TRUST, an arrangement by which property is handed to or vested in a person, in the trust or confidence that he will use and dispoe of it for the benefit of another. In England, land was in early times frequently conveyed to persons in whom the owner had con fidence that they might hold it to the use of other persons indicated by him. The use was turned into a legal estate by statute in 1535, but the equitable powers of the Chancery remained, and were free ly used to enforce any trust, whether relating to land or to personal property. Trusts of land must be declared in writ ing, but this rule does not apply to trusts raised by implication or construction of law. Thus, if A purchases land with the money of B, he holds it as trustee for B, although there may be no written agree ment between them. The person who holds property in trust is a trustee; the person for whose benefit he holds is called cestui que trust (he that has the benefit of the trust). In declaring a trust no special formula is necessary, but the intention of the party making it must be clear. Thus, in wills, a testator sometimes uses words which do not amount to an express trust, but speaks of his "wish and desire" or his "con fidence," that the executor or trustee shall do certain things. These are called in the law precatory trusts; they are enforced if no uncertainty exists as to the purposes or mode of carrying out the trust. A trustee's is not a compulsory office, but gratuitous; but if he once accept he is not at liberty afterward to renounce, unless the trust deed contain a provision enabling him to do so, or the court for good reasons discharge him. A trustee cannot delegate the office to a third person, but continues personally bound to do his duty. Where there are several trustees appointed, the office is considered joint, so that if one dies, the survivors continue to exercise the office. As a rule, all must join in doing any act; but if the trust is of a public nature a majority may bind the minority. Each trustee is liable only for his own acts or defaults, and this is so even though, for form's sake, he join his co-trustees in signing a receipt, if he can show that he never received the money in point of fact. When money lies in the hands of one trustee the others ought not to be satisfied with his mere statement that the money has been invested by him, but should see that it is actually done. An
other rule is that a trustee is not allowed to make a gain of his office, and so jealous is an English court of this rule that trus tees have sometimes been restrained by the court from shooting over the trust estate. A trustee is personally liable if he trade with the trust funds, or buy shares in a joint stock bank; for, even though the trust deed authorize this to be done, he will be liable to pay the debts of the trading concern, though far exceeding the amount of the trust funds. So, if a trustee is a solicitor, and does legal business for the estate, he will not be allowed to charge for his care and trouble, but at most will be allowed only the cost out of pocket. It is seldom that a trustee can get any benefit to himself from the trust estate. Formerly if cestui que trust died without heirs land held in trust belonged to the trustee, but the rule has been altered by statute, and the escheat is now to the State. It is the duty of a trustee to keep the trust funds safe and if they consist of moneys, then he ought to invest them in govern ment bonds, and not let the money lie unproductive. He is not entitled to lend money on personal security, or in the shares of any private company; but he may invest in mortgages, unless he is forbidden by the deed or will. If there is no power to invest in mortgages, the trustee must invest in State, city, or government bonds, or in some security authorized by the orders of the Supreme Court. As a rule, trustees must pay in terest whether they invest the funds or not (if they have had time to invest) to the cestui que trust; and they must ac count for all the profits they make with the trust funds whether rightly or wrongfully. If a trustee has grossly misconducted himself as to the trust funds he will be charged five per cent. interest. A trustee is entitled to be in demnified for all the reasonable expenses or outlays attending the execution of the trust, but he must in general bear the loss of any mistake as to the law; but if there is any peculiar difficulty in carry ing out the trust, he is entitled to take the opinion of, or even to throw the chief management on the courts, as the only safe protection. When trustees are guilty of gross negligence, mismanage ment, or misconduct, the court will re move them and appoint others.