What document is used to establish the terms and obligations of a trust?

The document utilized to establish the terms and obligations of a trust is known as a trust instrument. This legal document articulates the specifics regarding how the trust operates, including the roles and responsibilities of the trustee, the rights of the beneficiaries, and how the assets within the trust are to be managed and distributed. It serves as the foundational framework for the trust’s existence and ensures that the intentions of the person creating the trust (the grantor or settlor) are clearly outlined and legally enforceable.

In contrast, the other options serve different purposes. A beneficiary agreement typically details the rights and obligations among beneficiaries but does not establish the trust itself. A will is intended for distributing a person's assets after their death and does not outline the operation of a trust. A power of attorney grants someone authority to act on another person's behalf but does not pertain to the establishment or management of a trust.