WHAT IS A TRUST?
A TRUST is an equitable obligation (as opposed to a statutory obligation), binding a person (who is called a TRUSTEE) to deal with the property (which is called the TRUST PROPERTY) of another person (who is called a SETTLOR) over which the trustee has been given control and legal title for the benefit of a third party (who is called the BENEFICIARY) according to specific terms generally set out in a trust instrument or agreement. Any of the parties — settlor, trustee or beneficiary — can enforce the obligation. Any act or neglect on the part of the trustee which is not authorized or excused by the terms of the trust instrument, or by law, is called a breach of trust. Trustees are personally liable for such breaches.
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