How are Trusts established in law ?

Answer 1

THIS IS NOT LEGAL ADVICE, do not rely on this for any purpose.

A private express trust is a fiduciary relationship with respect to property where the trustee holds the legal title for the benefit of another for some valid legal purpose.

To establish a valid trust, the following elements are required: (1) settlor, (2) trustee, (3) beneficiary, (4) valid legal purpose, (5) delivery, (6) res (property interest), and (7) intent to create a trust.

The manner in which the trust is created depends on whether it is to be executed while the settlor is alive or upon the settlor's death.

If it is to be executed upon settlor's death, the settlor must comply with the Statute of Wills.

If the settlor seeks to create an inter vivos trust while alive, the settlor can do so by either a (1) transfer in trust, or (2) declaration in trust. In transfers of trust, a third party is the trustee. If the res is real property, the settlor must execute and deliver (actual or symbolic) the deed to the trustee with the intent to create a trust. If the res is personal property, the settlor must deliver the property to the trustee with the intent to create a trust. In a declaration in trust, the settlor is the trustee. Again, if the res is real property, there must be some writing to evidence the settlor's intent to create a trust to satisfy the Statute of Frauds. If it is personal property, the settlor need only have the intent to create a trust (usually evidenced by some objective manifestation of intent).

The information above refers to creations of private express trusts and charitable trusts.

There are also two types of trusts that are formed by operation of law: (1) resulting trust and (2) constructive trust. These two types of trusts cannot be "set up." They arise only by operation of law for a number of reasons, including undue influence in execution of a will.

Answer 2

The specific procedure varies by state/country, but the general process is pretty simple.

The person who currently owns the property (grantor) makes out a document that transfers ownership of the property to a trust. The trust document would name the intended beneficiary, and the trustee who would administer the trust.