ABSTRACT
A trust arises when the equitable ownership of property is separated from its legal ownership. In the typical case, a trust arises because Equity’s view differs from that of the Law: according to the Law, ownership is vested in one person or group of people; according to Equity, it is vested in another or others. The legal owner (the trustee) is compelled by Equity to treat the property as if it belonged to the equitable owners (the beneficiaries). The relationship between the two is described as a trust: the legal owner is said to hold the property on trust for the beneficiaries; the beneficiaries are said to own equitable (or beneficial) interests under the trust.
