"Trust"

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Trust or trust (trust) in common law is a system of relations in which property originally owned by the founder of the trust (trustee) is transferred to the disposal of the trustee (trustee or trustee), but the beneficiaries (beneficiaries) receive income from it. The founder of the trust (which can be both a beneficiary and / or a manager) under a special agreement transfers his property (shares, shares in companies, real estate, art, collections, intellectual property, money, etc.) under the control of the trustee, who is obliged to make transactions with them that bring the beneficiaries maximum profit or comply with other instructions of the founder of the trust (principal).

In the jurisdiction of Russia since 2022, some analogue of the possibilities of trusts are personal funds (FZ of 01.07.2021 N 287-FZ), a series of articles of the Civil Code of the Russian Federation 123.20.

Features of the trust
We can say that a trust is a separate independent owner in legal relations (not a private company and not an individual), inseparably linked with its creator (founder of the trust) and beneficiaries of the trust.

The peculiarity of the trust as another form of ownership is that the property of the trust does not belong to either the founder of the trust (he loses ownership of it from the moment the property is transferred to the manager), nor the trustee of the trust (he only manages this property and is the formal holder of title to the property), nor to the beneficiaries before the date of termination of the trust.

In a number of countries, including Russia, trust property (that is, trust) is not separate as a separate independent owner in legal relations. Transferring in this case his property in trust management, a person does not alienate it and does not establish a trust, but only becomes a trustee. Property in trust management is not considered to have left the property of the principal - for example, it can participate in the repayment of its obligations.

The services of the trustee are paid by the beneficiaries (beneficiaries) or the founder of the trust, usually as a percentage of the profits received.

The object of management can be any property, both movable and immovable, including art objects, collections, intellectual property, jewelry, shares in companies. Only property expressly prohibited by the legislation of the country of establishment of the trust is not acceptable.

The founder of the trust (principal) has the right to transfer his property both during his lifetime (life trust), and to provide for such transfer after his death (testamental trust). The trustee is responsible for fulfilling the terms of the trust agreement and generally has broad powers to manage the trust founder’s property, but may also receive special instructions on how to distribute trust income and capital among beneficiaries (e.g. heirs of the trust founder)