Definition of a trust
Definition :
A trust can be defined as “the legal relationships created - inter vivos or on death - by a person, the settlor, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose.”
A flexible instrument
A trust is a very flexible instrument that can fulfil a wide range of functions. It has connections with law on successions in two ways.
A way of making a gift
First of all, it is a means of making a gift A trust can be constituted inter vivos or to dispose of property upon death (testamentary). It is always an express trust.
Example :
By a will, the deceased has made provision for a part of their estate to be held in a trust. The income from the trust will be attributed to his spouse, with the children receiving the capital at term.
A way of holding the assets of the deceased.
In the common law States, it is also a way of holding the goods of the deceased once the succession administration phase is at an end. Once he has completed his mission, the personal representative or administrator of the estate becomes the trustee of the balance to be distributed.
The implementation of the trust thus marks the completion of the settlement of the succession in certain legal systems.
This is a statutory trust.