What is a trust?

A trust is indeed a legal entity created to hold and manage assets for the benefit of a specific individual or group, known as beneficiaries. The creator of the trust, often referred to as the grantor or settlor, transfers ownership of assets into the trust. The trust is managed by a trustee, who has a fiduciary duty to act in the best interests of the beneficiaries.

This arrangement allows for the systematic management and distribution of assets, often providing benefits such as tax advantages, avoidance of probate, and control over how and when assets are distributed to beneficiaries. Trusts can be tailored to achieve a variety of financial and estate planning goals, thus playing a significant role in wealth management.

The other options described do not accurately capture the essence of a trust. A document outlining an investor's strategies refers more to investment policy statements or financial plans rather than the structure of a trust. A financial statement summarizing an estate pertains to documentation of an individual’s financial position, rather than a legal entity for asset management. A government regulation on financial investments relates to laws governing the financial industry but does not describe the function or purpose of a trust.