Legal Term Dictionary

1. An equitable or beneficial right or title to land or other property, held for the beneficiary by another person, in whom resides the legal title or ownership, recognized and enforced by courts of chan-cery. See Goodwin v. McMinn, 193 Pa. 646, 44 Ati. 1094, 74 Am. St. Rep. 703; More...

1. An equitable or beneficial right or title to land or other property, held for the beneficiary by another person, in whom resides the legal title or ownership, recognized and enforced by courts of chan-cery. See Goodwin v. McMinn, 193 Pa. 646, 44 Ati. 1094, 74 Am. St. Rep. 703; Beers v. Lyon, 21 Conn. 613; Seymour Freer, 8 Wall. 202, 19 L. Ed. 306. An obligation arising out of a confidence reposed in the trustee or representative, who has the legal title to property conveyed to him, that he will faithfully apply the prop-erty according to the confidence reposed, or, in other words, according to the wishes of the grantor of the trust. 4 Kent Comm. 304; Willis, Trustees, 2; Beers v. Lyon, 21 , Conn. 613; Thornburg v. Buck, 13 Ind. App. 446, 41 N; E. 85. An equitable obligation, either express or implied, resting upon a person by reason of a confidence reposed in him, to apply or deal with the property for the benefit of some other person, or for the benefit of himself and another or others, according to such con-fidence. McCreary v. Gewinner, 103 Ga. 528, 20 S. E. 960. A holding of property subject to a duty of employing it or applying its proceeds ac-cording to directions given by the person from whom it was derived. Munroe v. Crouse, 59 Him, 248, 12 N. Y. Supp. 815. —Accessory trust. In Scotch law, this is the term equivalent to "active" or "special" trust. See infra.—Active trust. One which imposes upon the trustee the duty of taking active measures in the execution of the trust, as, where property is conveyed to trustees with directions to sell and distribute the proceeds among creditors of the grantor; distinguished from a "passive" or "dry" trust.—Cestui que trust. The person for whose benefit a trust is created or who is to enjoy the income or the avails of it—Constructive trust. A trust raised by construction of law, or arising by operation of law, as distinguished from an ex-press trust Wherever the circumstances of a transaction are such that the person who takes the legal estate in property cannot also enjoy the beneficial interest without necessarily vio¬lating some established principle of equity, the court will immediately raise a constructive trust, and fasten it upon tbe conscience of the legal owner, so as to convert him into a trus¬tee for the parties who in equitv are entitled to the beneficial enjoyment. Hill, Trustees, 116; 1 Spence, Eq. Jur. 511. Neater v. Gross, 66 Minn. 371. 60 N. W. 39: Jewelry Co. Volfer, 106 Ala. 205,17 South. 525, 28 L. R. A. 707, 54 Am. St Rep. 31.—Contingent trust. An express trust may depend for its operation upon a future event and is then a "contingent'* trust. Civ. Code Ga. 1895, § 3154.—Direct trust. A direct trust is an express trust, as distinguished from a couBtmcMve or i»«nl?*d trust. Currence v. Ward, 43 W. Va. 867, 27 S. E. 329.—Directory trust. One which ia subject to be moulded or applied according to subsequent directions of the grantor; one which Is not completely and finally settled by the Instrument creating it but only defined in ita general purpose and to be carried into detail according to later specific directions.—Dry trust. One which merely vests the legal title in the trustee, and does not require the per¬formance of any active duty on his part to carry out the trust—Executed trust. A trust of which the scheme has in the outset been completely declared. Adams, Eq. 151. A trust in which the estates and interest in the subject-matter of the trust are completely limited and defined by the instrument creating the trust, and require no further instruments to complete them. Bisp. Eq. 20; Pillot v. Landon, 46 N. J. Eq. 310, 19 Atl. 25; Dennison v. Goehring, 7 Pa. 177, 47 Am. Dec. 505; In re Fair's Estate, 132 Cal. 523, 60 Pac. 442, 84 Am. St. Rep. 70; Cushing v. Blake. 29 N. J. Eq. 403; Egerton v. Brownlow, 4 H. L. Cas. 210. As all trusts are executory in this sense, that the trustee is bound to dispose of the estate according to the tenure of his trust, whether active or passive, it would be mere accurate and precise to substitute the terms, "perfect" and "imperfect" for "executed" and "execu-tory" trusts. 1 Hayes, Conv. 85.—Executory trust. One which requires the execution of some further instrument, or the doing of some further act, on the part of the creator of the trust or of the trustee, towards itp complete creation or full effect An executed trust is one fully created and of immediate effect. These terms do not relate to the execution of the trust as regards the beneficiary. Martling v. Marthn*. 55 N. J. Eq. 771, 39 Atl. 203; Car-radine v. Carradine, 33 Miss. 729: Cornwell v. Wulff, 148 Mo. 542, 50 S. W. 439, 45 L. R. A. 53; In re Fair's Estate, 132 Cal. 523, 60 Pac. 442, 84 Am. St. Rep. 70; Pillot v. Lan-don. 46 N. J. Eq. 310, 19 Atl. 25.—Express trust. A trust created or declared in express terms, and usually in writing, as distinguished from one inferred by the law. from the con¬duct or dealings of the parties. State v. Camp¬bell, 59 Kan. 246, 52 Pac. 454; Kaphan v* Toney (Tenn. Ch.) 58 S. W. 913: McMonagle v. McGlinn (C. C.) 85 Fed. 91; Ransdel v, Moore, 153 Ind. 393, 53 N. E. 767. 53 L. R. A. 753. Express trusts are those which are created in express terms in the deed, writing, or with, while implied trusts are those which, without being expressed, are deducible from the nature of the transaction, as matters of intent, or which are superinduced upon the transac¬tions by operation of law, as matters of equity, independently of the particular intention of the parties. Brown v. Cherry, 56 Barb. (N. Y.) 635.—Imperfect trust. An executory trust, (which see;) and see EXECUTED TRUST.—---Implied trust. A trust raised or created by implication of law; a trust implied or pre-sumed from circumstances. Wilson v. Welles,* 79 Minn. 53. 81 N. W. 549; In re Morgan, 84 Hun (N. Y.j 220; Kaphan v. Toney (Tenn. Ch.) 58 S. W. 913; Cone v. Dunham, 59 Conn. 145, 20 Atl. 311. 8 L. R. A. 647; Russell v. Peyton, 4 111. App. 478.—Involuntary trust. "Involuntary" or "constructive" trusts embrace all those instances in which a trust is raised by the doctrines of equity, for the pur¬pose of working out justice in the most efficient manner, when there is no intention of the parties to- create a trust relation and contrary to the intention of the one holding the* legal title. This class of trusts may usually be referred to fraud, either actual or constructive, as an essential element. Bank v. Kimbalr Milling Co., 1 S. D. 388, 47 N. W. 402, 36 Am. St Rep. 739.—Ministerial trusts. (Also called "instrumental trusts.") Those which demand no further exercise of reason or under-standing than every intelligent agent must nec¬essarily employ; as to convey an estate. They are a species of special trusts, distinguished from discretionary trusts, which necessarily re-, quire much exercise of the understanding. 2 Bouv. Inst. no. 1896.—Naked trust. A dry Or passive trust; one which requires no action on the part of the trustee, beyond turning over money or property to the cestui que trust.— Passive trust. A trust as to which the trustee has no active duty to perform. Goodrich v. Milwaukee, 24 Wis. 429; Perkins v. Brink-lev. 133 N. C. 154. 45 S. E. 512: Holmes v. Walter, 118 Wis. 400. 95 N. W. 380, 02 L. R. A. 986.—Precatory trust. Where words em¬ployed in a will or other instrument do not amount to a positive command or to a distinct testamentary disposition, but are terms of en-treaty, request, recommendation, or expectation, they are termed "precatory words," and from such words the law will raise a trust, called a "precatory trust," to carry out the wishes of the testator or grantor. See Bohon v. Barrett, 70 Ky. 378; Hunt v. Hunt. 18 Wash. 14. 50 Pac. 578; Aldrich v. Aldrich, 172 Mass. 101. 51 N. E. 449.—Private trust. One established or created for the benefit of a certain designat¬ed individual-or individuals, or a known person or class of persons, clearly identified or ca¬pable of identification by the terms of the in¬strument creating the trust, as distinguished from trusts for public institutions or charitable uses. See Pennoyer v. Wad hams, 20 Or. 274, 25 Pac. 720/11 L. R. A. 210; Doyle v. Whalen, 87 Me. 414, 32 Atl. 1022, 31 L. R. A. 118 : Brooks v.*Belfast, 90 Me. 318. 38 Atl. 222. —Proprietary trust. In Scotch law, a na¬ked, dry, or passive trust See —Public trust. One constituted for the benefit either of the public at large or of some considerable portion of it answering a particular description ; to this class belong all trusts for charitable pur¬poses, and indeed public trusts and charitable trusts may be considered in general as synonymous expressions. Lewin, Trusts, 20.—Resulting trust. One that arises by implication of law. or by the operation and construction of equity, and which is established as consonant to the presumed intention of the parties as gathered from tbe nature of the transaction; as, for example, where one person, becomes in¬vested with the title to real property under cir¬cumstances which in equity obligate him to hold the title and exercise his ownership for the bene¬fit of another, a familiar instance being the case where a man buys land with his own money but has the title put in the name of another. See Sanders v. Steele, 124 Ala. 415. 26 South. S*2 ; Dorman v. Dorman, 18T 111. 154, 58 N. E. 23.r». 79 Am. St. Rep. 210; Aborn v.-Searles, 18 R. I. 357, 27 Atl. 796; Fulton v. Jansen, 00 Cal. 587. 34 Pac. 331; Western Union Tel. Oo. v. Shepard, 169 N. Y. 170, 62 N. K. 154. 58 L. R. A. 115.—Secret trusts. Where a testator gives property to a person, on a verbal promise by the legatee or devisee that he will hold} it in trust for another person, this is called a "secret trust." Sweet.—Shifting trust. An express trust which is so settled that it may operate in favor of beneficiaries additional to, or substituted for, those first named, upon specified contingencies. Civ. Code Ga. 1895. ft 3ir>4. —Simple trust. A simple trust corresponds with the ancient use, and is where property is simply vested in one person for the use of an-dther. and the nature of the trust, not being qualified by the settler, is left to the construc-tion of law. It differs from a special trust. Perkins v. Brinkley, 133 N. C. 154.. 45 S. E. 541 : Cone v. Dunham. 59 Conn. 145. 20 Atl. 311, R L. R. A. 617; Dodson v. Ball. 60 Pa. 500. 100 Am. Dec. 586.—Special trust. Where the mnchjnery of a trust is introduced for the execution of some purpose particularly pointed out. and th<» trustee is not a mere passive depositary of the estate, but is called upon to exert himself actively in the execution of the settlor's intention: as, where a conveyance is to trustees upon trust to sell for payment of debts. Special trusts have been divided into (1) ministerial (or instrumental) and (2) discretionary. . The former, such as demand no further exercise of reason or understanding than every.intelligent agent must necessarily employ; the latter, such as cannot be duly administered without the application of a certain degree of prudence and judgment. 2 Bouv. Inst no. 1896; Perkins v. Brinkley, 133 N. O. 154, 45 S. E. 541: Flagg v. Ely, 1 Edm. Sel. Cas. (N. Y.) 209 ; fcreer v. Lake, 115 111. 062, 4 N. E. 512; Dodson v. Ball, 60 Pa. 496, 100 Am. Dec 586.—Spendthrift trust. See SPENDTHRIFT. —Transgrossive trust. A name sometimes applied to a trust which transgresses or violates the rule against perpetuities. See Pulitser v. Lhingston, 89 Me. 359, 36 Atl. C35.-Trmst company. A corporation formed for the pur¬pose of taking, accepting, and executing all such trusts as may be lawfully committed to it, and acting as testamentary trustee, trustee under deeds of settlement or for married women, executor, guardian, etc. To these functions are sometimes (but not necessarily) added the busi¬ness of acting as fiscal agent for corporations attending to the registration and transfer of their stock and bonds, serving as trustee for their bond or mortgage creditors, and transact¬ing a general banking and loan business. See Vennetf v. Farmers' L. & T. Co., 54 App. Div. 271. 66 N. Y. Supp. 773; Jenkins v. Neff, 163 N. Y. 320, 57 N. E. 408; Mercantile Nat. Bank v. New xork, 121 U. S. 138, 7 Sup. Ct. 826, 30 L. Ed. 895.—Trust-deed. (1) A species of mortgage given to a trustee for the purpose of securing a numerous class of creditors, as the bondholders of a railroad corporation, with pow¬er to foreclose and sell on failure of the pay¬ment, of their bonds, notes, or other claims. (2) In some of the states, and in the District of Columbia, a trust-deed is a security resem¬bling a mortgage, being a conveyance of lands to trustees to secure the payment of a debt, with a power of sale upon default, and upon a trust to apply the net proceeds to paying the debt and to turn over the surplus to the gran¬tor.—Trust estate. This term may mean ei¬ther the estate of the trustee,—that is, the legal title,—or the estate of the beneficiary, or the eorpus of .the property which is the subject of the. trust See Cooper v. Cooper, 5 N. J. Eq. 9; Farmers' L. & T. Co. v. Carroll, 5 Barb. (N. Y.) 643.—Trust ex maleneio. A species ot> constructive trust arising out of some traud, misconduct, • or breach of faith on the part of the person to be charged as trustee, which ren¬ders it an equitable necessity that a trust should be implied. See Rogers v. Richards, 67 Kan. 706. 74 Pac. 255; Kent v. Dean, 128 Ala. 600, 30 South. 543J.Barry v. Hill, 166 Pa. 344, 31 Atl. 126.—Trust fund. A fund held by a trustee for the specific purposes of the trust; in a more general sense, a fund which, legally or equitably,-is subject to be devoted to a par-ticular' purpose and cannot or should not be diverted therefrom. In this sense it is often said that the capital and other property of a corporation-is a "trust fund" for the payment of its debts. See Henderson v. Indiana Trust Co., 143 Ind. 561. 40 N. E. 516; In re Beard's Estate) 7 Wyo. 104, 50 Pac. 226, 38 L. R. A. 860, 75 Am. St. Rep. 882.—Trust in in vi turn. A constructive trust imposed by equity, con-trary to. the trustee's intention and will, upon property in his hands. Sanford v. Hamner, 115 Ala. 406, 22 South. 117.—Voluntary trust. An obligation arising out of a personal confidence reposed in, and voluntarily accepted by, one for the benefit of another, as distinguished from an 'involuntary" trust which is created by operation of law. Civ. Code Cal. §§ 2216, 2217. According to another use of the term, "voluntary" trusts are such as are made in favor of a volunteer, that is, a person who gives nothing in exchange for the trust, but receives it as a pure gift; and in this use the term is distinguished from "trusts for value," the latter being such as are in favor of purchasers, mortgagees, etc. 2. In constitutional and statutory law. *: An association or organization of persons or corporations having the intention and power, or the tendency, to create a monopoly, control production, interfere with the free course of trade or transportation, or to fix and regulate the supply and "the price of commodities. In the history of economic development, the "trust" was originally a device, hy 'which several corporations engag¬ed In the same general line of business might combine for their mutual advantage, in the direction of eliminating destructive competition, controlling the output of their commodity, and regulating and maintaining its price,, but. at the same time preserving their, .separate individual existence, and with¬out any consolidation or merger. This de¬vice was the erection of a central committee or board, composed, perhaps, of the presi¬dents or general managers of the different corporations, and the transfer to them of a majority of the stock in each of the corpo-rations, to be held "In trust" for the sev^ eral stockholders so assigning their holdings. These stockholders received in return "trust certificates" showing that they were entitled to receive the dividends on their assigned stock, though the voting power of it had passed to the trustees. This last feature enabled the trustees or committee to elect all the directors of all the corporations, and through them the officers, and thereby to ex-ercise an absolutely controlling influence over the policy and operations of each con-stituent company, to the ends and with the purp ses above mentioned. Though the "trust," in this sense, is now seldom if ever resorted to as a form of corporate organization, having given place to the "holding cor-poration" and other devices, the word has become current in statute laws as well as popular speech, to designate almost any form of combination of a monopolistic character or tendency See Black, Const Law (3d Ed.) p. 428; Northern Securities Co. v. U, S., 193 U. S. 197, 24 Sup. Ct 436, 48 L. Ed. 679; MacGinnlss v. Mining Co., 29 Mont 428, 75 Pac. 89; State v. Continental Tobacco Co., 177 Mo. 1, 75 S. W. 737; Queen Ins. Co. v. State, 86 Tex. 250, 24 S. W. 397, 22 L. R. A. 483; State v. Insurance Co., 152 Mo. 1, 52 S. W. 595, 45 I* R. A. 363; Gen. St. Kan. 1901, § 7864; Code Miss. 1892, § 4437; Cob-bey's Ann. St Neb. 1903, § 11500; Bates' Ann. St. Chio, 1904, § 4427; Code Tex. 1895, art 976. Less...

The person appointed, or required by law, to execute a trust; one in whom an estate, interest, or power is vested, under an express or implied agreement to administer or exercise it for the benefit or to the use of another. "Trustee" is also Used in a wide and perhaps More...

The person appointed, or required by law, to execute a trust; one in whom an estate, interest, or power is vested, under an express or implied agreement to administer or exercise it for the benefit or to the use of another. "Trustee" is also Used in a wide and perhaps inaccurate sense, to denote that a person has the duty of carrying out a transaction, in which he and another person are interested, in such manner as will be most for the benefit of the latter, and not In such a way that he himself might be tempted, for the sake of his personal advantage, to neglect the Interests of the other. In this sense, directors of companies are said to be "trustees for the shareholders." Sweet. -----Conventional trustee. A "conventional" trustee is one appointed by a decree of court to execute a trust, as distinguished from one appointed by the instrument creating the trust. Gilbert v. Kolb, 85 Md. 627, 37 Atl. 423.-Joint trustees. Two or more persons who are intrusted with property for the benefit of one or more others.---------Quasi trustee. A person who reaps a benefit from a breach of trust, and so becomes answerable as a trustee. Lewin, Trusts (4th Ed.) 592, 688.---------Testamentary trustee. A trustee appointed by or acting under a will; one appointed to carry out a trust created by a will. The term does not ordinarily include an executor or an administrator with the will annexed, or a guardian, though all of these are in a sense trustees, except when they act in the execution of a trust created by the will and which is separable from their functions as executors, etc. See In re Uaz-' ard, 51 Hun, 201, 4 N. Y. Supp. 701: In re Valentine's Estate, 1 Misc. Rep. 401, 23 N. Y. Supp. 289: In re Hawley, 104 N. Y. 250, 10 N. E. 352.-Trustee acts. The statutes 13 & 14 Vict c. 00, passed in 1850, and 15 A 1G Vict c 55, passed in 1852. enabling the court of chancery, without bill filed, to appoint new trustees in lieu of any who, on account of death, lunacy, absence, or otherwise, are unable or unwilling to act as such; and also to make vesting orders by which legal estates and rights may be transferred from the old trustee or trustees to the new trustee or trustees so appointed. Mozley A Whitley.---------Trustee ex malefecio. A person who, being guilty of wrongful or fraudulent conduct, is held by equity to the duty and liability of a trustee, in relation to the subject-matter, to prevent him from profiting by his own wrong.-------Trustee in bankruptcy. A trustee in bankruptcy is a person in whom the property of a bankrupt Is vested in trust for the creditors.-Trustee process. The name given, in the New England states, to the process of garnishment or foreign attachment--------Trustee Relief Acts. The statute JO & 11 Vict. c. 96. passed in 1847. and statute 12 A 13 Vict. c. 74, passed in 1849. by which a trustee is enabled to pay money into court, in rases where a difficulty arises respecting the title to the trust fund. Mozley & Whitley. Less...

In Scotch law. The maker or creator of a trust.

In Scotch law. The maker or creator of a trust. Less...

In old European law. Trust; faith; confidence; fidelity.

In old European law. Trust; faith; confidence; fidelity. Less...

A word occasionally, though rarely, used as a designation of the creator, donor, or founder of a trust.

A word occasionally, though rarely, used as a designation of the creator, donor, or founder of a trust. Less...

To examine judicially; to examine and investigate a controversy, by the legal method called "trial" for the purpose of determining the issues it involves.

To examine judicially; to examine and investigate a controversy, by the legal method called "trial" for the purpose of determining the issues it involves. Less...

Lat. Have or take your things to yourself. The form of words by which, according to the old Roman law, a man divorced his wife Calvin.

Lat. Have or take your things to yourself. The form of words by which, according to the old Roman law, a man divorced his wife Calvin. Less...

In mercantile law. A measure containing sixty pounds of tea, and from fifty-six to eighty-six pounds of camphor. Jacob.

In mercantile law. A measure containing sixty pounds of tea, and from fifty-six to eighty-six pounds of camphor. Jacob. Less...

In English law. A barrister who has a preaudience in the exchequer, and also one who has a particular place in court, is so called. Brown.

In English law. A barrister who has a preaudience in the exchequer, and also one who has a particular place in court, is so called. Brown. Less...

In Spanish law. Objections or exceptions to witnesses. White, New Recop. b. 3, tit 7, c 10.

In Spanish law. Objections or exceptions to witnesses. White, New Recop. b. 3, tit 7, c 10. Less...