A trust is created by a settlor who transfers the property of an agent, who then owns the property in trust for the benefit of the beneficiaries.  The Trust depends on the conditions under which it was created. In most jurisdictions, this requires a contractual trust contract or contractual agreement. It is possible that one person will play the role of several of these parties and that several people share a unique role. [Citation required] In a living trust, for example, it is customary for the Grand-Porteur to promote both trustees and life, while citing other beneficiaries of events. [Citation required] The Koons v. case Quibell, a decision of the Saskatchewan First Hereditary Instance of February 10, 1998, examined whether an „In Trust For“ account was irrevocable trust. In this case, the deceased appointed his second wife, Mrs. Quibell, the sole beneficiary of his estate, and appointed her co-executor with her cousin. He did not take precautions for his grandchildren, which angered his only daughter. The widow defendant opened two credit union accounts, one for the applicant`s granddaughter and the other for her brother, and transferred money from the estate account to each account.
She informed the children`s parents that she had created trust funds for the children they would receive at age 18. The documentation of the applicant`s granddaughter`s account was: „Koons, Julianna Dorothy c/o Cheryl Larson (Mrs. Quibell) Trustee, Vincent Hawkes Trustee.“ On the advice of her lawyer, Ms. Quibell provided the children`s parents with the annual T-5 forms with interest earned on the accounts. Trusts are often used as a settlor mechanism to transfer ownership to family members (or others), while Settlor is always allowed to retain some control over the property (either by the choice of an agent, or by the choice of agent and by the diktat of the terms of the trust). If Settlor does not want the beneficiary to own the property until a later date, Settlor can, through the trust agreement, explain how the fiduciary property should be invested and when the property is distributed to the beneficiary of the trust. A fiduciary company does not consider itself a corporation. Rather, it is a method of payment of property and a relationship between the agent and the beneficiary. However, a trust is considered an individual for income tax purposes.
In the United States, state law governs trusts.