In law, a relationship between parties in which one, the trustee or fiduciary, has the power to manage property, and the other, the beneficiary, has the privilege of receiving the benefits from that property. Trusts are used in a variety of contexts, most notably in family settlements and in charitable gifts. The traditional requirements of a trust are a named beneficiary and trustee, an identified property (constituting the principal of the trust), and delivery of the property to the trustee with the intent to create a trust. Trusts are often created for the sake of advantageous tax treatment (including exemption). A charitable trust, unlike most trusts, does not require definite beneficiaries and may exist in perpetuity. See also trust company.

This entry comes from Encyclopædia Britannica Concise.
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