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4 Elements of A Trust

Trust defined in necessary elements of a trust . for a trust exist certain elements must exist.

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941 views3 pages

4 Elements of A Trust

Trust defined in necessary elements of a trust . for a trust exist certain elements must exist.

Uploaded by

Horsetail Goatsfoot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Elements of a trust

HE, WHO CLAIMS TRUST, MUST PROVE TRUST.



1. Grantor, Trustor, settlor
A grantor is an individual, company or legal entity that initiates the formation of the
trust. The settlor is the party who brought value to the trust.
The grantor possesses ownership rights of the asset or business and wishes to transfer
it to another person to keep in trust. A grantor can also be someone appointed to act on
behalf of the owner of the assets in formulation of the contract. He has the legal right
to appoint all the relevant parties to the trust and provide the details of the trust. The
intent of the settlor,Grantor is the law of the trust, the settlor must express his intent
and that intent then becomes the law of the trust.


2. Grantee or Trustee (party)
The trustee refers to the individual corporation or other legal entity that is given the
mandate to manage the property by the trustor. This particular party is under an
agreement to administer the property as per the provisions provided by the grantor.
Failure to live up to the terms of agreement -- for example, misuse of the property --
may lead to legal ramifications under the law of equity.

3. Beneficiary (party)
A trust must provide a beneficiary or beneficiaries who will benefit from the trust
once its time period expires. This individual or group will have ownership of the
property or business. The law does not require the beneficiary to have notification of
the trust for it to be valid. A grantor may also provide that the beneficiary of the trust
is a certain charity organization. The state's attorney general has the mandate to
enforce this trust.

4. Intent from Grantor (purpose)
For a trust to be valid there must be a specified intention from the part of the grantor
to form a trust and be bound to it. The grantor is to present this intent on a document
known as a trust that provides the identification of all affected parties and their
responsibilities. However, the trust is invalid if the grantor instills a provision for the
trustee to fulfill that is against public policy -- the commission of a crime, for example


5. The Property (res)
The trust document should specify the property that the trustor bestows to the trustee
to manage for the beneficiary. This may be in the form of an estate, cash, a business, a
vehicle or a boat. This is known as the trust property.



PREAMBLE
"We the People of the United States, in Order to form a more perfect Union, establish Justice,
insure domestic Tranquility, provide for the common defense, promote the general Welfare, and
secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this
Constitution for the United States of America."

STRUCTURE OF PREAMBLE

TRUSTOR: We the People [trustors]

VENUE: of the United States

PURPOSE: in Order to form a more perfect Union, establish Justice, insure domestic
Tranquillity, provide for the common defense, promote the general Welfare, and secure the
Blessings of Liberty

BENEFICIARY: to ourselves and our Posterity,

ENABLING ACTION 1: do ordain [declare the law]

ENABLING ACTION 2: and establish [bring into existence]

WHAT: this Constitution [articles of incorporation for trust]

TRUSTEE: for the United States of America. [trustee]

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