TRUST IN BUSINESS™

Trust Lesson

Statutory Trust

A trust formed under a specific statute (for example, the Delaware Statutory Trust Act) that may be recognized as a separate legal entity.

How it works

Formed by filing a certificate of trust; governed by a trust agreement. Used in finance, real estate, and investment funds.

Common uses

  • — Securitization vehicles
  • — Fractional real estate investment structures
  • — Investment funds

Key considerations

  • — Tax classification depends on the arrangement
  • — Interests may be securities
  • — Statutory formalities must be maintained

Educational content only. Not legal, tax, or investment advice. Trust law differs by jurisdiction. Consult qualified professionals before acting.

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