What is trust

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WHAT ARE TRUSTS?
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Table of content

• History of trust.
• The modern trust
• Legal title (Ownership)
• Creation
• Formalities
• US trust law
• Our contacts

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• History of trust.
• Started life as the Use (Use was created to
  avoid feudal incidents, to hold land whilst men
  were away in battle)
• An institution of Chancery. (The body of law
  developed by Chancery is called EQUITY. 

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The modern trust

• Settlor Sets up the trust by transferring legal
  title
• Trustee Holds legal title
• Beneficiary Holds equitable title. Is
  equitable owner.

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Legal title (Ownership)
A property right Can be asserted against an
indeterminate category of persons. Imposes
duties on an indeterminate category of persons
not to interfere. Personal right (right in
personam) Can be asserted against limited
category of persons. Imposes duties on specific
persons.
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Creation

• Typically a trust can be created in the following
  ways
• a written trust instrument created by the settlor
  and signed by both the settlor and the trustees
• an oral declaration
• the will of a decedent, usually called a
  testamentary trust
• a court order (for example in family proceedings).

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Formalities
Intention There must be a clear intention to
create a trust
Subject Matter The property subject to the trust
must be clearly identified. One may not, for
example state, settle "the majority of my
estate", as the precise extent cannot be
ascertained. Trust property may be any form of
specific property, be it real or personal,
tangible or intangible. 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.
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 .
Beneficiaries may include people not born at the
date of the trust.
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United states trust law
State law applies to trusts,
and the Uniform Trust Code has been enacted
by the legislatures in many states. In
addition, federal law may affect the structure
and creation of trusts. The common law of
trusts is summarized in the Restatements of
the Law. In the United States the tax law
allows trusts to be taxed as corporations,
partnerships, or not at all depending on the
circumstances, although trusts may be used
for tax avoidance  in certain situations.
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CONTACT US
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91203 Tel. [phone]Fax [phone]
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For further information visit
http//margarianlaw.com/ https//en.wikipedia.org
/wiki/Trust_law https//goo.gl/G6cDVx
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