Also known as: trust agreements · trust deed · trust instrument
Written by attorneys · grounded in primary & secondary sources — see below
A written instrument that manifests the settlor's intent regarding the provisions of a trust.
Tristan Thompson executes a will that leaves his residuary estate to an existing inter vivos trust he created for his children. After his death the executor transfers the probate assets into the trust pursuant to the will provision. The trust terms then govern distribution of both the original trust property and the poured-over assets.
Tessa Takahashi signs a trust agreement directing that income be paid to her niece during the niece's lifetime and the remainder distributed to charity at the niece's death. The document is delivered to the trustee and funded with securities. A court later looks to the signed agreement to determine the precise distribution scheme.
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Theo Thomas and two other shareholders of Titan Industries sign a voting trust agreement naming Tanner Thompson as trustee and transfer their shares to him. The trustee registers the shares in his name and prepares the required list of beneficial owners. The trustee then votes the shares at the next shareholders meeting according to the agreement's terms.
Tiana Tan signs a trust agreement directing her brother to hold title to certain real property for the benefit of her daughter. The signed document is delivered to the brother together with the deed. When a dispute arises the daughter offers the executed agreement and contemporaneous letters confirming the brother's acceptance and the intended beneficial interest.
Shareholders must sign a written agreement setting out the trust provisions and transfer their shares to the trustee. The trustee must then prepare a list of beneficial owners and deliver both the agreement and the list to the corporation at its principal office. Delivery of the agreement and list is required for the corporation to recognize the trustee's voting authority.
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No. The statute places the delivery obligation on the trustee as a record-keeping requirement. The trust is created between the parties once the agreement is signed and shares are transferred. Failure to deliver affects only the corporation's obligation to recognize the trustee's authority at a meeting.
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A court may modify administrative or dispositive terms if circumstances not anticipated by the settlor make modification necessary to further the trust's purposes. The modification must be made in accordance with the settlor's probable intention to the extent practicable.
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