Long Island Injury Lawyer

Trust Law

Posted on 01. Feb, 2010 by Admin in Uncategorized

In legal terms, a trust consists of an arrangement regarding management of property for the use and/or benefit of another party. The managing entity can be in the form of one or more persons or an organization. The property involved, can either be tangible or intangible. The creator of the trust is called the “settlor” while the holders of the property are referred to as the “trustees”. The trustees are legally obligated to adhere to the terms set down in the trust and owe a fiduciary responsibility to the “beneficiaries” (who are beneficial owners of the property stipulated in the trust).

The trust, itself, is governed by its own terms while also adhering to local laws. Therefore, the trustee must follow the terms of both the trust and the laws of that particular jurisdiction. While the term “trust” might immediately bring to mind a “trust fund” in which funds are dispersed to a younger person until they reach a determined age (18 or 21, in some cases) – there are actually many different types of trust.

A Constructive Trust does not involve a situation where the settlor and the trustee have reached an agreement. This form of trust is actually imposed by law – usually in cases where assets have fallen into the wrong hands and it is determined that they should not benefit from those assets. An example of this would be when a court is recognizing the plaintiff’s request for an “equitable remedy” of wrongly held property. The individual(s) holding the property are not always the trustees, in this case. The trustee can be a bank or a similar business concern.

An Express Trust is formed when the settlor sets up a trust, deliberately, that will go into effect before or after their death. This can be put into place by setting up a will or a trust deed. This is the most common trust type, by far. The property that is being dispersed in this type of trust must have been proven to be in existence and lawful ownership must be established. The U.S. Statute of Frauds requires that property valued above a certain amount can only be designated in an express trust if that trust is evidenced in writing.

A Fixed Trust will indicate a fixed amount of assets or other limitations pertaining to the beneficiaries. An example might include a situation whereby the beneficiary will receive a set amount, yearly for the remainder of their life.

Please note that this article is for informational purposes only and is not intended as legal advice.

Additional Legal Site: Florida Probate Lawyer Adrian Philip Thomas, P.A. serving clients in the greater Fort Lauderdale, Florida area.

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