Trusts originated as a legal mechanism called a "use" to avoid feudal obligations and hold land for those away from battle. A modern trust involves a settlor transferring legal title of property to a trustee to hold for the benefit of beneficiaries. The trustee holds legal title and owes fiduciary duties to beneficiaries, who hold equitable title. Trusts are created through a written instrument or will and require clear identification of property, beneficiaries, and intent to create a trust. United States trust law is governed at the state level, with many states adopting uniform codes, and is also subject to federal tax law.

1. WHAT ARE “TRUSTS”?

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

3. 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.

4. The modern trust
•Settlor Sets up the trust by transferring legal title
•Trustee Holds legal title
•Beneficiary Holds “equitable title”. Is “equitable owner”.

5. 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.

6. Creation
Typically a trust can be created in the
following ways:
•a written trust instrument created by the settlor and
signed by both the settlor and the trustees
•an oral declaration
•the will of a decedent, usually called a testamentary trust
•a court order (for example in family proceedings).

7. 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 clear class of beneficiaries .
Beneficiaries may include people not born at the date of the trust.
Formalities

8. United states trust law
State law applies to trusts, and the Uniform
Trust Code has 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
may be used for tax avoidance
in certain situations.

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10. For further information visit:
http://margarianlaw.com/
https://en.wikipedia.org/wiki/Trust_law
https://goo.gl/G6cDVx

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