A trust involves any arrangement by which legal title to property is transferred from one person
to be administered by a trustee for another person’s benefit. The elements of a valid trust are:
- A designated beneficiary.
- A designated trustee.
- A fund identified to enable title to pass to the trustee.
- Delivery by the settlor or grantor to the trustee with the intent of passing title.
The trustee is the person holding the trust property. Anyone legally capable of holding title to, and dealing in, property can be a trustee. A settlor, grantor or trustor is the person who creates a trust by a written trust declaration, and may transfer initial assets into the trust. If the settlor of a trust fails to name a trustee, or if a named trustee cannot or will not serve, the trust does not fail. The appropriate court can appoint a trustee. A settlor may prescribe the trustee’s powers and performance. State law applies only in the absence of such terms.
