WHAT ARE TRUSTS?

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

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.

The modern trust

Settlor

Sets up the trust by transferring legal title

Trustee

Holds legal title

Beneficiary
owner.

Holds equitable title. Is equitable

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.

Creation
Typically a trust can be created in
the following ways:
a writtentrust instrumentcreated by the settlor and
signed by both the settlor and the trustees
an oral declaration
thewillof a decedent, usually called a
testamentary trust
a court order (for example in family proceedings).

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 clearclassof beneficiaries .
Beneficiaries may include people not born at the date of the
trust.

United states trust law

State lawapplies to trusts, and the
Uniform
Trust Codehas 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

CONTACT US
www.facebook.com/MargarianLaw

801 N. Brand Blvd. Suite 210

Glendale, CA 91203

www.linkedin.com/company/margarian-law
https://www.youtube.com/user/dealerfraudlawyer

Tel. (818) 553-1000

Fax (818) 553-1005

For further information visit:

http://margarianlaw.com/
https://en.wikipedia.org/wiki/Trust_law
https://goo.gl/G6cDVx

Thank you!