Trust

Property given to a trustee to manage for the benefit of a third person. Generally the beneficiary gets interest and dividends on the trust assets for a set number of years. An agreement under which one person transfers title to specific property to another who agrees to hold or manage it for the benefit of a third person.

An equitable right, title or interest in property, real or personal, distinct from its legal ownership; or it is a personal obligation for paying, delivering or performing anything, where the person trusting has no real. right or security, for by, that act he confides altogether to the faithfulness of those intrusted. This is its most general meaning, and includes deposits, bailments, and the like. In its more technical sense, it may be defined to be an obligation upon a person, arising out of a confidence reposed in him, to apply property faithfully, and according to such confidence. 2. Trusts were probably derived from the civil law. The fidei commissum, is not dissimilar to a trust. Trusts are either express or implied. 1st. Express trusts are those which are created in express terms in the deed, writing or will. The terms to create an express trust will be sufficient, if it can be fairly collected upon the face of the instrument that a trust was intended. Express trusts are usually found in preliminary sealed agreements, such as marriage articles, or articles for the purchase of land; in formal conveyances, such as marriage settlements, terms for years, mortgages, assignments for the payment of debts, raising portions or other purposes; and in wills and testaments, when the bequests involve fiduciary interests for private benefit or public charity,, they may be created even by parol.

- 2d. Implied trusts are those which without being expressed, are deducible from the nature of the transaction, as matters of intent; or which are superinduced upon the transaction by operation of law, as matters of equity, independently of the particular intention of the parties.

The most common form of an implied trust is where property or money is delivered by one person to another, to be by the latter delivered to a third person. These implied trusts greatly extend over the business and pursuits of men: a few examples will be given.

When land is purchased by one man in the name of another, and the former pays the consideration money, the land will in general be held by the grantee in Trust for the person who so paid the consideration money.

When real property is purchased out of partnership funds, and the title is taken in the name of one of the partners, he will hold it in trust for all the partners.

When a contract is made for the sale of land, in equity the vendor is immediately deemed a trustee for the vendee of the estate; and the vendee, a trustee for the vendor of the purchase money; and by this means there is an equitable conversion of the property.
   

This entry contains material from Bouvier's Legal Dictionary, a work published in the 1850's.

TRUST, BYPASS - Also called a marital life estate or an A-B trust. A trust designed to help couples with combined assets over $600,000 save money on estate taxes. A bypass trust allows each member of a couple to use the $600,000 estate tax exemption.

TRUST, SPENDTHRIFT - A trust designed to keep money out of the hands of creditors. Often established to protect someone who is incapable of managing his or her financial affairs.

TRUST, TESTAMENTARY - A trust created by the provisions in a will. Typically comes into existence after the writer of the will dies.

TRUST, TOTTEN - A bank account in your name for which you name a beneficiary. Upon the death of the named holder of the account the money transfers automatically to the beneficiary.

Property given by a person called the donor or settlor, to a fiduciary; can be used to describe the responsibilities of the beneficiary. - (read more on Trust)
  

1. An entity that holds assets for the benefit of certain other personsor entities. The person holding legal title or interest, who has responsibilityfor the assets and distribution of the assets or distribution of the incomegenerated by such assets, is the trustee. The beneficiary is the person forwhose benefit the trust is created. 2. Any relationship in which one acts asguardian or fiduciary in relation to another's property. Thus, a deposit ofmoney in a bank is a trust, or the receipt of money to be applied to aparticular purpose or to be paid to another is a trust.