Trust (equitable obligation) (duhaime) R.

Oerton's Underhill's Law Relating to Trusts & Trustees (London: Butterworths, 1970), age ! de"ines a trust as: #.. an equitable obligation binding a erson (who is $alled a trustee) to deal with ro ert% o&er whi$h he has $ontrol (whi$h is $alled the trust ro ert%), "or the bene"it o" ersons (who are $alled bene"i$iar% or cestui que trust), o" who' he 'a% hi'sel" be one, and an% one o" who' 'a% en"or$e the obligation. (n% a$t or negle$t on the art o" a trustee whi$h is not authori)ed or e*$used b% the ter's o" the trust instru'ent, or b% law, is $alled a brea$h o" trust.# ( legal obligation with res e$t to ro ert% gi&en b% a erson (donor) to another (trustee) to the ad&antage o" a bene"i$iar% Related Terms: +onstru$ti&e ,rust, -is$retionar% ,rust, .* ress ,rust, Resulting ,rust, /e$ret ,rust, / rin0ling ,rust, ,rustee, Bene"i$iar%, 1i*ed ,rust, /ettlor, -onor, +estui 2ue ,rust or +estui 2ue 3se , 3se ( legal obligation gi&en b% a erson $alled the donor or settlor, binding u on the trustee, "or the bene"it o" another erson (the bene"i$iar%, cestui que trust or donee). (n inde endent legal ro$ess that a erson, usuall% $alled a settlor or a donor, $an initiate and on$e started, runs its $ourse to the bene"it o" a bene"i$iar% and as ad'inistered b% a erson o" the settlor's $hoi$e, $alled a trustee, the latter, on$e a ointed, a$$ountable to the bene"i$iar%. ,he ('eri$an authorit%, Scott on Trusts ("or'al $itation: /$ott, (. and 1rat$her, 4., The Law of Trusts, Boston: Little, Brown and +o' an%, 1957, . 61) &er% 'ee0l% ro oses this de"inition (o" an e* ress trust), whi$h leads one to i'agine the length% $o''ittee 'eeting "ro' whi$h it issued: #... a "idu$iar% relationshi with res e$t to ro ert%, sub7e$ting the erson b% who' the title to ro ert% is held to equitable duties to deal with the ro ert% "or the bene"it o" another erson, whi$h arises as a result o" a 'ani"estation o" an intention to $reate it.# ,he trustee 'anages and ad'inisters the ro ert%, a$tual ownershi is shared between the trustee and the bene"i$iar% and all the ro"its go to the bene"i$iar%. ,he word "idu$iar% $an be used to des$ribe the res onsibilities o" the trustee towards the bene"i$iar%. 4hen a erson dies, their assets are held in trust until the% $an be distributed. ,hus, a will "or's a trust ($alled a testa'entar% trust) but trusts $an be "or'ed during the li"eti'e o" the settlor in whi$h $ase it is $alled an inter vivos or li&ing trust.

,rusts are "urther subdi&ided into e* ress trusts, statutor% trusts, and resulting or $onstru$ti&e trusts end e&en quist$lose trusts.

Further Reading:

8ntrodu$tion ,o ,he Law o" ,rusts ,rust Law: ,he 9la%ers ,rust Law: 4hen ,hings :et ;ast% +haritable ,rusts +onstru$ti&e and Resulting ,rusts ,rust Law: ,he Big +ases

CATEGORIES AND TOPICS:

,his ter' a lies to the "ollowing $ategories or areas o" law:

,rusts, 4ills, .states and 9robate Law -i$tionar%

3nless otherwise noted, this arti$le was written b% Llo%d -uhai'e, Barrister, /oli$itor, (ttorne% and Law%er (and ;otar% 9ubli$<). 8t is not intended to be legal ad&i$e and %ou would be "oolhard% to rel% on it in res e$t to an% s e$i"i$ situation %ou or an a$quaintan$e 'a% be "a$ing. 8n addition, the law $hanges ra idl% and so'eti'es with little noti$e so "ro' ti'e to ti'e, an arti$le 'a% not be u to date. ,here"ore, this is 'erel% legal in"or'ation designed to edu$ate the reader. 8" %ou ha&e a real situation, this in"or'ation will ser&e as a good s ringboard to get legal ad&i$e "ro' a law%er.