Before considering the subject of trust companies, it is necessary first to understand the nature of a trust. For example, A surrenders certain property to B with the understanding that the former retains full benefit of the property, while the latter holds a kind of ownership over it. The first party has such faith that he yields the title of his property over to the second party, who in consequence assumes an obligation which is described as a trust. The party who receives the ownership is known as the trustee, and the giver is called the trustor. He may at the same time be the beneficiary who derives the income or the use of the property in trust. More usually, the beneficiary is a third party - for example, a son for whose education the father creates a fund to be administered by some friend acting as trustee in accordance with the terms of a formal agreement. This illustration indicates all the essential parties and factors in a trust, namely: beneficiary, trustor, trustee, property in trust, and statement of the terms under which this property is to be assigned, administered and finally disposed.