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Created page with "File:lighterstill.jpg *[http://en.wikipedia.org/wiki/18th_century 1780] ==Definition== *1: Property (as money or securities) settled or held in trust ==Description== A ''..."
[[File:lighterstill.jpg]]
*[http://en.wikipedia.org/wiki/18th_century 1780]
==Definition==
*1: Property (as money or securities) settled or held in trust
==Description==
A '''trust (fund)''' is a [[relationship]] whereby [[property]] is held by one party for the benefit of another. A trust is created by a settlor, who transfers property to a trustee. The [https://en.wikipedia.org/wiki/Trustee trustee] holds that property for the trust's beneficiaries. Trusts exist mainly in [https://en.wikipedia.org/wiki/Common_law common law] jurisdictions and similar systems existed since [[Roman]] times.
An owner of property that places property into trust turns over part of his or her bundle of rights to the trustee, separating the property's legal ownership and [[control]] from its equitable ownership and benefits. This may be done for [https://en.wikipedia.org/wiki/Tax_avoidance tax avoidance] 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 [https://en.wikipedia.org/wiki/Self-dealing self-dealing]. Courts can reverse self dealing actions, order profits returned, and impose other [[sanctions]].
The trustee may be either a [[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 [https://en.wikipedia.org/wiki/Deed deed].[https://en.wikipedia.org/wiki/Trust_law]
[[Category: Law]]
*[http://en.wikipedia.org/wiki/18th_century 1780]
==Definition==
*1: Property (as money or securities) settled or held in trust
==Description==
A '''trust (fund)''' is a [[relationship]] whereby [[property]] is held by one party for the benefit of another. A trust is created by a settlor, who transfers property to a trustee. The [https://en.wikipedia.org/wiki/Trustee trustee] holds that property for the trust's beneficiaries. Trusts exist mainly in [https://en.wikipedia.org/wiki/Common_law common law] jurisdictions and similar systems existed since [[Roman]] times.
An owner of property that places property into trust turns over part of his or her bundle of rights to the trustee, separating the property's legal ownership and [[control]] from its equitable ownership and benefits. This may be done for [https://en.wikipedia.org/wiki/Tax_avoidance tax avoidance] 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 [https://en.wikipedia.org/wiki/Self-dealing self-dealing]. Courts can reverse self dealing actions, order profits returned, and impose other [[sanctions]].
The trustee may be either a [[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 [https://en.wikipedia.org/wiki/Deed deed].[https://en.wikipedia.org/wiki/Trust_law]
[[Category: Law]]