Which of the following best describes a trust?

A trust is best described as a fiduciary relationship in which one party holds assets for the benefit of another. This definition encapsulates the core essence of a trust, which involves a trustee (the party managing the assets) who has a legal obligation to manage those assets in the best interest of the beneficiaries (the parties who benefit from the trust). The trustee acts not for their own benefit but for the beneficiaries, ensuring that the terms of the trust document are followed and that the assets are preserved, managed, and distributed according to the wishes of the creator of the trust (the grantor).

This fiduciary relationship is fundamental to trust law and underpins the roles and responsibilities involved. It entails loyalty, care, and prudence on the part of the trustee, emphasizing the beneficiary's right to benefit from the assets held in trust. Other options might touch upon aspects related to trusts, but they do not encompass the full breadth of what defines a trust as effectively as the selected answer does.