The "trust" name refers to the ability to act as a trustee – someone who administers financial assets on behalf of another.
The assets are typically held in the form of a trust, a legal instrument that spells out who the beneficiaries are and what the money can be spent for.
Estate planning is usually also offered to allow clients to structure their affairs so as to minimize inheritance taxes and probate costs.
In the United States, one of the primary profit centers for a trust company is commissions earned from selling various types of insurance products designed to minimize the estate tax charged to a person.
Some trust companies are formed not merely for the benefit of a minor or an individual trustee, but for the preservation of nature or historic sites.
[4] The institution may then employ these assets (less a legally-required fractional reserve) to issue secured loans, such as mortgages.