- lANGUAGE LEGAL ENGLISH
T
he term ".trull" refers to an arrangement in which ~
are tJ..e.!.Q by one party, called "the .lr..u..s12", for the ben-
efit of another, "the beneflciary", Most trusts are .. ~
llli.lli:'. These ar e directly and explicitly created by the
&raQlQr, the owner of the property. over his or her assets. For
an express trust to exist, the objects of the trust and the
trust's assets must be explained and listed in detail.
The grantor (or ".se.t1l.Q!,. or ".1r.J.Is1Qr:") creates the trust and
has the legal power to transfer assets 10 th e trustee. This is
usually established by signing an official documenl catled
"Ihe trust jnstrument". A common example is a will, a writ-
ten statement of what should be done with a person's prop-
erty after his or her death. A trust mayaiso be created 10 dis-
tribute prjncjoal and income during the grantor's l ifetime.assets ['a:SCIS)
benefici~ry r,bcnl'fl!;)ri)____ ;vermögen(swertel
(Treuhand-IBegOnstigte(r),
Berechtlgte~
charitable [' I]ll'rII;)b>lj gemeinnütZig, wohlt~tlg
constructive trust fingierter Trust --
(bn'sldired 5 rth"kuvu , [d;)'r... c!:1 SI[ I ~===~: etw. anordnen. etw. verlügen
express trust Ilk'spr ... ~ tr ... sl] ausdrücklich geschaffenes
"'",,"G,~Treuhandverh!ltOiS
arantor [gm:n't;):)I settlor [scl' b:1 1 Stiftenin) eines Treuhandver-
trustor [!r ... 'st,,:1 h~!tnlsses, Begründer(inl eines
-===:-~T,~ustes, Treugeber{in)
_ von jmdm. verwaltet werden
unlauterheld: be -by sb. [held)
improper [Im'prnp';)]
incapacilaled Illßl.:~.'Pll'Sllcltld]
objects of I he trust
! ... obd3ekIS ;)v<\:i 'lust! __ _hier: geschlifls·. rechtsunf~hig
Treuhandgegenstand
on behalf 01 Ion bi'ho:f ov) im Namen von
prindPaI l'pnßS~P"'1I ::::;-;===~h~ler: KaPlta~'===_
property !'prop;)Ii) VermOgensgegenstand
resUiting trust Iri'7 .... 1!1\l tr ... st! (per Gesetz) an der"LIdietax evasion I'ta:ks i,vc13'nl
trust Ilr ... st]ursprOngilche(n) Eigen-
tümer(in) zurOckfallender Trust
Steuerh interzIehung
Treuhandverh!iltnIS. Treulland.
Trust
lrusl~ [u ... ·Sli:) ;;;;;=,,'~feUhandenln);;-__ _
trust instrument l'tr ... sl ,mstr.lm.lnt] Treuhandvertrag
unjustemichmenl ungerecillfertigte Bereicherung
t, ... nd3 ... s1 m'rII!m;)nl I
willlwll-J -- ---·Teslament-----Clflm'
TRUSTS
Treuhandgesellschaften, Treuhandvermögen und Treuhand-
verwaltung: MATT FIRTH erklärt, was es damit auf sich hat.The t rustee can be an individual or organization, and has
the power to manage the assets on behalf of the beneficia-
ry. The term "trust" mayaiso refer to the holding of money
in trust to be spent for charttable aims. Trusts allow grantors
to achieve certaln legal and f inanClal aims. However, they can
also be created for jm oroper purposes, such as talS evasion.
Another type of trust is a "resultjng trust". This is expressed
indirectly by law when a court believes the wrong person is in
possession of property and holds thai property in trust for an-
other person. A court mayaiso establish a "construcljve trust"
in cases IIke that of unjust enrichment (where one person re-
ceives a benefit. although it rightfully belongs to another).Income and principal(MoOelle~t 01 a trust)I. Distribution of .ll..ü.tli
OUTing the lifetime ofthe QamQr_ the Ir!ill income shall
be hkllI.. managed and distribllled b)' the ~ as fol-
lows:
A. Distribution or lo come
The Trustee ma)' galheT alt the iocollle from the assets
transferrcd 10 Ihe Trust. Of distribIlle 311 Of an)' pottion of
the income from the Trust to the Granlor. The Trustee mn)'
di stribute incOllle to third panies as de termined by the
Truslce. or as ~ b)' the Grantor.
B. Dislribution or Princip a t
Unless jncapacjul!ed, the Grontor ma)' direcllbc Trustee
(O distTibute any amount or principa) to the Grontor or a
third party. This power can be lIsee! in s uch 3 manner that
allthe assets may be taken from Ibis T rust.EXERCISE: JuS! leave 1"0 m.
Choose the words that best complete the ted.
a) Resulting trusts I Express t rusts I Constructive trusts
are created when a granlor transfers assets to Ihe
b) settlor I truslor I trustee for them to be managed for
the c) beneficiary I evasion I convention. This usuaUy in-
volves signing an official trust instrument. such as a
d ) principall distribution I will. Trusts are often creat-
ed for e) holding I charitable I resulting purposes, and
for an express trust to exist, its f) objects I certainty I
enrichment must be clear.
Answer5 on page 87
MATT FIRTH teaches legal EnghSh at Ihe Univasity of
st Gallen and the Hochschule Vaduz. llechtenstem. He
is secretary of the European legal English Teachers'
Associatlon. Contact: [email protected]4/2010