trust
trust n
1 a: a fiduciary relationship in which one party holds legal title to another's property for the benefit of a party who holds equitable title to the property
b: an entity resulting from the establishment of such a relationship see also beneficiary, cestui que trust, corpus; declaration of trust at declaration 4, principal, settlor
◇ Trusts developed out of the old English use. The traditional requirements of a trust are a named beneficiary and trustee (who may be the settlor), an identified res, or property, to be transferred to the trustee and constitute the principal of the trust, and delivery of the res to the trustee with the intent to create a trust. Not all relationships labeled as trusts have all of these characteristics, however. Trusts are often created for their advantageous tax treatment.
accumulation trust: a trust in which principal and income are allowed to accumulate rather than being paid out
◇ Accumulation trusts are disfavored and often restricted in the law.
active trust: a trust in which legal title remains in the trustee who has a duty to act affirmatively (as in exercising control, discretion, and judgment) with regard to the property compare passive trust in this entry
alimony trust: a trust created often in accordance with a separation agreement in which property is transferred to the trust as a source of support for a divorced spouse with a remainder to someone else
bank account trust: totten trust in this entry
business trust: a trust that is created for the purpose of making profit and that is usu. characterized by some kind of commercial activity, transferable certificates of interest, existence continuing after the death of beneficiaries, limited liability, legal title in the hands of trustees, and officers having duties of management – called also common-law trust, Massachusetts trust;
◇ A trust that qualifies as a business trust is eligible for bankruptcy protection under chapter 13 of the Bankruptcy Code.
by·pass trust: a trust in which a spouse leaves his or her estate upon death to a trust naming the surviving spouse as beneficiary usu. with remainders to children or other descendants – called also bypass shelter trust, credit shelter trust, shelter trust;
◇ The purpose of a bypass trust is to reduce the surviving spouse's taxable estate. Such trusts do not qualify for the marital deduction.
charitable lead trust /-'lēd-/: a trust in which a charity is named as the beneficiary for a period of time after which named individuals succeed as beneficiaries
charitable remainder annuity trust: a charitable remainder trust in which the named beneficiaries receive a fixed payment of not less than five percent of the fair market value of the original principal over the course of a specified period after which the remaining principal passes to charity
charitable remainder trust: a trust in which individuals are named as beneficiaries to receive income for a period of time (as the lifetimes of the beneficiaries) after which the principal passes to charity
◇ Charitable remainder trusts qualify for tax exemptions under section 664 of the Internal Revenue Code.
charitable remainder uni·trust /-'yü-nə-ˌtrəst/: a charitable remainder trust in which the named beneficiaries receive payments of a fixed percentage and not less than five percent of the value of the trust assets as determined annually for a specified period after which the remainder passes to charity
charitable trust: a trust created for the purpose of performing charity or providing social benefits
◇ Unlike most trusts, a charitable trust does not require definite beneficiaries and may exist in perpetuity.
Clif·ford trust /'kli-fərd-/: a grantor trust lasting at least ten years with income payable to a beneficiary and principal reverting to the settlor upon termination
◇ Prior to the Tax Reform Act of 1986, a Clifford trust could be used as a tax shelter that diverted income from the settlor, who was in a higher tax bracket, to a beneficiary, often a child, who was in a lower tax bracket. Under the current rules, the settlor is treated as the owner of any portion of a trust in which he or she has a reversionary interest, and therefore taxes are calculated at the settlor's rate.
common–law trust: business trust in this entry
com·plex trust: a trust under which any or all income does not have to be distributed and principal may be distributed compare simple trust in this entry
constructive trust
1: an implied trust imposed by a court to prevent the unjust enrichment of one who has wrongfully obtained (as through fraud or bad faith) title to the property or a property interest of another – called also trust de son tort, trust ex delicto, trust ex maleficio; compare resulting trust in this entry
2: an equitable remedy to prevent unjust enrichment through the imposition of a constructive trust
credit shel·ter trust: bypass trust in this entry
discretionary trust: a trust that gives the trustee authority to exercise his or her discretion in distributing principal or income to the beneficiary
dry trust: passive trust in this entry
executed trust: a trust in which nothing is left to be done by the trustee but preserve the property and execute the purpose of the trust to benefit the beneficiaries
executory trust: a trust in which the settlor or trustee has duties to perform (as securing the property, ascertaining the objects of the trust, or making distributions)
express trust: a trust intentionally created by the settlor; specif: a trust created by a positive act of the settlor and set down in writing that expresses the intention to create a trust, identifies the property to be placed in trust, and names beneficiaries
gen·er·a·tion–skip·ping trust: a trust in which the principal will eventually go to a skip person usu. following payment of income for life to a non-skip person: a trust created by a generation-skipping transfer of property in trust
grantor trust: a trust that is taxed at the settlor's tax rate because the settlor has the power to control the beneficial enjoyment of the trust, retains a reversionary interest in the trust, has administrative powers over the trust, has the power to revoke the trust, or benefits from the income of the trust see also clifford trust in this entry
hon·or·ary trust /'ä-nə-ˌrer-ē-/: a trust that is created for a purpose which is not charitable and that names no specific beneficiary
◇ An honorary trust may be upheld as valid where allowed by statute providing that its purpose (as for the care of an animal or grave) is sufficiently clear. Unlike a charitable trust, however, an honorary trust is subject to the rule against perpetuities.
Illinois land trust: land trust in this entry
implied trust: a trust arising by operation of law when the circumstances of a transaction imply the creation of a trust that is not expressly created by the parties and esp. when a trust is necessary to avoid an inequitable result or to prevent fraud
individual policy pension trust: an insurance trust created as a retirement plan in which individual life insurance policies are purchased for employees and held in trust by the employer to fund the plan
insurance trust: a trust in which the principal consists of an insurance policy or its proceeds
inter vivos trust: a trust that becomes effective during the lifetime of the settlor – called also living trust; compare testamentary trust in this entry
investment trust: a business trust that is a closed-end investment company
involuntary trust: implied trust in this entry; esp: constructive trust in this entry
irrevocable trust: a trust that cannot be revoked by the settlor after its creation except upon the consent of all the beneficiaries
land trust: a trust created to effectuate a real estate ownership arrangement in which the trustee holds legal and equitable title to the property subject to the provisions of a trust agreement setting out the rights of the beneficiaries whose interests in the trust are declared to be personal property – called also Illinois land trust, naked land trust;
living trust: inter vivos trust in this entry
marital deduction trust: a marital trust created in order to qualify for the marital deduction; esp: power of appointment trust in this entry
marital trust: a testamentary trust naming a surviving spouse as the beneficiary see also marital deduction trust and power of appointment trust in this entry
Mas·sa·chu·setts trust /ˌma-sə-'chü-səts-, -zəts-/: business trust in this entry
naked land trust: land trust in this entry
naked trust: passive trust in this entry
nominee trust: a trust created for the purpose of holding property for beneficiaries whose identities are kept secret
oral trust: a trust created by the settlor's spoken statements esp. for the purpose of transferring real property as part of an agreement between the settlor and the trustee
passive trust: a trust or use under which the trustee has no duties to perform: a trust in which legal and equitable titles are merged in the beneficiaries – called also dry trust, naked trust; compare active trust in this entry
pour–over trust: a trust that receives the assets that make up its principal by operation of a testamentary disposition to it usu. of the residue of an estate or from another trust upon the settlor's death
power of appointment trust: a marital trust that provides a surviving spouse with a life estate in property and a power of appointment allowing appointment of the property to the surviving spouse or to his or her estate
◇ A power of appointment trust made in accordance with Internal Revenue Code section 2056(b)(5) qualifies for the marital deduction.
pro·tec·tive trust: a trust that attempts to shield assets from the beneficiaries' creditors by providing that it is within the trustee's discretion to refuse to pay a beneficiary or that a beneficiary forfeits his or her interest in the trust upon a creditor's attempt to reach it
purchase money re·sult·ing trust: a resulting trust arising where not abolished by statute when property is purchased with title in the name of one person but using the money of another
QTIP trust /'kyü-ˌtip-/: a trust to which qualified terminable interest property is transferred for purposes of taking the marital deduction
qualified charitable remainder trust: a trust that is either a charitable remainder annuity trust or a charitable remainder unitrust
real estate investment trust: a business trust similar to a closed-end investment company except that it invests in real estate either as an owner having equity in the property or as a lender holding mortgages on the property
resulting trust: an implied trust based upon the presumed intentions of the parties as inferred from all the circumstances that the party holding legal title to trust property holds it for the benefit of the other compare constructive trust in this entry
revocable trust: a trust over which the settlor has retained the power of revocation
savings bank trust: totten trust in this entry
shelter trust: bypass trust in this entry
simple trust: a trust under which all current income must be distributed and no principal may be distributed
spendthrift trust: a trust that is created for the benefit of a spendthrift who is paid income therefrom and that cannot be reached by creditors to satisfy the spendthrift's debts
tentative trust: totten trust in this entry
testamentary trust: a trust created in a will to be effective upon the settlor's death
Tot·ten trust /'tät-ən-/: a trust created by a deposit in a bank by one person as trustee for another that is revocable until the death of the depositor – called also bank account trust, savings bank trust, tentative trust;
trust de son tort /-də-ˌsōn-'tȯrt, -ˌsȯ -'tȯr/ [Anglo-French de son tort ( desmesne ) from his or her (own) wrongful act]: constructive trust (1) in this entry
trust ex delicto: constructive trust (1) in this entry
trust ex maleficio: constructive trust (1) in this entry
unit trust: a trust operating as a vehicle for investment whose portfolio consists of long-term bonds that are held to maturity
voting trust: a trust created by the transfer of legal title to shares of stock to a trustee or trustees who exercise the corporate voting rights conferred by ownership of the shares as agreed in the trust instrument
◇ The shareholders transferring legal title to their shares retain the equitable title and continue to receive dividends and other distributions. They also receive certificates as evidence of their interest in the trust, which provides the holder with the rights of a shareholder except for voting rights.
2 a: a combination of firms or corporations formed by an agreement establishing a trust whereby shareholders in the separate corporations exchange their shares for shares representing proportionate interest in the principal and income of the combination and surrender to the trustees the management and operation of the combined firms or corporations
b: a combination or aggregation of business entities formed by any of various means; esp: one that reduces competition or is thought to present a threat of reducing competition compare antitrust
3 a: a charge or duty imposed in faith or confidence or as a condition of some relationship
b: something committed or entrusted to one to be used or cared for in the interest of another
no religious test shall ever be required as a qualification to any office or public trust under the United StatesU.S. Constitution art. VI
c: the condition, obligation, or right of one to whom something is confided: responsible charge or office
acted diligently in carrying out his trust as chairman of the board
a child committed to their trust
in trust: in a trust
property held in trust for the children

Merriam-Webster’s Dictionary of Law. . 1996.

trust
I (combination of businesses) noun association, cartel, combination of companies, combine, consortium, corporation, merger, monopolistic organization, monopoly, pool, syndicate associated concepts: antitrust laws, combination in restraint of trade II (confidence) noun assurance, belief, certainty, confident expectation, conviction, credence, credulity, dependence, faith, fides, fiducia, reassurance, reliance, sureness, trustworthiness associated concepts: breach of trust, office of trust, public trust III (custody) noun care, charge, control, duty, guardianship, holding, keeping, management, obligation, possession and control, power over, protection, responsibility, safety associated concepts: beneficiary of trust, business trust, cestui que trust, charitable trust, constructive trust, continuing trust, corpus of trust, de facto trust, declaration of trust, discretionary trust, dormant trust, dry trust, execution of trust, executory trust, express trust, implied trust, parol trust, presumptive trust, principal of a trust, private trust, residuary trust, resultant trust, revocable trust, shifting trust, special trust, spendthrift trust, totten trust, trust agreement, trust certificate, trust company, trust deed, trust estate, trust funds, trust mortgage, trust receipts foreign phrases:
- Fides est obligatio conscientiae alicujus ad intentionem alterius. — A trust is an obligation of conscience of one to the wishes of another
IV verb accept, accredit, assume, be confident, confide, confidere, count upon, credere, credit, depend upon, expect, feel sure, give credence to, give credit to, have faith in, have no doubt, have no reservations, hope, lean on, mandare, place reliance in, presume, put confidence in, rely on, swear by, take, take for granted V index agency (legal relationship), cartel, charge (custody), commit (entrust), commitment (responsibility), confederacy (compact), confidence (faith), consortium (business cartel), credence, credulity, entrust, expectation, faith, league, loan, mission, office, pool, prospect (outlook), protégé, reliance, rely, security (safety)

Burton's Legal Thesaurus. . 2006


trust
It is generally considered appropriate to establish an occupational pension scheme by way of a trust in order to separate the scheme assets (contributions) from those of the employer (company) and to ensure that the company does not become liable for the scheme. The trust will be established by way of a trust deed, and the assets will be the responsibility of the trustees (either individuals or a corporate trustee) who must act in the best interests of the beneficiaries i.e. the scheme members and pensioners.

Easyform Glossary of Law Terms. — UK law terms.


trust
n.
(1) Confidence that someone will act in a particular way; firm belief in someone’s reliability.
(2) A legal arrangement in which one person or company (the trustee) holds title to property that is intended to benefit someone else (the beneficiary); the trustee has a fiduciary obligation to administer the trust’s assets and distribute its income to benefit the beneficiary or beneficiaries.
(3) An organization managed by a trustee.
(4) A company or group of companies that attempts to control a market or create a monopoly.
v.
To believe in someone’s or something’s reliability, ability, or honesty.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


trust
an institution, developed in England by the Court of Chancery, whereby ownership of property is vested in one person (called a trustee) in order that the property be held for the benefit of another person (called a beneficiary). Any property, real or personal, may be held in trust, although in English law, if the trust is other than a simple trust, if land is to be so held the form of trust is required by statute to be either a strict settlement or a trust for sale and conversion. Trusts for sale are now rare since all trusts of land are united in a single regime under the Trusts of Land and Appointment of Trustees Act 1996. Trusts may be classified in a number of ways: they may be express trusts, created by act of the settlor, to give effect to his intentions as expressed in the trust instrument; they may be implied or resulting trusts, where the law implies a trust to give effect to the intentions of the settlor that are not explicitly expressed; or they may be constructive trusts, where the court imposes a trust on the legal owner of property where it feels, in the interests of equity and good conscience, that the beneficial interest should be enjoyed by someone else.
Express trusts may be public trusts or private trusts. Public trusts are trusts established for the satisfaction of some purpose for the benefit of the public or a section of the public; under English law, such purpose trusts are void unless they are charitable (See charity) (although this is not the case with some trust systems – mainly offshore trusts). Trusts may also be classified as to whether they are simple trusts (where the trustees have no active duties to perform, their sole function being to hold the legal title for the beneficiaries) or special trusts, where the trustees manage the trust property for the benefit of the beneficiaries and the satisfaction of their beneficial interests. Special trusts may be either fixed trusts or discretionary trusts; a fixed trust is one in which each beneficiary has a fixed and certain interest under the trust, which interest gives rise to rights that may be enforced against the trustees; an example of a fixed trust is where property is limited to X and Y on trust for A for life with remainder to B absolutely. Both A and B, because of their particular interests, have rights to income and capital respectively that are exercisable against the trustees. In contrast, a discretionary trust is one where the trustees have a discretion to exercise in deciding whether the beneficiaries shall receive what, if any, part of the trust property. Such trusts are usually coupled with a power so that the beneficiaries have no interest under the trust unless and until the discretion or power is exercised in their favour. An example would be where property is limited to X and Y on trust for such of the children of Z as X and Y should in their absolute discretion appoint. See also variation of trusts.

Collins dictionary of law. . 2001.


trust
An arrangement under which one person, a trustee, manages property for a beneficiary. The person who creates the trust is called the settlor, trustor, or grantor. There are many kinds of trusts, some created during the settlor's lifetime and some at death. Trusts are used for, among other things, avoiding probate court proceedings, saving on estate tax, providing quality management of assets, and keeping money out of the hands of improvident beneficiaries. (See also: living trust, testamentary trust)
Category: Wills, Trusts & Estates → Estates, Executors & Probate Court

Nolo’s Plain-English Law Dictionary. . 2009.

trust
A collection of rights, obligations and assets. A trust is not a legal person. There are many different types of trusts and they may be created:
• By statute (statutory trusts).
• Intentionally by an act of the settlor who sets up the trust (express trusts).
• Implicitly from the intention of the settlor (resulting or implied trusts).
• By operation of law (constructive trusts).
The key characteristic of a trust is that it permits the separation of legal ownership and beneficial interest: the trustees become the owners of the trust property as far as third parties are concerned and the persons with a beneficial interest in the trust property are entitled to expect that the trustees will manage the trust property for their benefit.
England, Wales
A trust is a legal relationship created (in lifetime, or on death) by a settlor when assets are placed under the control of a trustee for the benefit of a beneficiary, or for a specified purpose.
A trust has the following characteristics:
••The trust assets constitute a separate fund and are not a part of the trustee's own estate.
• Legal title to the trust assets stands in the name of the trustee, or in the name of another person on behalf of the trustee.
••The trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon him by law.
• The reservation by the settlor of certain rights and powers, and the fact that the trustee may himself be a beneficiary, are not necessarily inconsistent with the existence of a trust.
The key characteristic of a trust is that it permits the separation of legal ownership and beneficial interest: the trustees become the owners of the trust property as far as third parties are concerned, and the beneficiaries are entitled to expect that the trustees will manage the trust property for their benefit.
Trusts are either express trusts (that is, a trust created intentionally by an act of the settlor), or trusts imposed by law. There are three types of trust that are imposed by law:
• statutory trusts.
• resulting trusts
• constructive trusts
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


trust
n. Property that is held by one party, the trustee, for the benefit of another, the beneficiary.
The one who supplied the property or consideration for the trust is the settlor.
Trust also encompasses any relationship in which one acts as a fiduciary or guardian for another.
@ blind trust
A trust whereby the settlor places all financial interests under the control of an independent trustee for a period of time, most often in order to avoid the appearance of a conflict of interest.
@ constructive trust
@ involuntary trust
@ constructive or involuntary trust
constructive (involuntary) trust. A trust that is imposed by a court against one who has acquired property by wrongful means, in order to prevent the holder of that property's being unjustly enriched and for the benefit of the rightful owner. No fiduciary relationship is created by this type of trust.
@ discretionary trust
A trust in which the settlor has granted the trustee the discretion to pay to the beneficiary as much of the income or principal as the trustee sees fit. This is the type of trust most often used in estate planning.
@ express trust
@ direct trust
@ express or direct trust
express (direct) trust. A trust set up with an affirmative expression by the settlor (usually in writing) of the purpose of the trust. This is an ordinary trust as distinct from a resulting or constructive one.
@ fixed investment trust
@ generation skipping trust
A trust set up to transfer property to a beneficiary more than one generation removed from the settlor, such as a grandchild.
@ grantor trust
In this type of trust, the settlor retains so much control over the property in trust and/or its income that the settlor is responsible for taxes on that property.
+ grantor trust
n. A trust whose maker retains control over the management of the trust assets and the distribution of its income.
@ inter vivos trust
A trust created and takes effect during the lifetime of the grantor.
@ pourover trust
@ pour-over trust
An inter vivos trust that receives money from another trust or other source or that distributes receipts to another trust.
=>> trust.
@ precatory trust
Trusts created by a will by use of precatory words such as "wish" or some other entreaty rather than specific direction.
See also precatory.
=>> trust.
@ resulting trust
A trust brought about by law when the circumstances in which property is transferred that suggest that it was not the intention of the transferor to give beneficial interest in the property to the transferee.
=>> trust.
@ testamentary trust
A trust created by a will and that comes into existence upon the death of the grantor.
=>> trust.
@ Totten trust
A bank account created by the depositor in trust for another. It is often used to name a successor to an account without the need to write a will. It is also fully revocable.
=>> trust.
@

Webster's New World Law Dictionary. . 2000.


trust
A relationship created at the direction of an individual, in which one or more persons hold the individual's property subject to certain duties to use and protect it for the benefit of others.

Dictionary from West's Encyclopedia of American Law. 2005.


trust
I
A relationship created at the direction of an individual, in which one or more persons hold the individual's property subject to certain duties to use and protect it for the benefit of others.
II A legal device used to manage real or personal property, established by one person (grantor or settlor) for the benefit of another (beneficiary). (See trustee.)

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

trust
n.
   an entity created to hold assets for the benefit of certain persons or entities, with a trustee managing the trust (and often holding title on behalf of the trust). Most trusts are founded by the persons (called trustors, settlors and/or donors) who execute a written declaration of trust which establishes the trust and spells out the terms and conditions upon which it will be conducted. The declaration also names the original trustee or trustees, successor trustees or means to choose future trustees. The assets of the trust are usually given to the trust by the creators, although assets may be added by others. During the life of the trust, profits and, sometimes, a portion of the principal (called "corpus") may be distributed to the beneficiaries, and at some time in the future (such as the death of the last trustor or settlor) the remaining assets will be distributed to beneficiaries. A trust may take the place of a will and avoid probate (management of an estate with court supervision) by providing for distribution of all assets originally owned by the trustors or settlors upon their death. There are numerous types of trusts, including "revocable trusts" created to handle the trustors' assets (with the trustor acting as initial trustee), often called a "living trust" or "inter vivos trust" which only becomes irrevocable on the death of the first trustor; "irrevocable trust," which cannot be changed at any time; "charitable remainder unitrust," which provides for eventual guaranteed distribution of the corpus (assets) to charity, thus gaining a substantial tax benefit. There are also court-decreed "constructive" and "resulting" trusts over property held by someone for its owner. A "testamentary trust" can be created by a will to manage assets given to beneficiaries.

Law dictionary. . 2013.

Synonyms:

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  • Trust — Trust, n. [OE. trust, trost, Icel. traust confidence, security; akin to Dan. & Sw. tr[ o]st comfort, consolation, G. trost, Goth. trausti a convention, covenant, and E. true. See {True}, and cf. {Tryst}.] 1. Assured resting of the mind on the… …   The Collaborative International Dictionary of English

  • Trust — 〈[ trʌ̣st] m. 6〉 Zusammenschluss mehrerer Unternehmungen od. Firmen zu einem Großunternehmen unter Verlust ihrer Selbstständigkeit [engl. <mengl. trust, trost <anord. traust „Vertrauen, Zuversicht“; → Trost] * * * Trust [trast, trʌst ,… …   Universal-Lexikon

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