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WHAT IS TRUST?
A Trust is the creature of equity and not of common law. It is a fiduciary relationship with respect to property, arising as a result of a manifestation of an intention to create that relationship and subjecting the person who holds title to the property (the Trustee) to duties to deal with it for the benefit of “third-party beneficiaries” {RESTATEMENT (THIRD) OF TRUSTS [2]}. Though the trust concept has been more often than not been described throughout the centuries, a precise definition of trust has not been entirely successful. According to LEWIN, the word “trust” refers to the duty or aggregate accumulating of obligations that rest upon a person described as a trustee. The responsibilities are in relation to property held by him or under his control. That property he will be compelled by a court in its equitable jurisdiction to administer in the manner lawfully prescribed by the trust instrument or where there be no specific provision written or oral, or to the extent that such provision is invalid or lacking, in accordance with equitable principles. As a consequence the administration will be in such a manner that the consequential benefits and advantage accrue, not to the trustee, but to the persons called cestui que trust, or beneficiaries if there be any; if to, for some purpose which the law will recognise and enforce. A trustee may be a beneficiary, in which case advantages will accrue in his favour to the extent of his beneficial interest.
MAIN FEATURES OF A TRUST
It is necessary to bear in mind the following characteristics of a trust when considering the requirements for setting one up:
i) an essential feature of a ...