Trust law is the original and foundational law of trusts in the world, and a unique contribution of English law to the legal system. Trusts are part of the law of property, and arise where one person (a “settlor”) gives assets (e.g. some land) to another person (a “trustee”) to keep safe or to manage on behalf of another person (a “beneficiary”).
The four parts to a trust are.
- Grantor – The person who grants a trust by a written trust declaration, called a “Trustor” and sometimes referred to as the “Donor.” The settlor usually transfers the original assets being property either real or personal, into the trust.
- Trustee – A trustee manages property that is held in trust. A trust is an arrangement in which one person holds the property of another for the benefit of a third party, called the beneficiary. The beneficiary is usually the owner of the property or a person designated as the beneficiary by the owner of the property. A trustee may be either an individual (natural person) or a corporation (legal person).
- Beneficiary – A person for whom a trust is created and who thereby receives the benefits of the trust. A person entitled to a beneficial interest or a right to profits, benefit, or advantage from a contract.
- Res – [Latin, A thing.] Property put in trust by the grantor to the trustee for the benefit of the beneficiary.
We are predominantly interested in the following trust:
“A trust created by a writing (declaration of trust) which commences at that time, while the creator (called a trustor or settlor) is alive, sometimes called a “living trust.” The property is then placed in trust with a trustee (often the trustor during his/her lifetime) and distribution will take place according to the terms of the trust—possibly both during the trustor’s lifetime and then upon the trustor’s death. This is different from a testamentary trust which is created by the terms of a will and places some assets from the dead person’s estate in a trust to exist from the date of death and until fully distributed.”
March 1913 – Classification of the Law of Trusts – A. N. Whitlock
Go to Cestui Que Vie Act 1666