Quora Answer: Can a Trust be Considered an Asset?

The following is my answer to a Quora question: “Can a trust be considered an asset?” 

The trust is a vehicle to manage assets, not an asset in itself.  The assets in the trust are the assets.  The ownership of the assets depends on the type of trust.  If the trust is a revocable trust, the assets in the trust still belong to the settlor or grantor, and he is liable for any tax exposure.  If the assets are in an irrevocable trust, they cease to be assets of the settlor or grantor, and are now considered the assets of the trustee.  The settlor, if he is still alive, has a fiduciary relationship with the trustee, and may take back some or all of those assets, as per provisions within the letter of wishes.  When that happens, the assets belong to the settlor.  When the assets are disbursed by the trust, they become assets of the beneficiary.