Creation of A Trust
A trust may be created by: (1) transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; (2) declaration by the owner of property that the owner holds identifiable property as trustee; or (3) exercise of a power of appointment in favor of a trustee. The ancient rule from English common law is that a trust is not established until it has property or a res. However, the actual property interest required to fund and create the trust is nothing substantial. Furthermore, the property interest need not be transferred contemporaneously with the signing of the trust instrument. Many trusts allow for additional deposits (cash, securities, real estate, etc.) at the direction of the settlor or others, provided the trustee is willing to accept those assets. It can even be funded after death by a "pour-over" provision in the grantor's last will, specifying his or her intent to transfer property from the estate to a trust. It can also be created by a court order or statute, imposing certain rights, duties and responsibilities as to particular property.
Read more about this topic: United States Trust Law
Famous quotes containing the words creation of, creation and/or trust:
“Party action should follow, not precede the creation of a dominant popular sentiment.”
—J. Ellen Foster (1840–1910)
“Some collaboration has to take place in the mind between the woman and the man before the art of creation can be accomplished. Some marriage of opposites has to be consummated. The whole of the mind must lie wide open if we are to get the sense that the writer is communicating his experience with perfect fullness.”
—Virginia Woolf (1882–1941)
“Let every eye negotiate for itself,
And trust no agent.”
—William Shakespeare (1564–1616)