Trust is a legal device or arrangement whereby a person delivers part or all of his properties to another person who administers and manages the property/ies for the benefit of designated person/s. The term “person” could mean an individual or natural person or a juridical entity like a corporation or institution.

It is an arrangement composed of three parties, each with his own rights and obligations, and a variety of properties and interests intended to serve a multitude of ends and purposes.

The distinguishing feature of a trust is found in the fact that the legal title to property is in one person, while the beneficial interest (usually referred to as the “equitable title”) is in another person. The legal rights of ownership and control are in the trustee, subject to the duty of using and applying the property as directed by the trustor, while the right to enjoy the benefits from the property is in the trust beneficiary.

Trust may be implied or express. Implied trust is created by operation of law, as for example when a person acquires property by mistake, he is considered by the law as a trustee while he holds the same for the real owner of the property. Express trust is established by the intention of the parties or of the trustor.