Chapter 1
Introduction to Business Trusts
A business trust is an arrangement where trustees hold and manage business property for the benefit of holders of beneficial interests. Historically known as the 'Massachusetts trust', it predates modern LLC statutes. Today, many jurisdictions recognize statutory business or statutory trusts as distinct legal entities.
Hypothetical scenario
Maria and two partners want to jointly own a warehouse that generates rental income. Their advisor explains that a statutory trust, an LLC, and a partnership could all hold the property — each with different governance, liability, and tax outcomes.
Knowledge check
Who manages property in a business trust?
Educational content only. Not legal, tax, or investment advice. Trust law differs by jurisdiction. Consult qualified professionals before acting.