A form of division of property rights in which for certain property the ownership (which goes to the trustee) is seperated from the beneficial enjoyment (which goes to the beneficiary). The person who transferes the property into the trust is known as the "Grantor" or "Settlor".
A right, enforceable in equity, to the beneficial enjoyment of property held by another party who actually holds legal title. The property so held may itself be called a "trust," especially if it consists entirely of invested money (i.e., a trust fund).
Definition from Nolo’s Plain-English Law Dictionary
An arrangement under which one person, a trustee, manages property for a beneficiary. The person who creates the trust is called the settlor, trustor, or grantor. There are many kinds of trusts, some created during the settlor's lifetime and some at death. Trusts are used for, among other things, avoiding probate court proceedings, saving on estate tax, providing quality management of assets, and keeping money out of the hands of improvident beneficiaries. (See also: living trust
, testamentary trust
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:26 pm