Unincorporated trust
Unincorporated trust: A trust that is not set up as a corporation. Most private trusts are unincorporated: a trustee holds property for beneficiaries under the trust document, and the trust itself is not a separate legal entity in most states. Some states also allow business or statutory trusts, such as a Delaware statutory trust (12 Del. C. § 3801 and following). In IRS Notice 97-24, the IRS warned that abusive trust arrangements, including some business trusts, do not reduce taxes when the owner keeps control of the property.
What unincorporated trust means
Put simply, unincorporated trust is part of the working vocabulary of a civil case. The short definition above covers the usual meaning. Still, a specific rule, statute or contract can give it a narrower meaning. For that reason, check how it is used in your own documents.
Where unincorporated trust comes up
The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.
How to research the term
To research unincorporated trust, begin with the rule, statute or contract where the word is used. Each one can give it a slightly different meaning. Then compare that text with how courts in your area have applied it. Also check the local rules of your court, since they can add requirements. If your case is in state court, the state rules control. So start with our state procedures guide to find them. In the end, always confirm that the source you rely on is current.
You can read the current federal court rules online for free.
Related legal terms
- Ultra vires: latin for "beyond the powers." Describes an act that goes beyond the legal authority of the person or entity that took it — for example, a corporation acting outside its charter or an agency acting beyond the power Congress gave it.
- Unalienable rights: rights that cannot be surrendered or transferred, which the Declaration of Independence says people are "endowed by their Creator" with, "among these are Life, Liberty and the pursuit of Happiness." The term is also spelled "inalienable." Many are protected in the Bill of Rights and enforced through the courts.
- Unauthorized practice of law: practicing law without a license, such as representing another person or entity in court. A non-lawyer trustee who represents a trust with other beneficiaries in court may be practicing law without a license. Each state defines and regulates the practice of law.
- Uniform Commercial Code: a model law covering commercial transactions such as sales and secured transactions. It has force only as each state enacts it.
Why precise terms matter
Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.
Sources
Sources last reviewed: 2026-10-24
Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.