Slovíčka - 2. semestr

trust - agreement whereby property is held and controlled by someone on behalf of someone else

donor - person giving property in public trust

beneficial interest - the right of a party to some profit, distribution, or benefit from a trust

beneficiary - a person entitled to receive funds or other property under a trust, will, or insurance policy

breach of trust - violation (either through fraud or negligence) by a trustee of a duty that equity requires of him

constructive trust - a trust created by a court (regardless of the intent of the parties) to benefit a party that has been wrongfully deprived of its rights

express trust - a trust created by the free and deliberate act of the parties involved (usually on the basis of written documentation)

fiduciary duty - the legal duty of a person to act in the best interests of the beneficiary

implied trust - a trust that arises from the unexpressed and presumed intentions (inferred from the conduct of the parties, language, or relationships)

legal ownership - the right to hold, manage and administer property that belongs to somebody else

public (charitable) trust - a trust created for charitable or religious or educational or scientific purposes

settlor - a person who creates a trust by giving real or personal property in trust to a trustee for the benefit of a beneficiary

trustee - a person to whom the legal title to property is entrusted to hold or use for another's benefit

Requirements for a trust to be valid – Settlor is creating rights and obligations, that may survive his death, so they have to be certain. In English law, must be certainly that the trust is being created, what the trust property is and who are the beneficiaries.

Types of trust - Some trusts are known as express trusts, having been intentionally created by someone with property to transfer. Other trust are implied – the law presumes that the settlor intended to create a trust even though he did not expressly say so. In these cases, trustee has a choice whether or not to accept the appointment when the trust is created. Some trusts are constructive: the law imposes a trust and obliges the legal owner of property to consider the beneficial interest of another person.

Requirements for a public trust to be registered - donor has shown a clear intention to benefit charity and an organization must work for one of four purposes – relief of property , the advancement of religion, the advancement of education, the benefit of the community.

The difference between administrators and executors – Under Anglo-American law the dead person’s property passes immediately to administrators. If the dead person left a will his property passes to executors. Administrators and executors are not technically trustees since their powers and duties are defined in statute. However, since they become the legal owners of the dead person’s property, and hold it on trust until they have paid debts and taxes and can pass it on to those entitled to inherit, their position is very similar to that of a trustee.