what if there was never any english settlers that they were settlors. Trust law From Wikipedia, the free encyclopedia For other uses of the word trust, see Trust (disambiguation). In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another. A trust is created by a settlor, who transfers some or all of his or her property to a trustee. The trustee holds that property for the trusts beneficiaries. Trusts have existed since Roman times and have become one of the most important innovations in property law.[1] An owner placing property into trust turns over part of his or her bundle of rights to the trustee, separating the propertys legal ownership and control from its equitable ownership and benefits. This may be done for tax reasons or to control the property and its benefits if the settlor is absent, incapacitated, or dead. Trusts are frequently created in wills, defining how money and property will be handled for children or other beneficiaries. The trustee is given legal title to the trust property, but is obligated to act for the good of the beneficiaries. The trustee may be compensated and have expenses reimbursed, but otherwise must turn over all profits from the trust properties. Trustees who violate this fiduciary duty are self dealing. Courts can reverse self dealing actions, order profits returned, and impose other sanctions. The trustee may be either an individual, a company, or a public body. There may be a single trustee or multiple co-trustees. The trust is governed by the terms under which it was created. In most jurisdictions, this requires a contractual trust agreement or deed. Overview[edit] Property of any sort may be held in a trust. The uses of trusts are many and varied, for both personal and commercial reasons, and trusts may provide benefits in estate planning, asset protection, and taxes. Living trusts may be created during a persons life (through the drafting of a trust instrument which is filed in a court) or after death in a will. In a relevant sense, a trust can be viewed as a generic form of a corporation where the settlors (investors) are also the beneficiaries. This is particularly evident in the Delaware business trust, which could theoretically, with the language in the governing instrument, be organized as a cooperative corporation, limited liability corporation, or perhaps even a nonprofit corporation,[2]:475–6 although traditionally the Massachusetts business trust has been commonly used. One of the most significant aspects of trusts is the ability to partition and shield assets from the trustee, multiple beneficiaries, and their respective creditors (particularly the trustees creditors), making it bankruptcy remote, and leading to its use in pensions, mutual funds, and asset securitization[2] as well protection of individual spendthrifts through the spendthrift trust. en.wikipedia.org/wiki/Trust_law
Posted on: Tue, 10 Jun 2014 04:43:01 +0000
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