Trust

Trust

About Trust:

A trust is a legal arrangement whereby the owner of property (i.e. settlor) transfers ownership to a person(s) (i.e. trustee) who is to hold and control the property according to the owner's instructions, for the benefit of a designated person or persons (i.e. the beneficiaries). Legal title to the trust property is vested in the trustee, while equitable title belongs to the beneficiaries.

In other words, it is: 1. a fiduciary relationship in which one property holds property subject to an equitable obligation to keep or use this property for the benefit of another person. 2. an arrangement created by will or inter vivos trust for the purpose of protecting or conserving property. A trust is a separate taxable entity for federal tax purposes.

Description and Definition of Trust

A legal arrangement under which one person transfers legal ownership of assets to an entity for the benefit of one or more third persons. A trust is a separate taxable entity.

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