What legal document is typically involved in a trust?

The legal document that is typically involved in a trust is a trust agreement or declaration. This document outlines the terms of the trust, including the identity of the grantor (the person who creates the trust), the trustee (the person or entity responsible for managing the assets in the trust), and the beneficiaries (those who will receive benefits from the trust). The trust agreement also specifies how the assets in the trust should be managed and distributed, thus serving as the foundational document governing the trust's operation.

Understanding this is key in the context of estate planning, as a trust can help manage and protect the assets of the grantor during their lifetime and after their death. The trust agreement is essential for establishing the legal framework within which the trust operates and ensuring that the grantor's intentions are honored.

In contrast, the other options serve different purposes: an affidavit is a written statement confirmed by oath for use as evidence in court, a power of attorney grants someone authority to act on behalf of another in legal or financial matters, and a last will and testament outlines how a person's assets should be distributed upon their death, but it does not create a trust. Therefore, the trust agreement or declaration is the correct choice regarding the formation and governance of a trust.