What Is A Trust Agreement Definition

Trusts are often used as a mechanism for settlors to transfer ownership to family members (or others), while the settlor may continue to retain some control over the property (either by trustee or by choosing the trustee and dictating the terms of the trust). If the grantor does not want the beneficiary to own the property at a later date, it can determine, through the escutling agreement, how ownership of the escum is to be invested and when the property will be distributed to the escum beneficiary. A trust agreement or formal trust deed is usually drafted by a lawyer and identifies the settlor, trust assets, trustee and beneficiaries. A trust provides a mechanism for a person (the „settlor”) to provide property to another person (the „trustee”) for the benefit of a third party (the „beneficiary”) while retaining some form of control over the property. The assets are owned and managed by the trustee. An implied trust is a trust created by an equity court based on the actions or circumstances of the parties. Implied trusts are divided into two categories: resultant and constructive. A resulting trust is implicit in law to elaborate the presumed intentions of the parties, but it does not take into account their express intention. Constructive trust[12] is a legally implied trust to establish justice between the parties, regardless of their intentions. In addition to their fundamental obligation to comply with the terms of the trust, trustees have the following basic obligations: A testamentary trust is created by will and arises after the death of the settlor. An inter vivos trust is created during the life of the settlor through a trust instrument. .