ANCE; ) Influenced, however, by the same powerful motives which were responsible for the development of the system of uses, the early lawyers, by a method of reasoning now dif ficult to understand, ultimately gave to the stat ute a meaning and effect the exact opposite of that intended. It was held that when land was granted to A for the use of B, the efficiency of the statute to vest the grantee to uses with the legal title was exhausted, so that if the grant was made to A for the use of B for the use of C, then B, who acquired the legal title by operation of the statute, would hold it for the benefit of C. It was also held that when an active duty was imposed upon the grantee to uses or trustee, as by a grant of real estate to A to collect and pay over the rents to 11, the use was not executed by the statute by making B the legal owner, but was enforceable by Chancery as before the statute. The result, therefore, was that the sytein of trusts was preserved and its development stimulated rather than hindered by the statute. In both England and the United States there is a. com plete system of trusts of both real and personal property. either as developed by courts of equity or modified by statutes.
In order to create a trust all that is now neces sary is that one should convey or grant, either by will or by grant intcr riros. specific property to one in trust for another, or that one having the legal title to such property should declare that he holds it in trust for another. No consideration is neoessary to create a trust, and no writing or other formal document is required, except that trusts of real estate are required by the Statutes of Frauds to be evidenced by writing. No par ticular words are necessary, but the intention of the person creating the trust mug, be clear. Any legal person or a corporation if within its cor porate powers may become a trustee. Formerly the legal title held by the trustee, according as it was Mal or personal property, passed upon his death to his heirs or next of kin, whom equity would compel to hold the property for the bene fit of the beneficiaries under the trust, but gen erally by modern statutes provision is made in case of the death or misconduct of a trustee for the appointment by the court of a new trustee, who acquires the title of the first trustee. Any legal person may be a cestui que trust, but it has been held upon somewhat nnsatisfactory reason ing that trusts for the benefit of unascertained beneficiaries or for the benefit of inanimate objects were invalid, even though the trustee was able and willing to carry out the trust. In general.
also, all the rules governing and determining the illegality of agreements are applied by courts of equity in determining the validity of trusts.
Trusts have been classified with reference to the manner of their creation as Express, Implied, Resulting, and Constructive. (1) The express trust is one created by the intent of the person creating or declaring the trust, expressed in written or spoken language, such as the trust created by express clauses in a will or by a for mal declaration of trust. (2) The term 'implied trusts,' which has been sometimes applied to constructive trusts, denotes trusts created by the intent of the person creating or declaring it, when his conduct or language, either written or spoken. is such that the court infers or implies the in tention to create the trust. (3) Resulting trusts are trusts which are not created as a consequence of actual intention, but which courts of equity in certain instances treat as trusts intended to be created. As it is said, under certain circum stances, the intention to create a trust is pre sumed. Thus, if the purchaser of real estate pays the purchase price, but takes the title in the name of a third person, the courts of equity hold that a resulting trust is created in favor of the purchaser, or when one conveys property to a trustee upon a trust which fails or is illegal, a resulting trust is deemed to be created in favor of the grantor, and in many cases when volun tary conveyances or conveyances without consid eration are made a resulting trust is implied in favor of the grantor. (4) Constructive trusts include all those cases not included in the pre ceding classes in which courts of equity upon sonic equitable ground will compel the person having the legal title or interest in property to hold it for the benefit of another. Like result ing trusts, they differ from express and implied trusts in that they are not created as a eonse quence of intention of the interested parties. Thus, whenever the legal title of property has been wrongfully acquired by fraud, the person guilty of the fraud, or any person claiming under him who is not a bona-fide purchaser of the property for value, will be treated as a trustee and compelled to turn the property over to the person defrauded who is a constructive eestui (pc trust. Equity acts in a similar manner in enforcing equitable liens (q.v.) by compelling the hence to hold the property subject to the claim of the Ileum..