Legal Definitions - trust res

The trust res, also known as the trust corpus, principal, or trust property, refers to the specific assets or property that are transferred into and held by a trust. It is the fundamental subject matter or "body" of the trust, and its management and distribution are governed by the trust's terms. A crucial aspect of the trust res is that it must be legally separated from the personal assets of the trustee, who is the individual or entity responsible for managing the trust.

Here are some examples to illustrate the concept of trust res:

• Example 1: Financial Investments
  A parent establishes a trust to provide for their child's future college expenses. They transfer a portfolio of stocks and bonds, valued at $250,000, into this trust. In this scenario, the $250,000 worth of stocks and bonds constitutes the trust res. The trustee, who manages these investments, cannot treat them as their personal property; they must be managed solely for the benefit of the child, as dictated by the trust agreement.

• Example 2: Real Estate
  An elderly individual wants to ensure their family home remains in the family for generations without going through probate. They create a trust and transfer the legal title of their house into it. The house itself, with its land and structures, becomes the trust res. Even if a family member is appointed as the trustee, they do not personally own the house; they hold it in trust for the designated beneficiaries according to the trust's instructions.

• Example 3: Intellectual Property and Royalties
  A successful author creates a trust to manage the copyrights and future royalty income from their published books. They transfer the ownership of these copyrights and the right to receive future royalties into the trust. Here, the intellectual property rights (the copyrights) and the stream of income generated from them are the trust res. The trustee is responsible for collecting these royalties and distributing them to the beneficiaries as outlined in the trust document, keeping these funds distinct from their own personal earnings.