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A trust is an agreement under which title to property (often investment property) is given to a trustee who is obligated to hold the property for the benefit of another person, who is known as the beneficiary. For example, if you have a minor child to whom you would like to give money or other property, but you would like to keep control over the funds away from the child, then instead of giving the property directly to the child, you can give the property to a trustee under a trust instrument for the benefit of the child. The terms of the trust are variable, allowing for greater or lesser control for the trustee over the property. Trusts can be revocable or irrevocable. As for tax consequnces: a trust can be a useful tax-planning tool because (among other reasons) transfers in certain irrevocable trusts are treated as completed gifts for gift tax purposes. These completed gifts can take advantage of the annual exclusion from the gift tax.
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