There is no legal definition of ‘trust’. The
following three definitions approach the subject from different
viewpoints.
A working definition
‘A trust is an obligation binding a person (a
‘trustee’) to deal with property in a particular way
for the benefit of another person or class of persons (of which he
himself may be a member) whose interests (except in Scotland) are
protected by the equitable jurisdiction of the courts’.
A simple definition from a legal viewpoint
A trust is a disposition of property to a person (trustee)
or persons jointly (trustees) in whom the legal title then vests in
the confidence that the benefits will be applied to the advantage
of one or more other persons (beneficiaries) or some other object
permitted by law.
A more complex definition
‘A trust… is the relationship which arises
wherever a person called the trustee is compelled in Equity to hold
property, whether real or personal and whether by legal or
equitable title, for the benefit of some persons (of whom he may be
one…) or for some object permitted by law in such a way that
the real benefit of the property accrues, not to the trustee, but
to the beneficiaries or other objects of the trust’ (Law of
Trusts, 9th edition – Professor Keeton).
