What is trust
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Trusts originated as a legal mechanism called a "use" to avoid feudal obligations and hold land for those away from battle. A modern trust involves a settlor transferring legal title of property to a trustee to hold for the benefit of beneficiaries. The trustee holds legal title and owes fiduciary duties to beneficiaries, who hold equitable title. Trusts are created through a written instrument or will and require clear identification of property, beneficiaries, and intent to create a trust. United States trust law is governed at the state level, with many states adopting uniform codes, and is also subject to federal tax law.
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What is trust
- 2. Table of content History of trust. The modern trust Legal title (Ownership) Creation Formalities US trust law Our contacts
- 3. History of trust. Started life as the Use (Use was created to avoid feudal incidents, to hold land whilst men were away in battle) An institution of Chancery. (The body of law developed by Chancery is called EQUITY.油
- 4. The modern trust Settlor Sets up the trust by transferring legal title Trustee Holds legal title Beneficiary Holds equitable title. Is equitable owner.
- 5. Legal title (Ownership) A property right Can be asserted against an indeterminate category of persons. Imposes duties on an indeterminate category of persons not to interfere. Personal right (right in personam) Can be asserted against limited category of persons. Imposes duties on specific persons.
- 6. Creation Typically a trust can be created in the following ways: a written油trust instrument油created by the settlor and signed by both the settlor and the trustees an oral declaration the油will油of a decedent, usually called a testamentary trust a court order (for example in family proceedings).
- 7. Intention There must be a clear intention to create a trust Subject Matter The property subject to the trust must be clearly identified. One may not, for example state, settle "the majority of my estate", as the precise extent cannot be ascertained. Trust property may be any form of specific property, be it real or personal, tangible or intangible. It is often, for example, real estate, shares or cash. Objects The beneficiaries of the trust must be clearly identified, or at least be ascertainable. In the case of discretionary trusts, where the trustees have power to decide who the beneficiaries will be, the settlor must have described a clear油class油of beneficiaries . Beneficiaries may include people not born at the date of the trust. Formalities
- 8. United states trust law State law油applies to trusts, and the油Uniform Trust Code油has been enacted by the legislatures in many states. In addition, federal law may affect the structure and creation of trusts. The common law of trusts is summarized in the Restatements of the Law. In the United States the tax law allows trusts to be taxed as corporations, partnerships, or not at all depending on the circumstances, although trusts may be used for油tax avoidance 油in certain situations.
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- 10. For further information visit: http://margarianlaw.com/ https://en.wikipedia.org/wiki/Trust_law https://goo.gl/G6cDVx
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