Trusts and equity
Trusts, fiduciaries & equity
Trusts and equity explained: how trusts are formed and administered, what fiduciaries owe, and how courts grant equitable relief.
Overview
What this school covers
Express, resulting and constructive trusts; the roles of settlor, trustee and beneficiary; fiduciary duties of loyalty and care; and equitable remedies such as injunctions, specific performance, rescission and accounting. Each topic page cites the governing statute or restatement and notes where states differ.
Trust formation
Settlor, trustee, beneficiary and trust property.
Fiduciary duties
Loyalty, care and accounting.
Equitable remedies
Injunctions, specific performance, rescission.
Pages
In this section
In editorial review. Pages in this section are being researched. Each one is published only after its citations are checked against the official text.
Overview
Studying trusts and equity
Trusts and equity grew up together. Historically, courts of equity enforced trusts when the common-law courts would not. Today, most states combine both kinds of power in the same courts.
A trust has three main roles. First, the settlor creates it. Next, the trustee holds and manages the property. Then the beneficiaries receive the benefit. In addition, the trustee owes fiduciary duties, such as loyalty and care.
Equity also gives courts remedies beyond money damages. For example, a court can order an injunction, specific performance or rescission. However, each state sets its own trust law. Many states have adopted the Uniform Trust Code, a model law from the Uniform Law Commission, often with changes.
Finally, trust law is complex. For a real trust, talk to a licensed attorney in your state.
Our guides explain the core ideas in order. First come the parts of a trust and how it is created. Next come the duties a trustee owes. Then come the remedies a court can order when those duties are broken.
Each guide cites the statute or restatement it relies on. However, state law controls, so always read your own state’s trust code as well.
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.