trust


trust
A fiduciary relationship calling for a trustee to hold the title to assets for the benefit of the beneficiary. The person creating the trust, who may or may not also be the beneficiary, is called the grantor. Bloomberg Financial Dictionary
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See trustee. Euroclear Clearing and Settlement glossary
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A fiduciary relationship that empowers one or more people (trustees) to safeguard and administer the assets (money or property) of the beneficiaries or investors. London Stock Exchange Glossary

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trust trust [trʌst] noun
1. [uncountable] a belief in the honesty or goodness of someone or something:

• The measures are necessary to restore public trust in the futures markets.

• He abused his position of trust (= a job with responsibility for making important decisions ) and defrauded the institution.

2. take something on trust to believe that something is true without having any proof:

• I just had to take it on trust that he would deliver the money.

3. [uncountable] LAW an arrangement by which someone has legal control over your money or property until you are old enough to use it:

• The money your father left you will be held in trust until you are 21.

4. [countable] LAW FINANCE an arrangement by which someone has legal control over your money and usually invests it for you, or an organization that does this:

• He put his assets in a variety of trusts.

• a bank trust department

ˌblind ˈtrust [countable] LAW FINANCE
a trust that belongs to someone who does not know what investments have been made with the money in the trust. Blind trusts are used by politicians and others so that they can show that their decisions are not being influenced by their personal investments
ˈbusiness ˌtrust [countable] LAW FINANCE
in the US, a trust that operates as a business, and manages investments, property etc for businesses
ˈcharitable ˌtrust [countable] LAW FINANCE
a trust formed with the purpose of giving money to a charity; = PUBLIC TRUST:

• Local people raised £600,000 and set up a charitable trust to run the hospital.

conˈstructive ˌtrust [countable] LAW FINANCE
a trust that is created by the law of equity rather than by the people who will gain from it; = IMPLIED TRUST
deˈbenture ˌtrust [countable] LAW FINANCE
a trust made by a company, that holds the company's assets that are security for debenture stock (= borrowed capital)
disˈcretionary ˌtrust LAW FINANCE
1. [countable] a trust whose managers are allowed to decide the best way of managing the trust and the best way of sharing its income and capital:

• A discretionary trust fund was set up to help disabled people living at home.

2. [countable] an arrangement for leaving money to someone in a trust after you die, where the person managing the trust decides when to make payments, how much to pay etc:

• If you are worried about your relative not being able to manage money, you could leave a sum of money on discretionary trust.

ˈexecuted ˌtrust [countable] LAW FINANCE
a trust that has clear instructions about how it is to be used, usually one formed by a person in their will (= a document saying how someone's property is to be shared out when they die)
ˈexecutory ˌtrust [countable] LAW FINANCE
a trust that does not give full details about how it is to be used, usually one formed by a person in their will (= a document saying how someone's property is to be shared out when they die). A further document is needed before the person's intentions can be carried out
exˈpress ˌtrust [countable] LAW FINANCE
a trust that has been formed by clearly stated words, rather than by the law of equity
ˈfixed ˌtrust [countable] LAW FINANCE
a trust whose funds can only be invested in a particular range of bonds, shares etc
ˈflexible ˌtrust , ˌgeneral ˈmanagement ˌtrust [countable] LAW FINANCE
a trust whose funds can be invested in any type of shares etc, within agreed limits
imˈplied ˌtrust [countable] LAW FINANCE
another name for a constructive trust
ˈliving ˌtrust [countable] LAW FINANCE
a trust in which someone's assets are passed to another person before they die, done to avoid the trust having to go through probate (= the sometimes long legal process of dealing with a dead person's will):

• She has transferred her properties to a living trust.

ˈprivate ˌtrust [countable] LAW FINANCE
a trust set up for a named person or group of people:

• The publicly quoted company never seemed to do as well as the family's own private trusts.

ˈpublic ˌtrust [countable] LAW FINANCE
a trust formed to provide financial support for groups that are poor or in urgent need of help. Public trusts do not have to pay tax in most countries; = CHARITABLE TRUST
ˈunit ˌtrust [countable] FINANCE
a company that invests money in stocks and shares of many different businesses for small investors; = mutual fund AmE:

• The best way to invest in a portfolio of international bonds is through a managed fund, such as a unit trust.

5. [countable] especially AmE ECONOMICS LAW a group of companies that illegally work together to reduce competition and control prices:

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trust UK US /trʌst/ noun
[U] belief that you can depend on someone or something: »

Following the recent scandals the industry has to rebuild public trust.

»

Any good business relationship is built on mutual trust.

»

He was elected as a public official in a position of trust.

[C or U] LAW, FINANCE a legal arrangement in which you give a person or organization the right to manage money or property for a particular person or group of people that you have chosen to receive the money: »

In her will she set up a trust to provide scholarships for young musicians.

»

His inheritance was held in trust until he reached 18.

»

They consulted a solicitor on how to move the controlled trust money.

[C] LAW, FINANCE an organization that manages money or property for another person or group: »

set up/establish a trust

»

The company is owned by a trust on behalf of staff.

»

She is director of the not-for-profit trust that runs the parks.

[C] LAW, FINANCE an arrangement between two or more companies to work together illegally, for example to control prices: »

There are difficulties with the laws relating to illegal trusts.

»

The agreement was found to have breached US anti trust laws.

See also ACTIVE TRUST(Cf. ↑active trust), BLIND TRUST(Cf. ↑blind trust), BRAINS TRUST(Cf. ↑brains trust), BREACH OF TRUST(Cf. ↑breach of trust), BUSINESS TRUST(Cf. ↑business trust), CHARITABLE TRUST(Cf. ↑charitable trust), CONSTRUCTIVE TRUST(Cf. ↑constructive trust), DEED OF TRUST(Cf. ↑deed of trust), DISCRETIONARY TRUST(Cf. ↑discretionary trust), EXECUTED TRUST(Cf. ↑executed trust), EXECUTORY TRUST(Cf. ↑executory trust), EXPRESS TRUST(Cf. ↑express trust), FIXED TRUST(Cf. ↑fixed trust), FLEXIBLE TRUST(Cf. ↑flexible trust), IMPLIED TRUST(Cf. ↑implied trust), INVESTMENT TRUST(Cf. ↑investment trust), LIVING TRUST(Cf. ↑living trust), PRIVATE TRUST(Cf. ↑private trust), PUBLIC TRUST(Cf. ↑public trust), UNIT TRUST(Cf. ↑unit trust)

Financial and business terms. 2012.

Synonyms: