What is a Trust?

Basically a Trust involves the transfer of property to be held by one party (Trustee) for the benefit of another party (Beneficiary). Moreover, a Trust is a fiduciary (duty of trust & loyalty) relationship with respect to property (res) whereby the Trustee holds legal title to the trust property for the benefit of the persons (beneficiaries) who have an equitable ownership in the property.




What is a Living Trust?

A living trust (often referred to as an inter vivos trust) is a type of trust creating during the grantor’s lifetime. Today many people use this type of trust to dispose of their assets (much like a Will) which in effect disposes of the Trustor’s property at the time of death. The primary benefit of disposing of the property by trust is that it avoids the need for formal court supervised probate proceedings, thereby effectively transferring the assets of the trust to the intended beneficiaries with minimal costs and expenses in time and money.



What are the elements of the creation of a Valid Trust?

At Common law the following are required for the creation of a valid trust:

Settlor/Grantor/Trustor - The person who creates the Trust.

Trustee - The person who manages the Trust Property.

Ascertainable human beneficiary – The person or persons who receive the benefit of the property of the Trust.

Trust Property (Res) - The Property must be transferable ascertainable property.

Intention to Create a trust – A Declaration of Trust with the manifestation of present intent to transfer property into the trust.

Valid Trust Purpose – Can not create a trust for an illegal purpose, a trust that is against public policy, violates the rules against perpetuities, or has statutory restrictions.