trust
The Definition of a Trust trusts is a device in which rights (personal or proprietary) are held by one person on behalf of another some trusts are created by court. These are constructive trusts. person creating the trust: settlor person holding rights: trustee person for whom those rights are held: beneficiary
Lord Coke's Definition
"a confidence reposed in some other, not issuing out of land but as a thing collateral thereto, annexed in privity to the estate of the land, and to the person touching the land, for which cestui sue trust has no remedy but by subpoena in the Chancery."
Sir Arthur Underhill's Definition (in Underhill and Hayton, Law of Trusts and Trustees)
"an equitable obligation binding a person (called a trustee) to deal with property (called trust property) owned by him as a separate fund, distinct from his own private property, for the benefit of persons (called beneficiaries or, in old cases, cestuis que trust) of whom he may himself be one and any one of whom may enforce the obligation."
Why create a trust? interested recipient of rights could be incapable of managing them (ex. children) flexibility enjoyment of rights can be split on a plane of time
Principal Uses of Trusts Today
To enable property, particularly land to be held for persons who can not hold it themselves. The legal title to land can not be vested in a minor, but it can be held on trust for one. Legislature has adopted this, providing that a purported conveyance of a legal estate in land to a minor operates as declaration that the land is held in trust for that minor.
To enable persons to make provisions for dependants privately. Most obvious examples: provisions made for an illegitimate child for mistress. These provisions can be made during the persons lifetime without publicity. A will becomes a public document once probate is obtained and can then be inspected by the public. A trust created other than by will will however not be public provided
Lord Coke's Definition
"a confidence reposed in some other, not issuing out of land but as a thing collateral thereto, annexed in privity to the estate of the land, and to the person touching the land, for which cestui sue trust has no remedy but by subpoena in the Chancery."
Sir Arthur Underhill's Definition (in Underhill and Hayton, Law of Trusts and Trustees)
"an equitable obligation binding a person (called a trustee) to deal with property (called trust property) owned by him as a separate fund, distinct from his own private property, for the benefit of persons (called beneficiaries or, in old cases, cestuis que trust) of whom he may himself be one and any one of whom may enforce the obligation."
Why create a trust? interested recipient of rights could be incapable of managing them (ex. children) flexibility enjoyment of rights can be split on a plane of time
Principal Uses of Trusts Today
To enable property, particularly land to be held for persons who can not hold it themselves. The legal title to land can not be vested in a minor, but it can be held on trust for one. Legislature has adopted this, providing that a purported conveyance of a legal estate in land to a minor operates as declaration that the land is held in trust for that minor.
To enable persons to make provisions for dependants privately. Most obvious examples: provisions made for an illegitimate child for mistress. These provisions can be made during the persons lifetime without publicity. A will becomes a public document once probate is obtained and can then be inspected by the public. A trust created other than by will will however not be public provided