Business Glossary

agreement in which the trustee takes title to property (called the corpus) owned by the grantor (donor) to protect or conserve it for either the grantor or the trust's beneficiary. The trust is established by the grantor. The trustee is typically given authority to invest the property for a return. Trusts may be revocable or irrevocable.

Business:type of corporate combination that engaged in monopolies and restraint of trade and that operated freely until the antitrust laws of the late 19th century and early 20th century. The name derived from the use of the voting trust, in which a small number of trustees vote a majority of the shares of a corporation. The voting trust survives as a means of facilitating the reorganization of firms in difficulty. See also investment company ; voting trust certificate .
Law: fiduciary relationship in which a person, called a trustee, holds title to property for the benefit of another person, called a beneficiary . The agreement that establishes the trust, contains its provisions, and sets forth the powers of the trustee is called the trust indenture. The person creating the trust is the creator, settlor, grantor , or donor ; the property itself is called the corpus , trust res, trust fund, or trust estate, which is distinguished from any income earned by it. If the trust is created while the donor is living, it is called a living trust or inter vivos trust . A trust created by a will is called a testamentary trust . The trustee is usually charged with investing trust property productively and, unless specifically limited, can sell, mortgage, or lease the property as he or she deems warranted. See also charitable remainder trust ; clifford trust ; investment trust ; revisionary trust ; trustee in bankruptcy ; trust company ; trust indenture act of 1939 .

1. fiduciary relationship involving two parties, whereby the second party has responsibility for handling property for the benefit of someone else. The trust business has three broad categories: personal trusts, institutional management trusts created under an indenture , and master trust arrangements in which a fiduciary, usually a bank, manages the record keeping for a corporate pension fund. There are four types of personal trusts: a testamentary trust created by a will; an irrevocable trust in which the person creating the trust (the grantor ) transfers property to a trustee but does not have the right to cancel the agreement; a short-term trust, such as a Clifford Trust created to set aside funds for education of the grantor's children; and a revocable living trust that may be terminated by the grantor at any time.See also blind trust ; charitable trust ; deed oftrust ; inter vivos trust ; trust account ; trust company ; trust department ; trustee ; trust indenture act of 1939 .
2. business combination that attempts to restrain competition in a given market through monopoly control of manufacturing, processing, or distribution of goods and services. See also antitrust laws

legal entity that provides for ownership of property by one person for the benefit of another. The trustee receives title to the property, but does not have the right to benefit personally from that property. The trustee has a legal obligation to manage the property and invest its assets solely for the beneficiary of trust . Since the trustee is required to manage the property and its assets in a prudent manner, if the trustee fails to perform in accordance with the prudent man rule the trustee becomes personally responsible for any lost funds or profits incurred by the trust. There are basically two types of trusts: living trust (established during the life of the grantor ) and testamentary trust . For example, a trust may be established by a parent to hold assets for the benefit of a child.

an arrangement whereby property is transferred to a trusted third party (trustee) by a grantor (trustor). The trustee holds the property for the benefit of another ( beneficiary ).

Example: An inter vivos trust was established by a living person who gave her warehouse to a trustee for the benefit of her children.

Example: A testamentary trust was established upon the death of a trustor, according to his will .

fiduciary relationship in which a person, called a trustee, holds title to property for the benefit of another person, called a beneficiary. The person creating the trust is the creator, settlor, grantor, or donor. The property itself is called the corpus, trust res, trust fund, or trust estate, which is distinguished from any income earned by it. If the trust is created while the donor is living, it is called a living trust or inter vivos trust . A trust created by a will is called a testamentary trust . The trustee is usually charged with investing trust property productively.