TRUST & TREASURY UNIT III

A special relationship of trust and confidence

(a)  

A person who establishes a trust & Owner of the property, transfer the property to the trust

(a)  

Responsible for managing and administering a trust, entity with whom the confidence is reposed as regards the management of a property for the benefit of another person/entity

(a)  

the person for whose benefit the trust has been created

(a)  

A fiduciary relationship in which the trustor, gives to the trustee, the right to hold and invest assets or property on behalf of the beneficiary

(a)  

Parties involved in a trust

• Trustor

• Trustee

• Beneficiary

• Agency

The person/entity creating the trust must expressly show that he really intended a trust arrangement

• Lawful Purpose

• Intention to Create a Trust

• Trust Property

• Intention of a Trust

Anything that has economic value in which a person may own and which he may transfer legal title, by gift or by sale

• Lawful Purpose

• Intention to Create a Trust

• Trust Property

• Intention of a Trust

If the trust violates a law or is against morals, public policy or public order, the trust will be void and of no effect.

• Lawful Purpose

• Intention to Create a Trust

• Trust Property

• Law of a Trust

A trust will be void if it involves the commission of a criminal act by the trustee, or if the trust encourages the neglect of parental duties, restrains marriage, religious freedom, or the performance of public duties

• True

• False