Thursday, April 3, 2014

"IRREVOCABLE TRUST" Common-Law Trust

"IRREVOCABLE TRUST" Common-Law Trust

Fiduciary Duty is the highest standard of duty implied by law (e.g., trustee, guardian)

Pernancy of the profits, execution of estates, and defense of the land, are the three great properties of a trust, so that the courts of chancery will compel trustees, 1. To permit the cestui que trust to receive the rents and profits of the land. 2. To execute such conveyances, in accordance with the provisions of the trust, as the cestui que trust shall direct. 3. To defend the title of the land in any court of law or equity. Cruise, Dig. tit. 12, c. 4, s. 4. A Law Dictionary Adapted To The Constitution and Laws of the United States of America and of the Several States of the American Union by John Bouvier Revised Sixth Edition, 1856    

PERNANCY defined: Taking; a taking or receiving; as of the profits of an estate. Actual pernancy of the profits of an estate is the taking, perception, or receipt of the rents and other advantages arising therefrom. Black’s Law Dictionary Sixth Edition (page 625)

A trust is a fiduciary relationship with respect to property where an individual known as a settler transfers property to a trustee who then holds that property for the benefit of a named beneficiary. An irrevocable trust is a type of trust where the terms cannot be amended or revised by the trustee or beneficiary.
Trusts have existed since the early Roman era and have become one of the most important innovations in property law. Property placed into trust includes rights to the trustee, separating the property's legal ownership (legal title) and control from its equitable ownership. This may be done for tax purposes or to control the property and legal title if the settlor is absent, incapacitated, or dead. Trusts are frequently created in wills, defining how money and property will be handled for children or other beneficiaries. The trustee is given legal title to the trust property, but is obligated to act for the good of the beneficiaries only. The trustee may be compensated and have expenses reimbursed, but otherwise must turn over all profits from the trust properties. Trustees who violate this "fiduciary duty" are self-dealing. Courts can reverse self-dealing actions, order profits returned, and impose other sanctions. The trustee may be either an individual, a company, or a public body. There may be a single trustee or multiple co-trustees. 

FIDUCIARY BOND defined: Type of surety bond required by court to be filed by trustees, administrators, executors, guardians, and conservators to insure proper performance of their duties. Black’s Law Dictionary Sixth Edition (page 625)

COMMERCIAL INSURANCE defined: Indemnity agreements, in the form of insurance bonds or policies, whereby parties to commercial contracts are to a designated extent guaranteed against loss by reason of a breach of contractual obligations on the part of the other contracting party. To this class belong policies of contract credit and title insurance. Black’s Law Dictionary Sixth Edition (page 803)

FIDES defined: Lat. Faith; honesty; confidence; trust; veracity; honor. Occurring in the phrases "bona fides" (good faith), "mala fides" (bad faith), and "uberrima fides" (the utmost or most abundant good faith). Black’s Law Dictionary Sixth Edition (page 625)
                   
BUSINESS TRUST defined: As distinguished from a joint-stock company, a pure "business trust" is one in which the managers are principals, and the shareholders are cestuis que trust. The essential attribute is that property is placed in the hands of trustees who manage and deal with it for use and benefit of beneficiaries. Morriss v. Finkelstein, Mo.App., 127 S.W.2d 46, 49. A "Massachusetts trust" or "common law trust." See Massachusetts trust; Real estate investment trust (REIT). Black’s Law Dictionary Sixth Edition (page 199)

Fides est obligatio conscientire alicujus defined: A trust is an obligation of conscience of one to the will of another. Black’s Law Dictionary Sixth Edition (page 625)

Fides servanda est defined: Faith must be observed. An agent must not violate the confidence reposed in him.Black’s Law Dictionary Sixth Edition (page 625)

Fides servanda est; simplicitas juris gentium prreva­ leat defined: Faith must be kept; the simplicity of the law of nations must prevaiL A rule applied to bills of exchange as a sort of sacred instruments. Black’s Law Dictionary Sixth Edition (page 625)

ACT OF MAN defined: Every man of sound mind and discretion is bound by his own acts, and the law does not permit him to do any thing against it; and all acts are construed most strongly against him who does them. Plowd. 140. 2. A man is not only bound by his own acts, but by those of others who act or are presumed to act by his authority, and is responsible civilly in all such cases; and, in some cases, even when there is but a presumption of authority, he may be made responsible criminally; for example, a bookseller may be indicted for publishing a libel which has been sold in his store, by his regular salesmen, although he may possibly have had no knowledge of it. A Law Dictionary Adapted To The Constitution and Laws of the United States of America and of the Several States of the American Union by John Bouvier Revised Sixth Edition, 1856

ACT defined: evidence. The act of one of several conspirators, performed in pursuance of the common design, is evidence against all of them. An overt act of treason must be proved by two witnesses. See Overt. 2. The terra. acts, includes written correspondence, and other papers relative to the design of the parties, but whether it includes unpublished writings upon abstract questions, though of a kindred nature, has been doubted, Foster's Rep. 198 ; 2 Stark. R. 116, 141. 3. In cases of partnership it is a rule that the act or declaration of either partner, in furtherance of the common object of the association, is the act of all. 1 Pet. R. 371 5 B. & Ald. 267. 4. And the acts. of an agent, in pursuance of his authority, will be binding on his principal. Greenl. Ev. Sec. 113. A Law Dictionary Adapted To The Constitution and Laws of the United States of America and of the Several States of the American Union by John Bouvier Revised Sixth Edition, 1856 

IRREVOCABLE defined: That which cannot be revoked or recalled. Commissioner of Internal Revenue v. Strong Mfg. Co., C.C.A.Ohio, 124 F.2d 360, 363. Black's Law Dictionary Fourth Edition (page 830) 

IRREVOCABLE OFFER defined: An offer which cannot be revoked or recalled by the offeror without liability  U.C.C. 2-205. See Firm offer. Black's Law Dictionary Fourth Edition (page 830) 

ACCOUNT defined: practice. A statement of the receipts and payments of an executor, administrator, or other trustee, of the estate confided to him. 2. Every one who administers the affairs of another is required at the end of his administration to render an account of his management of the same. Trustees of every description can, in general, be compelled by courts of chancery to settle accounts, or otherwise fully execute their trusts. Where there are no courts of chancery, the courts of common law are usually invested with power for the same purposes by acts of legislation. When a party has had the property of another as his agent, he may be compelled at common law to account by an action of account render. 3. An account is also the statement of two merchants or others who have dealt together, showing the debits and credits between them.  A Law Dictionary Adapted To The Constitution and Laws of the United States of America and of the Several States of the American Union by John Bouvier Revised Sixth Edition, 1856


1 comment:

kennyg said...

What is the purpose of this article. Common Law do not exist. There is only Lawlessness.