the trust the beneficiary who benefits from the trust. An insurance trust is a trust that owns insurance, typically on the grantor's life. The grantor (also called settlor or trustor) is the person who sets up the trust. Trusts are used to own life insurance to keep the insurance out of the grantor's taxable estate, provide professional management of the trust assets (the insurance and then its proceeds) and to assure who the people will be to benefit from the trust. This is one of the most commonly used trusts.
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