Also known as: held in trust · trust
Written by attorneys · grounded in primary & secondary sources — see below
Property held by one party who possesses legal title for the benefit of another who possesses the equitable interest. The arrangement affects risk of loss, creditor rights, and allocation of benefits and burdens during any executory period.
Ines Ibarra signed a contract to buy a warehouse from Insight Consulting. Before closing, a storm damaged the roof. Because Ines held the equitable interest, she bore the loss and still had to pay the full purchase price at closing.
Seller Sam conveyed no deed yet to Buyer Beth after signing a land contract. Sam still held legal title in trust for Beth, who therefore acquired the equitable interest that governs risk allocation until closing.
Owner Owen contracted to sell Blackacre to Purchaser Pam. Before closing Owen's creditor attempted to reach the land. Because Owen held only legal title in trust, the creditor could not defeat Pam's equitable interest.
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Vendor Vic contracted to sell improved realty to Vendee Val. During the executory period rents accrued and taxes became due. Because Val held the equitable interest those benefits and burdens fell on Val.
After signing a binding land contract, Buyer Bob died. Bob's heir received Bob's equitable interest because the seller continued to hold legal title in trust for the buyer under equitable conversion.
After contract formation but before deed delivery a fire destroyed part of the premises. Because the buyer held the equitable interest the buyer bore the loss even though the seller still possessed legal title in trust.
Once a binding contract for the sale of land is formed, the seller holds legal title in trust for the buyer under equitable conversion. The buyer thereby acquires an equitable interest that determines who bears the risk of loss and how benefits and burdens are allocated during the executory period.
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No. Marital property transferred to a trust remains marital property under the Uniform Marital Property Act. Each spouse continues to hold a present undivided one-half interest despite the transfer.
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A lawyer may deposit only enough of the lawyer's own funds to cover bank service charges on the account. Any larger deposit would violate the requirement that client funds remain separate from the lawyer's own property.
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…indeed, achieved by a shorter cut than the constitutional way of paying for the change. Footnotes [^maj-1]: See National Trust for Historic Preservation, A Guide to State Historic Preservation Programs (1976); National Trust for Historic Preservation, Directory of Landmark and Historic District Commissions (1976).…