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A B C D E F G H I J K L M Trust definition: A legal obligation with respect to property
N O P Q R S T U V W X Y Z
given by a person (donor) to another (trustee) to the advantage of
a beneficiary
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Related Terms: Constructive Trust, Discretionary Trust, Express Trust,

Legal Citations & Abbreviations
Resulting Trust, Secret Trust, Sprinkling Trust, Trustee, Beneficiary, Fixed
Law Resources by Topic Trust, Settlor, Donor, Cestui Que Trust or Cestui Que Use , Use

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obligation given by a person called the donor or settlor, binding upon the trustee,
for the benefit of another person (the beneficiary, cestui que trust or donee).

An independent legal process that a person, usually called a settlor or a donor, can
initiate and once started, runs its course to the benefit of a beneficiary and as
administered by a person of the settlor's choice, called a trustee, the latter, once
apppointed, accountable to the beneficiary.

R. Oerton's Underhill's Law Relating to Trusts & Trustees (London: Butterworths,

1970), page 3 defines a trust as:

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Trust Definition http://www.duhaime.org/LegalDictionary/T/Trust.aspx

".. an equitable obligation binding a person (who is called a trustee) to deal with
property over which he has control (which is called the trust property), for the
benefit of persons (who are called beneficiary or cestui que trust), of whom he
may himself be one, and any one of whom may enforce the obligation. Any act or
neglect on the part of a trustee which is not authorised or excused by the terms
of the trust instrument, or by law, is called a breach of trust."

The American authority, Scott on Trusts (formal citation: Scott, A. and Fratcher, W.,
The Law of Trusts, Boston: Little, Brown and Company, 1987, p. 41) very meakly
proposes this definition (of an express trust), which leads one to imagine the
lengthy committe meeting from which it issued:

"... a fiduciary relationship with respect to property, subjecting the person by

whom the title to property is held to equitable duties to deal with the property for
the benefit of another person, which arises as a result of a manifestation of an
intention to create it."

The trustee manages and administers the property, actual ownership is shared
between the trustee and the beneficiary and all the profits go to the beneficiary.

The word fiduciary can be used to describe the responsibilities of the trustee
towards the beneficiary.

When a person dies, their assets are held in trust until they can be distributed. Thus,
a will forms a trust (called a testamentary trust) but trusts can be formed during
the lifetime of the settlor in which case it is called an inter vivos or living trust.

Trusts are further subdivided into express trusts, statutory trusts, and resulting or
constructive trusts end even quistclose trusts.

Further Reading:

Introduction To The Law of Trusts

Trust Law: The Players
Trust Law: When Things Get Nasty
Charitable Trusts
Constructive and Resulting Trusts
Trust Law: The Big Cases

CATEGORIES AND TOPICS:

This term applies to the following categories or areas of law:

Trusts, Wills, Estates and Probate Law Dictionary

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Unless otherwise noted, this article was written by Lloyd Duhaime, Barrister, Solicitor, Attorney and Lawyer (and Notary Public!). It is not

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Trust Definition http://www.duhaime.org/LegalDictionary/T/Trust.aspx

intended to be legal advice and you would be foolhardy to rely on it in respect to any specific situation you or an acquaintance may be
facing. In addition, the law changes rapidly and sometimes with little notice so from time to time, an article may not be up to date. Therefore,
this is merely legal information designed to educate the reader. If you have a real situation, this information will serve as a good springboard
to get legal advice from a lawyer.

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