Trusts Covered by the Trust Code

The Three Categories of Trusts Covered

Not every arrangement called a "trust" falls under the Trust Code. This statute draws the boundary by naming three types the code governs.

First, express trusts. A person creates these on purpose through a trust document or a will. Second, charitable trusts, which serve a charitable purpose rather than named individuals.

Third, trusts set up by a court order or statute. These must follow the same rules as an express trust.

What This Does Not Cover

Constructive trusts and resulting trusts fall outside this chapter. Courts create those as remedies, not as planned arrangements.

Business trusts used mainly as investment vehicles are also excluded. This means most families will find that their trusts do fall within the code.

Revocable living trusts, irrevocable trusts, special needs trusts, and charitable trusts are all covered. As a result, rules about fiduciary duty, beneficiary rights, and trust changes all apply.

The Trust Code sets clear standards for trustee conduct and beneficiary rights. The trust document itself defines each beneficiary's interests.