Also known as: trust · trusts · future interest · future interests · trust law
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An equitable device by which one party holds legal title to property for the benefit of others, subject to fiduciary duties.
A nonpossessory interest in property that may become possessory upon a future event or the termination of a prior estate.
An equitable device by which one party holds legal title to property for the benefit of others, subject to fiduciary duties.
Select any source to read its text and confirm it supports the definition.
A nonpossessory interest in property that may become possessory upon a future event or the termination of a prior estate.
Select any source to read its text and confirm it supports the definition.
Each sense below has its own examples, sources, and questions.
Tamara Tan signed a binding contract to sell her warehouse to Tanner Thompson. Before closing a fire destroyed part of the building. Because the contract formed, Tamara holds legal title in trust for Tanner, who bears the risk of loss and holds the equitable interest in the property.
Theresa Tucker, a solo practitioner, deposited her own funds into her client trust account solely to cover bank service charges. The deposit was limited to the exact amount needed for that purpose and did not commingle personal funds with client money.
Tara Tran and Tyrone Tran placed jointly acquired real estate into a revocable trust during their marriage. The transferred assets retained their character as marital property under the uniform act, preserving each spouse's undivided one-half interest.
Tundra Resources created a trust to hold mineral rights for its shareholders. The trust instrument required distributions only to those shareholders and limited the purpose to lawful investment activities that directly benefited the named beneficiaries.
Once a binding contract forms, the seller holds legal title in trust for the buyer. The buyer therefore bears the risk of loss even before the deed is delivered.
Supporting sources
No. Under the Uniform Marital Property Act, marital property transferred to a trust remains marital property, preserving each spouse's undivided one-half interest.
Supporting sources
A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve, and its terms must be for the benefit of its beneficiaries.
Supporting sources
A lawyer may deposit the lawyer's own funds in a client trust account only for the sole purpose of paying bank service charges and only in the amount necessary for that purpose.
Supporting sources
Talia Torres conveyed Blackacre to her son for life, remainder to his children who survive him. The children's remainder is a future interest that may become possessory only if they outlive their father.
Tyler Trent devised Greenacre to his wife for life, then to his daughter if she survives the wife. The daughter's interest is a future interest that may divest the prior estate upon the stated condition.
…in his public office, or impute misconduct to him in his office, or want of official integrity, or want of fidelity to a public trust . . . ." The jury must find that the words were published "of and concerning" the plaintiff, but where the plaintiff is a public official his place in the governmental hierarchy is…