Legal Definitions - Trust Property

Trust Property refers to the specific assets or wealth that are placed into a legal arrangement known as a trust. It is the core subject matter of the trust, sometimes also called the "trust corpus." For something to be considered trust property, it must exist at the time the trust is created and be clearly identifiable. This can include almost any type of asset that can legally be owned and transferred, ranging from real estate and financial investments to valuable personal possessions. The existence of identifiable trust property is a fundamental requirement for a valid trust to be established.

• Example 1: Real Estate

  A grandparent establishes a trust with the goal of providing for their grandchildren's college education. They transfer the deed to a rental apartment building they own into this trust. The income generated from the rent will be used to fund the grandchildren's tuition.

  Explanation: The rental apartment building is the Trust Property. It is a specific, existing, and identifiable asset (real estate) that has been legally placed into the trust to be managed for the benefit of the grandchildren, fulfilling the trust's purpose.

• Example 2: Financial Investments

  A business owner creates a trust to manage their retirement savings and ensure a smooth transfer of wealth to their heirs. They fund the trust with a portfolio of publicly traded stocks, mutual funds, and a significant amount of cash held in a brokerage account.

  Explanation: In this scenario, the stocks, mutual funds, and the cash in the brokerage account collectively represent the Trust Property. These are all identifiable financial assets that are legally transferable and are now held and managed within the trust structure according to the business owner's instructions.

• Example 3: Valuable Collectibles

  An avid antique car collector decides to set up a trust to ensure their prized collection of vintage automobiles is properly maintained and eventually displayed in a museum. They legally transfer ownership of all five classic cars to the trust.

  Explanation: The collection of five vintage automobiles constitutes the Trust Property. These are specific, valuable, and identifiable physical assets that the collector has legally committed to the trust for a particular purpose (maintenance and eventual donation), demonstrating that even unique personal property can serve as trust assets.