In common law legal systems, a trust is an arrangement whereby property (including real, tangible and intangible) is managed by one person (or persons, or organizations) for the benefit of another. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property In English law, Administration of an estate on death arises if the deceased is legally Intestate. Common law refers to law and the corresponding legal system developed through decisions of courts and similar tribunals rather than through legislative statutes or executive In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property Wills in the Ancient World The will if not purely Roman in origin at least owes to Roman law its complete development a development which in most European countries Joint wills and mutual wills are closely related terms used in the Law of wills to describe two types of testamentary writing that may be executed by a A will contract is a term used in the Law of wills describing a Contract to exchange a current performance for a future bequest A codicil is a document that amends rather than replaces a previously executed will. A holographic will is a will and testament that has been entirely handwritten and signed by the Testator. An oral or nuncupative will is a will that has been delivered Orally to the witnesses In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property In the statutory law of wills and trusts in the United States, an attestation clause is a clause that is typically appended to a will often just A residuary estate, in the Law of wills, is any portion of the Testator 's estate that is not specifically devised to someone in the will or any property Incorporation by reference is a doctrine of the Common law of wills by which a person may state in his will that certain property is to be disposed of by a separate A will contest, in the Law of property, is a formal objection raised against the validity of a will, based on the contention that the will does not reflect In the Common law tradition testamentary capacity is the legal Term of art used to describe a person's legal and mental ability to make a valid will Undue influence (as a term in Jurisprudence) is an equitable doctrine that involves one person taking advantage of a position of power over another person An insane delusion is the legal Term of art in the Common law tradition used to describe a false conception of reality that a Testator of a In the broadest sense a fraud is a Deception made for personal gain or to damage another individual Lapse and anti-lapse are complementary concepts under the Law of wills, which address the disposition of property that is willed to someone who dies before Ademption is a term used in the Law of wills to determine what happens when property bequeathed under a will is no longer in the Testator 's estate when Abatement of debts and legacies is a Common law doctrine of wills that holds that when the equitable Assets of a deceased person are not sufficient The doctrine of acts of independent significance, in the Common law of wills, permits the Testator to effectively change the disposition of her property An elective share is a term used in American law relating to Inheritance, which describes a proportion of an estate which the surviving spouse of the deceased A pretermitted heir is a term used in the Law of property to describe a person who would likely stand to inherit under a will, except that the testator Where property is passed to a person but no gift is made it is held for the owner this is the Resulting trust; where property should for some reason of public policy or fairness A constructive trust is an equitable remedy resembling a trust imposed by a Court to benefit a party that has been wrongfully deprived of its rights due to either A resulting trust (from the Latin 'resultare' meaning 'to jump back' is a situation where property "results" back to the transferor A bare trust (sometimes referred to as a simple trust) is a trust in which the beneficiary has a Right to both Income and capital A discretionary trust is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed but are determined by the criteria set out in the Accumulation & Maintenance ("A&M" trusts are a type of Discretionary trust for the benefit of children and young people in England and Wales An interest in possession trust is a form of legal arrangement which gives a person a "present right to the present enjoyment of something" A charitable trust is a trust established for charitable purposes and is a more specific term than " charitable organisation " A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non- charitable purpose of some kind In American estate planning parlance an incentive trust is a trust designed to encourage or discourage certain behaviors by using distributions of trust income or principal The Protective Trust is a form of settlement found in England and Wales and several Commonwealth countries A spendthrift trust is a trust that is created for the benefit of a person (often because he or she is unable to control spending that gives an independent Trustee A life insurance trust is a trust that is set up for the purpose of owning a Life insurance policy An honorary trust, under the law of trusts, is a device by which a person establishes a trust for which there is neither a charitable purpose, nor a private An asset-protection trust is a term which covers a wide spectrum of legal structures A special needs trust is created to ensure that beneficiaries who are disabled or Mentally ill can enjoy the use of Property which is intended to A Supplemental Needs Trusts is a US-specific term for a type of Special needs trust (an internationally recognised term In Common law legal systems a trust is an arrangement whereby Property (including real tangible and intangible is managed by one person (or persons or organizations A pour-over will is a testamentary device wherein the writer of a will creates a trust, and decrees in the will that the property in his estate at the time of his The cy-près doctrine (pronounced ˌsaɪ ˈpreɪ "sigh-PRAY" is a legal Doctrine that first arose in Common law Courts of equity Intestacy is the condition of the estate of a person who dies owning property greater than the sum of his or her enforceable debts and funeral expenses without having made a A testator is a person who has written and executed a last will and testament that is in effect at the time of his/her death Probate is the Legal process of settling the estate of a deceased person specifically resolving all claims and distributing the decedent's Property A power of appointment is a term most frequently used in the Law of wills to describe the ability of the Testator (the person writing the will to select Simultaneous death is a problem of inheritance which occurs when two people at least one of whom is entitled to part or all of the other's estate on their death (usually a husband and The slayer rule, in the Common law of Inheritance, is a doctrine that prohibits inheritance by a person who Murders someone from whom he or she stands Disclaimer of interest (also called a renunciation) in the Law of Inheritance, wills and trusts is a term that describes an Advance health care directives or advance directives are instructions given by individuals specifying what actions should be taken for their health in the event that they are A Totten trust (also referred to as a "Payable on Death" account is a form of trust created where one party (the Settlor of the trust places A contract is an exchange of promises between two or more parties to do or refrain from doing an act which is enforceable in a court of law Tort law is the name given to a body of law that creates and provides remedies for civil wrongs that do not arise out of Contractual duties Property law is the area of Law that governs the various forms of Ownership in Real property (land as distinct from personal or movable possessions The term criminal law, sometimes called penal law, refers to any of various bodies of rules in different Jurisdictions whose common characteristic is the potential The Law of evidence governs the use of Testimony (eg oral or written statements such as an Affidavit) and exhibits (e Common law refers to law and the corresponding legal system developed through decisions of courts and similar tribunals rather than through legislative statutes or executive Property is any physical or virtual entity that is owned by an individual A trust is created by a settlor, who entrusts some or all of his or her property to people of his choice (the trustees). In law a settlor is a person who settles property on express trust for the benefit of beneficiaries Trustee is a Legal term that refers to a holder of property on behalf of a beneficiary. The trustees hold legal title to the trust property (or trust corpus), but they are obliged to hold the property for the benefit of one or more individuals or organizations (the beneficiary, a. In Trust law, a beneficiary or cestui que use, aka cestui que trust, is the person or persons who are entitled to the benefit of k. a. cestui que use or cestui que trust), usually specified by the settlor, who hold equitable title. The trustees owe a fiduciary duty to the beneficiaries, who are the "beneficial" owners of the trust property. fiduciary duty is a legal relationship of confidence or trust between two or more parties most commonly a fiduciary or Trustee and a principal
The trust is governed by the terms of the trust document, which is usually written and in deed form. A deed is a Legal instrument used to grant a Right. Deeds are part of the broader category of documents under seal. It is also governed by local law.
In the United States, the settlor is also called the trustor, grantor, donor, or creator. In law a settlor is a person who settles property on express trust for the benefit of beneficiaries
Roman law recognised a fairly similar concept to the trust that it referred to as the fidei commissa, although this was a bequest in a law. Roman law is the legal system of Ancient Rome. As used in the West the term commonly refers to legal developments prior to the Roman/Byzantine state's adopting In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property Roman law never employed a concept equivalent of the inter vivos trust later seen in common law jurisdictions. A living trust ( inter vivos trust) is a trust created during a person's lifetime Another major difference between the fidei commissa and the trust was "the former existing primarily to ensure proper passage of the property and the latter being a mechanism to increase the efficient management of property and to minimize the costs of ownership. "
The waqf in Islamic law, which developed in the medieval Islamic world from the 7th to 9th centuries, bears a notable resemblance to the English trust. A waqf ( plural, awqāf; vakıf wæqəf is an inalienable religious endowment in Islam, typically devoting a building or plot of land for Muslim Sharia ( Arabic: ar شريعة) is the body of Islamic Religious law.  Every waqf was required to have a waqif (founder), mutawillis (trustee), qadi (judge) and beneficiaries. Qadi (also known as Qazi or Kazi or Kadi) (قاضي is a judge ruling in accordance with the Sharia, Islamic religious law  Under both a waqf and a trust, "property is reserved, and its usufruct appropriated, for the benefit of specific individuals, or for a general charitable purpose; the corpus becomes inalienable; estates for life in favor of successive beneficiaries can be created" and "without regard to the law of inheritance or the rights of the heirs; and continuity is secured by the successive appointment of trustees or mutawillis. Usufruct is the legal right to use and derive profit or benefit from Property that belongs to another person as long as the property is not damaged The definition of charitable organization, and of charity varies according to the country and in some instances the region of the country in which the charitable organization operates An estate is the Net worth of a person at any point in time It is the sum of a person's Assets - legal rights interests and entitlements to Property of "Heir" and "Heiress" redirect here For the men and women fragrances endorsed by Paris Hilton see Heiress (fragrance. "
The only significant distinction between the Islamic waqf and English trust was "the express or implied reversion of the waqf to charitable purposes when its specific object has ceased to exist", though this difference only applied to the waqf ahli (Islamic family trust) rather than the waqf khairi (devoted to a charitable purpose from its inception). Another difference was the English vesting of "legal estate" over the trust property in the trustee, though the "trustee was still bound to administer that property for the benefit of the beneficiaries. " In this sense, the "role of the English trustee therefore does not differ significantly from that of the mutawalli. "
The trust law developed in England at the time of the Crusades, during the 12th and 13th centuries. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland The Crusades were a series of military campaigns of a religious character waged by much of Christian Europe against external and internal opponents The trust was introduced by Crusaders who may have been influenced by the waqf institutions they came across in the Middle East. The Middle East is a Subcontinent with no clear boundaries often used as a synonym to Near East, in opposition to Far East.  At the time, land ownership in England was based on the feudal system. Feudalism, a term first used in the early modern period (17th century in its most classic sense refers to a Medieval Europe Political system composed When a landowner left England to fight in the Crusades, he needed someone to run his estate in his absence, often to pay and receive feudal dues. To achieve this, he would convey ownership of his lands to a friend, on the understanding that the ownership would be conveyed back on his return. However, Crusaders would often return to find the legal owners' refusal to hand over the property. Property is any physical or virtual entity that is owned by an individual
Unfortunately for the Crusader, English law did not recognise his claim. As far as the courts were concerned, the land belonged to the trustee, who was under no obligation to return it. The crusader had no legal claim. The disgruntled Crusader would then petition the king, who would refer the matter to his Lord Chancellor. The Lord High Chancellor of Great Britain, or Lord Chancellor is a senior and important functionary in the Government of the United Kingdom. The Lord Chancellor could do what was "just" and "equitable", and had the power to decide a case according to his conscience. At this time, the principle of equity was born. Equity is the name given to the set of legal principles in jurisdictions following the English common law tradition which supplement strict rules of law where
The Lord Chancellor would consider it unjust that the legal owner could deny the claims of the crusader (the "true" owner). Therefore, he would find in favour of the returning crusader. Over time, it became known that the Lord Chancellor's court (the Court of Chancery) would continually recognise the claim of a returning crusader. The legal owner would hold the land for the benefit of the original owner, and would be compelled to convey it back to him when requested. The crusader was the "beneficiary" and the friend the "trustee". The term use of land was coined, and in time developed into what we now know as a trust.
Also, the Primogeniture system could be considered as a form of trust. Primogeniture is the Common law right of the Firstborn son to inherit the entire estate, to the exclusion of younger siblings In Primogeniture system, the first born male inherited all the property and "usually assumes the responsibility of trusteeship of the property and of adjudicating attendant disputes. " 
The trust is widely considered to be the most innovative contribution to the English legal system. English law is the legal system of England and Wales, and is the basis of Common law legal systems used in most Commonwealth countriesand the  Today, trusts play a significant role in all common law systems, and their success has led some civil law jurisdictions to incorporate trusts into their civil codes. Common law refers to law and the corresponding legal system developed through decisions of courts and similar tribunals rather than through legislative statutes or executive Civil law or Romano-Germanic law or Continental law is the predominant system of law in the world. A civil code is a systematic compilation of laws designed to comprehensively deal with the core areas of Private law. Trusts are recognized internationally under the Hague Convention on the Law Applicable to Trusts and on their Recognition which also regulates conflict of trusts. The Hague Convention of the Law Applicable to Trusts and on their Recognition was signed on 1 July, 1985 but came into force on 1 January, 1992 In Conflict of Laws, the Hague Convention on the Law Applicable to Trusts and on Their Recognition was concluded on 1 July 1985 and entered
Property of any sort can be held on trust. The uses of trusts are many and varied. Trusts can be created during a person's life (usually by a trust instrument) or after death in a Will. A trust instrument (also sometimes called a deed of trust, where executed by way of Deed) is an instrument in writing executed by a Settlor used to constitute In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property
Trusts can be created by written document (express trusts) or they can be created by implication (implied trusts). Where property is passed to a person but no gift is made it is held for the owner this is the Resulting trust; where property should for some reason of public policy or fairness
Typically a trust is created by one of the following:
- a written trust document created by the settlor and signed by both the settlor and the trustees (often referred to as an inter vivos or "living trust");
- an oral declaration;
- the will of a decedent, usually called a testamentary trust; or
- a court order (for example in family proceedings). A trust instrument (also sometimes called a deed of trust, where executed by way of Deed) is an instrument in writing executed by a Settlor used to constitute In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property A testamentary trust (sometimes referred to as a will trust) is a trust which arises upon the death of the Testator, usually under his or her
In some jurisdictions certain types of assets cannot be the subject of a trust without a written document. 
Generally, a trust requires three certainties, as determined in Knight v Knight:
- Intention. Knight v Knight (1840 3 Beav 148 is a Landmark case in English equity law. There must be a clear intention to create a trust (Re Adams and the Kensington Vestry)
- Subject Matter. The property subject to the trust must be clearly identified (Palmer v Simmonds). One cannot, for example, settle "the majority of my estate", as the precise extent cannot be ascertained. Trust property can be any form of specific property, be it real or personal, tangible or intangible. In the Common law, real property (or realty) refers to one of the two main classes of Property, the other class being Personal property ( Personal property is a type of Property. In the Common law systems personal property may also be called chattels or personalty. Tangible property in law is literally anything which can be touched and includes both Real property (or in civil law systems Immovable property) and Intangible property, also known as incorporeal property describes something which a person or Corporation can have ownership of and can transfer ownership of to another person 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 (Re Hain's Settlement). 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 class of beneficiaries (McPhail v Doulton). Re Baden's Deed Trusts (No 1 McPhail v Doulton AC 424 was a Landmark decision of the House of Lords in the law of trusts. Beneficiaries can include people not born at the date of the trust (for example, "my future grandchildren"). Alternatively, the object of a trust could be a charitable purpose rather than specific beneficiaries.
The trustee can be either a person or a legal entity such as a company. In Jurisprudence, a natural person is a human being perceptible through the senses and subject to physical laws as opposed to an artificial legal or juristic person Note This Wikipedia entry deals with the legal concept legal person. Generally a company is a form of Business organization. The precise definition varies There can be multiple trustees, (there must be a minimum of two for a trust in relation to land, so that they can provide a receipt in the event of a sale). A trustee has many rights and responsibilities, these vary from trust to trust depending on the type of the trust. A trust generally will not fail solely for want of a trustee; if there is no trustee, whoever has title to the trust property will be considered the trustee. Otherwise, a court may appoint a trustee, or in Ireland the trustee may be any administrator of a charity which the trust is related to. Trustees are nearly always appointed in the document (instrument) which creates the trust.
It is very important to remember a trustee has a huge responsibility. He may be held personally liable for any issues which arise with the trust. For example, if a trustee doesn't properly invest trust monies in order to fully expand the trust fund, he may be liable for the difference. There are two main types of trustees, professional and non-professional. Liability is different for the two types.
The trustees are the legal owners of the trust's property. The trustees administer all of the affairs attendant to the trust. This includes investing the assets of the trust, insuring trust property is preserved and productive for the beneficiaries, accounting for and reporting periodically to the beneficiaries concerning all transactions associated with trust property, filing any required tax returns on behalf of the trust, and many other administrative duties. In some cases, the trustees must make decisions as to whether beneficiaries should receive trust assets for their benefit. The circumstances in which this discretionary authority is exercised by trustees is usually provided for under the terms of the trust instrument. It is then the trustees' duty to determine in the specific instance of a beneficiary request whether to provide any funds and in what manner.
By default, being a trustee is an unpaid job. However, in modern times trustees are often lawyers or other professionals who cannot afford to work for free. Therefore, often a trust document will state specifically that trustees are entitled to reasonable payment for their work.
A trust can be created without the trustees having any knowledge of its existence. However, it is usual for the settlor to make arrangements with potential trustees (for example, friends or a professional) before creating the trust.
The beneficiaries are beneficial (or equitable) owners of the trust property. Either immediately or eventually, they will receive income from the trust property or they will receive the property itself. The extent of an individual beneficiary's interest depends on the wording of the trust document. One beneficiary may be entitled to income (for example, interest from a bank account), whereas another may be entitled to the entirety of the trust property when he turns 25. The settlor has much discretion when creating the trust, subject to limitations imposed by law.
Common purposes for trusts include:
- Privacy. Trusts may be created purely for privacy. The terms of a will are public and the terms of a trust are not. In some families this alone makes use of trusts ideal.
- Spendthrift Protection. Trusts may be used to protect one's self against one's own inability to handle money. It is not unusual for an individual to create an inter vivos trust with a corporate trustee who may then disburse funds only for causes articulated in the trust document. These are especially attractive for spendthrifts. In many cases a family member or friend has prevailed upon the spendthrift/settlor to enter into such a relationship.
- Wills and Estate Planning. Trusts frequently appear in wills (indeed, technically, the administration of every deceased's estate is a form of trust). In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property A fairly conventional will, even for a comparatively poor person, often leaves assets to the deceased's spouse (if any), and then to the children equally. If the children are under 18, or under some other age mentioned in the will (21 and 25 are common), a trust must come into existence until the contingency age is reached. The executor of the will is (usually) the trustee, and the children are the beneficiaries. The trustee will have powers to assist the beneficiaries during their minority.
- Charities. In some common law jurisdictions all charities must take the form of trusts. In others, corporations may be charities also, but even there a trust is the most usual form for a charity to take. A corporation is a separate legal entity usually used to conduct business In most jurisdictions, charities are tightly regulated for the public benefit (in the UK, for example, by the Charity Commission). The Charity Commission for England and Wales (Welsh Comisiwn Elusennau Cymru a Lloegr) is the Non-ministerial government department that regulates registered
- Unit Trusts. The trust has proved to be such a flexible concept that it has proved capable of working as an investment vehicle: the unit trust. A unit trust is a form of collective investment constituted under a trust deed
- Pension Plans. Pension plans are typically set up as a trust, with the employer as settlor, and the employees and their dependents as beneficiaries. A pension is a steady income given to a person upon Retirement, typically in the form of a guaranteed annuity. Employment is a Contract between two parties, one being the employer and the other being the employee. Employment is a Contract between two parties, one being the employer and the other being the employee.
- Corporate Structures. Complex business arrangements, most often in the finance and insurance sectors, sometimes use trusts among various other entities (e. g. corporations) in their structure.
- Asset Protection. The principle of "asset protection" is for a person to divorce himself or herself personally from the assets he or she would otherwise own, with the intention that future creditors will not be able to attack that money, even though they may be able to bankrupt him or her personally. Asset protection (sometimes also referred to as debtor-creditor law) refers to a set of legal techniques and a body of Statutory and Common law dealing One method of asset protection is the creation of a discretionary trust, of which the settlor may be the protector and a beneficiary, but not the trustee and not the sole beneficiary. In such an arrangement the settlor may be in a position to benefit from the trust assets, without owning them, and therefore without them being available to his creditors. Such a trust will usually preserve anonymity with a completely unconnected name (e. g. "The Teddy Bear Trust"). The above is a considerable simplification of the scope of asset protection. It is a subject which straddles ethical boundaries. Some asset protection is legal and (arguably) moral, while some asset protection is illegal and/or (arguably) immoral. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society A moral is a message conveyed or a lesson to be learned from a story or event Morality (from the Latin la moralitas "manner character proper behavior" has three principal meanings
- Tax Planning. The tax consequences of doing anything using a trust are usually different from the tax consequences of achieving the same effect by another route (if, indeed, it would be possible to do so). In many cases the tax consequences of using the trust are better than the alternative, and trusts are therefore frequently used for tax avoidance. Tax avoidance is the legal utilization of the Tax regime to one's own advantage in order to reduce the amount of tax that is payable by means that are within the law For an example see the "nil-band discretionary trust", explained at Inheritance Tax (United Kingdom). In the United Kingdom, Inheritance Tax was first introduced as a tax on estates in England and Wales over a certain value from 1796 then called legacy succession
- Tax Evasion. In contrast to tax avoidance, tax evasion is the illegal concealment of income from the tax authorities. Trusts have proved a useful vehicle to the tax evader, as they tend to preserve anonymity, and they divorce the settlor and individual beneficiaries from ownership of the assets. This use is particularly common across borders — a trustee in one country is not necessarily bound to report income to the tax authorities of another. This issue has been addressed by various initiatives of the OECD.
- Money Laundering. Money laundering is the practice of engaging in financial Transactions in order to conceal the Identity, source and/or destination of Money, The same attributes of trusts which attract legitimate asset protectors also attract money launderers. Many of the techniques of asset protection, particularly layering, are techniques of money-laundering also, and innocent trustees such as bank trust companies can become involved in money-laundering in the belief that they are furthering a legitimate asset protection exercise, often without raising suspicion. A trust company is a Corporation, especially a Commercial bank, organized to perform the Fiduciary functions of trusts and agencies See also Anti Money Laundering and Financial Action Task Force on Money Laundering. Anti-money laundering (AML is a term mainly used in the Financial and Legal industries to describe the legal controls that require Financial institutions The Financial Action Task Force on Money Laundering (FATF also known by its French name Groupe d'action financière sur le blanchiment de capitaux (GAFI is an
- Co-ownership. A concurrent estate or co-tenancy is a concept in Property law, particularly derived from the Common law of Real property, which describes Ownership of property by more than one person is facilitated by a trust. In particular, ownership of a matrimonial home is commonly effected by a trust with both partners as beneficiaries and one, or both, owning the legal title as trustee.
- Constructive trust. A constructive trust is an equitable remedy resembling a trust imposed by a Court to benefit a party that has been wrongfully deprived of its rights due to either Unlike an express or implied trust, a constructive trust is not created by an agreement between a settlor and the trustee. A constructive trust is an equitable remedy resembling a trust imposed by a Court to benefit a party that has been wrongfully deprived of its rights due to either A constructive trust is imposed by the law as an "equitable remedy. " This generally occurs due to some wrongdoing, where the wrongdoer has acquired legal title to some property and cannot in good conscience be allowed to benefit from it. A constructive trust is, essentially, a legal fiction. In the Common law tradition legal fictions are suppositions of fact taken to be true by the Courts of Law, but which are not necessarily For example, a court of equity recognizing a plaintiff's request for the equitable remedy of a constructive trust may decide that a constructive trust has been "raised" and simply order the person holding the assets to the person who rightfully should have them. The constructive trustee is not necessarily the person who is guilty of the wrongdoing, and in practice it is often a bank or similar organization.
- Express trust. Where property is passed to a person but no gift is made it is held for the owner this is the Resulting trust; where property should for some reason of public policy or fairness An express trust arises where a settlor deliberately and consciously decides to create a trust, over his or her assets, either now, or upon his or her later death. In these cases this will be achieved by signing a trust instrument, which will either be a will or a trust deed. In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property Almost all trusts dealt with in the trust industry are of this type. They contrast with resulting and constructive trusts. The intention of the parties to create the trust must be shown clearly by their language or conduct. For an express trust to exist, there must be certainty to the objects of the trust and the trust property. In the USA Statute of Frauds provisions require express trusts to be evidenced in writing if the trust property is above a certain value, or is real estate. The statute of frauds refers to the requirement that certain kinds of Contracts be made in writing and signed
- Fixed trust. In a fixed trust, the entitlement of the beneficiaries is fixed by the settlor. The trustee has little or no discretion. Common examples are:
- a trust for a minor ("to x if she attains 21");
- a life interest ("to pay the income to x for her lifetime"); and
- a remainder ("to pay the capital to y after the death of x")
- Hybrid trust. Income, refers to consumption opportunity gained by an entity within a specified time frame which is generally expressed in monetary terms A hybrid trust combines elements of both fixed and discretionary trusts. In a hybrid trust, the trustee must pay a certain amount of the trust property to each beneficiary fixed by the settlor. But the trustee has discretion as to how any remaining trust property, once these fixed amounts have been paid out, is to be paid to the beneficiaries.
- Implied trust. An implied trust, as distinct from an express trust, is created where some of the legal requirements for an express trust are not met, but an intention on behalf of the parties to create a trust can be presumed to exist. A resulting trust may be deemed to be present where a trust instrument is not properly drafted and a portion of the equitable title has not been provided for. In such a case, the law may raise a resulting trust for the benefit of the grantor (the creator of the trust). In other words, the grantor may be deemed to be a beneficiary of the portion of the equitable title that was not properly provided for in the trust document.
- Incentive trust. In American estate planning parlance an incentive trust is a trust designed to encourage or discourage certain behaviors by using distributions of trust income or principal A trust that uses distributions from income or principal as an incentive to encourage or discourage certain behaviors on the part of the beneficiary. The term "incentive trust" is sometimes used to distinguish trusts that provide fixed conditions for access to trust funds from discretionary trusts that leave such decisions up to the trustee.
- Inter vivos trust. A living trust ( inter vivos trust) is a trust created during a person's lifetime A settlor who is living at the time the trust is established creates an inter vivos trust.
- Irrevocable trust. In contrast to a revocable trust, an irrevocable trust is one in which the terms of the trust cannot be amended or revised until the terms or purposes of the trust have been completed. Although in rare cases, a court may change the terms of the trust due to unexpected changes in circumstances that make the trust uneconomical or unwieldy to administer, under normal circumstances an irrevocable trust cannot be changed by the trustee or the beneficiaries of the trust.
- Offshore trust. An offshore trust is simply a conventional trust that is formed under the Laws of an offshore jurisdiction. Strictly speaking, an offshore trust is a trust which is resident in any jurisdiction other than that in which the settlor is resident. This article deals with personal residence in a given place For other uses see Residency (disambiguation and Resident. However, the term is more commonly used to describe a trust in one of the jurisdictions known as offshore financial centers or, colloquially, as tax havens. An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing A tax haven is a place where certain Taxes are levied at a low rate or not at all Offshore trusts are usually conceptually similar to onshore trusts in common law countries, but usually with legislative modifications to make the more commercially attractive by abolishing or modifying certain common law restrictions. By extension, "onshore trust" has come to mean any trust resident in a high-tax jurisdiction.
- Private and public trusts. A private trust has one or more particular individuals as its beneficiary. By contrast, a public trust (also called a charitable trust) has some charitable end as its beneficiary. A charitable trust is a trust established for charitable purposes and is a more specific term than " charitable organisation " In order to qualify as a charitable trust, the trust must have as its object certain purposes such as alleviating poverty, providing education, carrying out some religious purpose, etc. The permissible objects are generally set out in legislation, but objects not explicitly set out may also be an object of a charitable trust, by analogy. Charitable trusts are entitled to special treatment under the law of trusts and also the law of taxation.
- Protective trust. Here the terminology is different between the UK and the USA:
- In the UK, a protective trust is a life interest which terminates on the happening of a specified event such as the bankruptcy of the beneficiary or any attempt by him to dispose of his interest. They have become comparatively rare.
- In the USA, a protective trust is a type of trust that was devised for use in estate planning. (In another jurisdiction this might be thought of as one type of asset protection trust. Asset protection (sometimes also referred to as debtor-creditor law) refers to a set of legal techniques and a body of Statutory and Common law dealing ) Often a person, A, wishes to leave property to another person B. A however fears that the property might be claimed by creditors before A dies, and that therefore B would receive none of it. A could establish a trust with B as the beneficiary, but then A would not be entitled to use of the property before they died. Protective trusts were developed as a solution to this situation. A would establish a trust with both A and B as beneficiaries, with the trustee instructed to allow A use of the property until they died, and thereafter to allow its use to B. The property is then safe from being claimed by A's creditors, at least so long as the debt was entered into after the trust's establishment. This use of trusts is similar to life estates and remainders, and are frequently used as alternatives to them. A life estate is a concept used in Common law and Statutory law to designate the ownership of land for the duration of a person's life A remainder in Property Law is a Future interest given to a person (who is referred to as the transferree or Remainderman) that is capable of becoming possessory
- Purpose trust. A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non- charitable purpose of some kind Or, more accurately, non-charitable purpose trust (all charitable trusts are purpose trusts). Generally, the law does not permit non-charitable purpose trusts outside of certain anomalous exceptions which arose under the eighteenth century common law (and, arguable, Quistclose trusts). A Quistclose trust is a specific type of trust in Common law jurisdictions that arises between a debtor and a creditor when the debtor undertakes to use Certain jurisdictions (principally, offshore jurisdictions) have enacted legislation validating non-charitable purpose trusts generally. An offshore financial centre (or OFC) although not precisely defined is usually a low- Tax, lightly Regulated jurisdiction which specializes in providing
- Resulting trust. A resulting trust (from the Latin 'resultare' meaning 'to jump back' is a situation where property "results" back to the transferor A resulting trust is a form of implied trust which occurs where (1) a trust fails, wholly or in part, as a result of which the settlor becomes entitled to the assets; or (2) a voluntary payment is made by A to B in circumstances which do not suggest gifting. B becomes the resulting trustee of A's payment.
- Revocable trust. A trust of this kind can be amended, altered or revoked by its settlor at any time, provided the settlor is not mentally incapacitated. Revocable trusts are becoming increasingly common in the United States as a substitute for a will to minimize administrative costs associated with probate and to provide centralized administration of a person's final affairs after death. This article is about the radio and television stations For other uses see Will.
- Secret trust. A secret trust is a trust which arises when property is left to a person (the Legatee) under a will on the understanding that they will hold the property A post mortem trust constituted externally from a will but imposing obligations as a trustee on one, or more, legatees of a will.
- Simple trust. A bare trust (sometimes referred to as a simple trust) is a trust in which the beneficiary has a Right to both Income and capital This term is only used in the USA, but in that jurisdiction has two distinct meanings:
- In a simple trust the trustee has no active duty beyond conveying the property to the beneficiary at some future time determined by the trust. This is also called a bare trust. All other trusts are special trusts where the trustee has active duties beyond this.
- A simple trust in Federal income tax law is one in which, under the terms of the trust document, all net income must be distributed on an annual basis.
- Special trust. In the USA, a special trust contrasts with a simple trust (see above).
- A Spendthrift trust is a trust put into place for the benefit of a person who is unable to control their spending. A spendthrift trust is a trust that is created for the benefit of a person (often because he or she is unable to control spending that gives an independent Trustee It gives the trustee the power to decide how the trust funds may be spent for the benefit of the beneficiary.
- Standby Trust or Pourover Trust. The trust is empty at creation during life and the will transfers the property into the trust at death. This is a statutory trust.
- Testamentary trust or Will Trust. A testamentary trust (sometimes referred to as a will trust) is a trust which arises upon the death of the Testator, usually under his or her A trust created in an individual's will is called a testamentary trust. In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property Because a will can become effective only upon death, a testamentary trust is generally created at or following the date of the settlor's death. Death is the termination of the biological functions that define living Organisms It refers both to a specific
- Unit trust. A unit trust is a trust where the beneficiaries (called unitholders) each possess a certain share (called units) and can direct the trustee to pay money to them out of the trust property according to the number of units they possess. A unit trust is a form of collective investment constituted under a trust deed A unit trust is a vehicle for collective investment, rather than disposition, as the person who gives the property to the trustee is also the beneficiary. A collective investment scheme is a way of investing money with other people to participate in a wider range of investments than those feasible for most individual investors 
- Appointment. In trust law, "appointment" often has its everyday meaning. It is common to talk of "the appointment of a trustee", for example. However, "appointment" also has a technical trust law meaning, either:
- the act of appointing (i. e. giving) an asset from the trust to a beneficiary (usually where there is some choice in the matter — such as in a discretionary trust); or
- the name of the document which gives effect to the appointment.
- The trustee's right to do this, where it exists, is called a power of appointment. A power of appointment is a term most frequently used in the Law of wills to describe the ability of the Testator (the person writing the will to select Sometimes, a power of appointment is given to someone other than the trustee, such as the settlor, the protector, or a beneficiary.
- Protector. In Trust law, a protector is a person appointed under the Trust instrument to direct or restrain the Trustees in relation to their administration of the A protector may be appointed in an express, inter vivos trust, as a person who has some control over the trustee — usually including a power to dismiss the trustee and appoint another. The legal status of a protector is the subject of some debate. No-one doubts that a trustee has fiduciary responsibilities. fiduciary duty is a legal relationship of confidence or trust between two or more parties most commonly a fiduciary or Trustee and a principal If a protector also has fiduciary responsibilities then the courts — if asked by beneficiaries — could order him or her to act in the way the court decrees. However, a protector is unnecessary to the nature of a trust — many trusts can and do operate without one. Also, protectors are comparatively new, while the nature of trusts has been established over hundreds of years. It is therefore thought by some that protectors have fiduciary duties, and by others that they do not. The case law has not yet established this point. Case law' (also known as decisional law or judicial precedent) is that body of reported Judicial opinions in countries that have Common law
- Trustee. A person (either an individual, a corporation or more than one of either) who administers a trust. A trustee is considered a fiduciary and owes the highest duty under the law to protect trust assets from unreasonable loss for the trust's beneficiaries. fiduciary duty is a legal relationship of confidence or trust between two or more parties most commonly a fiduciary or Trustee and a principal
- ^ (Gaudiosi 1988, p. 1241)
- ^ (Gaudiosi 1988)
- ^ (Gaudiosi 1988, pp. 1237-40)
- ^ (Gaudiosi 1988, p. 1246)
- ^ (Gaudiosi 1988, pp. 1246-7)
- ^ (Gaudiosi 1988, p. 1247)
- ^ (Hudson 2003, p. 32)
- ^ (Gaudiosi 1988, pp. 1244-5)
- ^ http://www.britannica.com/ebc/article-9061389
- ^ Roy Goode, Commercial Law (2nd ed. Sir Royston Miles "Roy" Goode QC (born April 6, 1933) is a preeminent academic commercial lawyer in the United Kingdom. )
- ^ See for example T Choithram International SA and others v Pagarani and others  2 All ER 492
- ^ For example, in England, trusts over land must be evidenced in writing under s. T Choithram International SA v Pagarani and Others 2 All ER 492 was a decision of the Privy Council on appeal from the British Virgin Islands in relation 56 of the Law of Property Act 1925
- ^ Kam Fan Sin, The Legal Nature of the Unit Trust, Clarendon Press, 1998.
- Gaudiosi, Monica M. (April 1988), "The Influence of the Islamic Law of Waqf on the Development of the Trust in England: The Case of Merton College", University of Pennsylvania Law Review 136 (4): 1231-1261
- Hudson, A. The University of Pennsylvania Law Review is a scholarly journal focusing on legal issues published by an organization of second and third year J (2003), Equity and Trusts (3rd ed. ), Cavendish Publishing, ISBN 1-85941-729-9
In specific jurisdictions
- Knight v Knight
- Blind trust
- Charitable trust
- Foundation (charity)
- Inter vivos trust
- Rabbi trust
- Testamentary trust
- Trusts and estates
- STEP (Society of Trust and Estate Practitioners), the international professional association for the trust industry. Introduction Most law regulating the creation and administration of trusts in the United States is now statutory at the state level Trust law in civil law jurisdictions Most Jurisdictions that have the trust concept do so because their legal systems are based on the Trust law in Australia In Australia trust law is under the jurisdiction of state governments and the Legislation often interacts with Corporations Trust law in England and Wales is the original and foundational Law of Trusts in the world and a unique contribution of English law to the Legal system Knight v Knight (1840 3 Beav 148 is a Landmark case in English equity law. A blind trust is a trust in which the fiduciaries, namely the Executors or those who have been given Power of attorney, have full discretion over A charitable trust is a trust established for charitable purposes and is a more specific term than " charitable organisation " A foundation is a legal categorization of Nonprofit organizations. A living trust ( inter vivos trust) is a trust created during a person's lifetime In the United States a Rabbi trust is a type of trust used by businesses or other entities to defer the taxability to the person or entity receiving (the Payee In law a settlor is a person who settles property on express trust for the benefit of beneficiaries A testamentary trust (sometimes referred to as a will trust) is a trust which arises upon the death of the Testator, usually under his or her The law of trusts and estates is generally considered the body of Law which governs the management of personal affairs and the Disposition of Property of STEP (the Society of Trust and Estate Practitioners) was founded by George Tasker in 1991 and is the international professional body for workers in the trust
Re Endacott Re Astor's Settlement Chainickolson V. Bank of Ireland
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