TRUSTEE

The person appointed, or required by law, to execute a trust; one in whom an estate, interest, or power is vested, under an express or implied agreement to ad- minister or exercise it for the benetit or to the use of another. "Trustee" is also used in a wide and per- haps inaccurate sense, to denote that a per- son has the duty of carrying out a transaction, in which he and another person are interested, in such manner as will be most for the bene- fit of the latter, and not in such a way that he himself might be tempted, for the sake of his personal advantage, to neglect the inter- ests of the other. In this sense, directors of companies are said to be "trustees for the shareholders." Sweet.

out any consolidation or merger. This device was the erection of a central committee or board, composed, perhaps, of the presidents or general managers of the different corporations, and the transfer to them of a majority of the stock in each of the corporations, to be held “in trust’ for the several stockholders so assigning their holdings. These stockholders received in return “trust certificates” showing that they were entitled to receive the dividends on their assigned stock, though the voting power of it had passed to the trustees. This last feature enabled the trustees or committee to elect all the directors of all the corporations, and through them the officers, and thereby to exercise an absolutely controlling influence over the policy and operations of each constituent company, to the ends and with the purposes above mentioned. Though the “trust,” in this sense, is now seldom if ever resorted to as a form of corporate organization, having given place to the “holding corporation” and other devices, the word has become current in statute laws as well as popular speech, to designate almost any form of combination of a monopolistic character or tendency See Black, Const. Law (3d Ed.) p. 428; Northern Securities Co. v. U. S., 193 U. S. 197, 24 Sup. Ct. 436, 48 L. Ed. 679; MacGinniss v. Mining Co., 29 Mont. 428, 75 Pac. 89; State v. Continental Tobacco Co., 177 Mo. 1, 75 S. W. 737; Queen Ins. Co. v. State, 86 Tex. 250, 24 S. W. 397, 22 L. R. A. 483; State v. Insurance Co., 152 Mo. 1, 52.8. W. 595, 45 L. R. A. 363; Gen. St. Kan. 1901, § 7864; Code Miss. 1892, § 4437; Cobbey’s Ann. St. Neb. 1908, § 11500; Bates’ Ann. St. Ohio, 1904, § 4427; Code Tex. 1895, art. 976. The person appointed, or required by law, to execute a trust; one in whom an estate, interest, or power is vested, under an express or implied agreement to administer or exercise it for the benefit or to the use of another. “Trustee” is also used in a wide and perhaps inaccurate sense, to denote that a person has the duty of carrying out a transaction, in which he and another person are interested, {n such mianner as will be most for the benefit of the latter, and not in such a way that he himself might be tempted, for the sake of his personal advantage, to neglect the interests of the other. In this sense, directors of companies are said to be “trustees for the shareholders.” Sweet. —Conventional trustee. A “conventional” trustee is one appointed by a decree of court to execute a trust, as distinguished from one pppelnted by the instrument creating the trust. Gilbert v. Kolb, 85 Md. 627, 37 Atl. 4238.—Joint trustees. Two or more persons who are intrusted with property for the benefit of one or more others.—Quasi trustee. A person who reaps a benefit from a breach of trust, and so becomes answerable as a trustee. Lewin, Trusts (4th Ed.) 592, 688.—Testamentary trustee. A trustee appointed by or acting un- der a will; one appointed to carry out a trust created by a will. ‘I'he term does not ordinaril include an executor or an administrator with the will annexed, or a guardian, though all of these are in a sense trustees, except when they act in the execution of a trust created by the will and which is separable from their functions as executors, ete. ard, 51 Hun, 201, 4 N. Y. Supp. 701; In re Valentine’s Estate, 1 Misc. Rep. 491, 23 N. Y. Supp. 289; In re Hawley. 104 N. Y. 250, 10 N. E. 352.—Trustee acts. The statutes 13 & 14 Vict. c. 6, passed in 1850, and 15 & 16 Vict. c. 55, passed in 1852. enabling the court of chancery, without bill filed, to appoint new trustees in lieu of any who, on account of death, lunacy, absence, or otherwise, are unable or unwilling to act as such;'‘and also to make yestine ower by which legal estates and rights may transferred from the old trustee or trustees to the new trustee or trustees s0 Mozley & Whitley. —Trustee ex maleficio. A person who, being guilty of wrongful or fraudulent conduct, is held by equity to the duty and liability of a trustee, in relation to the subject-matter. to prevent him from profiting by his own wrong.— stee in ptecy. <A trustee in bankruptcy is a person in whom the property of a bankrupt is vested in trust for the creditors.—Trustee process. The name given, in the New England states, to the process of garnishment or foreign attachment.—Trustee.relief acts. The statute JO & J1 Vict. c. 96. parsed in 1847. and statvte 12 & 13 Vict. c. 74, passed in 1849. by which a trustee is enabled to pay money into court. in cases where a difficulty arises resnectpe fhe title to the trust fund. Mozley & Whitey. appointed.

(1300) overruling Sykes v. Beadon, 11 Ch. D. 170, veyancing Act, 1881, s. 30. (See DESCENT, where the question whether the "trust" in that case was a lottery was raised. 8.) There is no forfeiture or escheat by failure of the heirs or corruption of the blood of a trustee. Stat. 13 and 14 Vict. TRUST, (defined). 21 Conn. 613; 88 III. 490. c. 60, s. 47; Wms. Real Prop. 168;) and (what is). 50 N. H. 491. (what is not). 8 Jur. 1086. (is not an estate in land). 3 Harr. (how proved). 1 Johns. (N. Y.) Ch. now when any sole trustee or mortgagee of real estate dies after December 31st, 1881, the same shall, notwithstanding any testamentary disposition, devolve to his (N. J.) 390. 342; 5 Id. 1.. (need not be created by writing). 3 personal representatives as if it were a Cow. (N. Y.) 580. chattel real. (Conveyancing Act, 1881, s. create). 31 Md. 158; 8 Jur. 923; 5 Myl. &C 30.) When a new trustee is appointed in (what words in a will necessary to 73; 2 Younge & Coll. C. C. 363. (raised by implication). 3 Ves. 696. TRUST, EXECUTORY, (distinguished from an "executed trust"). 1 Jac. & W. 549. TRUST, IN, (in a will). 8 Pet. (U. S.) 326. TRUST, RESULTING, (may be established by parol). 2 Johns. (N. Y.) Ch. 408. TRUSTEЕ.- 21. In the strict sense of the word a trustee is a person who holds property upon trust (q. v.) As to private trustees, or trustees acting under wills, settlements, and similar instruments. the place of the deceased, his real or personal representatives convey the property to the new trustee by the same modes of conveyance (deed of grant, assignment, &c.,) as those used in conveyances by absolute owners; until that is done, they hold the property upon trust so to convey it, but they are not clothed with the office of trustee under the instrument creating the trust unless it so provides, and therefore they cannot exercise any of the powers conferred by the trust. 4. Trusteeship is also different from executorship. Therefore, if a testator appoints A. to be executor and trustee of his will, and A. renounces the executorship, he remains trustee unless he executes a disclaimer of the office. See DISCLAIM; (1301) new trustees by a declaration contained in ties of such trustees are of infinite variety; the deed of appointment. but it may be said generally that a trustee 26. Trustee acts. In the case of instruis bound to take the same care in acting ments executed before 28th August, 1860, and for his cestui que trust as he would, if a generally whenever it is impossible to appoint new trustees, or to obtain a conveyance of the prudent man, in acting for himself (Lew. trust property, recourse must be had to the court Trusts 260; Wats. Comp. Eq. 892); and under the provisions of the Trustee Acts (g. v., that he must not derive or attempt to deand see VESTING ORDER). Section 31 of the Conveyancing Act, 1881, (giving a power of rive any benefit from the trust (Lew. Trusts appointing new trustees where the instrument 243; Wats. Comp. Eq. 885), unless he is creating the trusts contains no sufficient power,) authorized to do so by the cestui que trust or applies to trusts created either before or after the terms of the trust. See BREACH OF the 31st December, 1881. It therefore applies to trusts which were not within the provisions of the Trustees and Mortgagees Clauses Act, by reason of their having been created before the 28th August, 1860. 27. Statutory powers. In addition to the powers given to trustees by the instruments creating the trusts under the English law, powers have been conferred on them by statute, especially by the Trustees and Mortgagees Act, 1860, (supplemented by the Conveyancing Act, 1881, 35,) giving trustees power in relation to the sale of real property, and the renewal of leases, &c. As to their statutory powers of investment, see INVESTMENT. The Conveyancing Act, 1881, 37, empowers trustees to compound and compromise debts, claims, &c., and gives them extensive powers of managing estates belonging to infants, and of applying the income. Lord St. Leonard's Act (Stat. 22 and 23 Vict. c 35) gives trustees a statutory indemnity for losses not caused by their own acts or defaults, and a power to reimburse themselves for their expenses. (See Shelf. R. P. Stat. 724.) As to the power of trustees of wills to pay debts, see EXECUTOR, 26; as to the power of trustees to apply to the court for advice, see EXECUTOR, 10. 28. Action for execution of trust. - If a trustee cannot safely administer a trust, he may institute an action to have it executed by the court; or, in a proper case, place the trust fund in the hands of the court. If a trustee refuses or neglects to administer the trust, or is guilty of a breach of trust, or the like, any beneficiary may institute an action for the execution of the trust by the court. (See ADMINIS TRATION; DISCRETION; EXECUTOR, & 12.) The powers of trustees are suspended by the institution of a suit for the execution of the trusts, and they can only act with the sanction of the court. Wats. Comp. Eq. 892. Trustees are of two kinds, active and passive. Urlin Trust. 3; see TRUST, & 11. 9. Active. An active trustee is one who has to perform administrative duties, such as managing the trust property, receiving income and paying it over to the cestuis que trust, &c. The duties and liabiliTRUST; DISCRETION; NEGLIGENCE. 10. Passive. - A passive trustee is one in whom property is vested simply for the benefit of another person. In such a case the trustee is bound to convey the property to the cestui que trust, or to dispose of it as he may direct, when the time comes for the cestui que trust to deal with it, and in the meantime to hold it on his behalf. Lew. Trusts 18; Urlin 3; Wats. Comp. Eq. 891. 11. Bare, or dry. When the duties of an active trustee have come to an end, or when the time for the cestui que trust to claim possession of the trust property has come, so that in either case the trustee is compellable to convey the property to the cestui que trust, or deal with it according to his directions, then the trustee is called a "bare," or "dry trustee." (See Lysaght v. Edwards, 2 Ch. D. 509; L. R. 5 H. L. 356.) As to the meaning of the term as used in the Land Transfer Act, 1875, § 48, see Christie v. Ovington, 1 Ch. D. 279; Morgan v. Swansea Urban Sanitary Authority, 9 Ch. D. 582. The use of the expression "bare trustee" in the Fines and Recoveries Act (3 and 4 Will. IV. c. 74, 88 27, 31) has not been explained. 12. Public trustees. As to trustees acting on behalf of the public, or a section of the public, or a large body of persons. Such trustees, if they have any active duties to perform, are usually remunerated for their trouble, while ordinary trustees (supra, ¿ 2) rarely are. An important example of this kind of trustee is the trustee in a bankruptcy or liquidation. See TRUS- (1302) &c., on behalf of the company, the trustee having no personal interest in them. The object generally is to enter into such arrangements for the purchase of property as may serve as a basis for the operations of the company, but so as not to be binding until the company is formed and adopts them. For an example, see In re Western of Canada Oil, &c., Co., 1 Ch. D. 115. See FRAUD, & 16; PROMOTER; RATIFICATION, 2. 14. Trustee of loan. - When a loan or issue of debentures, bonds, or the like, is created by a corporation or foreign government, and is intended to be secured by a charge on property, trustees are frequently appointed on behalf of the holders of the bonds or stock to receive and administer the property or the income thereof for their benefit, subject to provisions contained in a document called a "trust deed." See National Bolivian Navigation Co. v. Wilson, 5 App. Cas. 176. As to trustees of charities, see CHARITABLE TRUSTS ACT; OFFICIAL TRUSTEE OF CHARITABLE FUNDS; OFFICIAL TRUSTEE OF CHARITY LANDS; SUCCESSION, & 2. 15. Trustee is also used in a wide, and, perhaps, inaccurate sense, to denote that a person has the duty of carrying out a transaction, in which he and another person are interested, in such manner as will be most for the benefit of the latter, and not in such a way that he himself might be tempted, for the sake of his personal advantage, to neglect the interests of the other. In this sense, directors of companies are said to be "trustees for the shareholders." (Ferguson ข. Wilson, 2 Ch. 77; Great Eastern Rail. Co. v. Turner, 8 Ch. 149.) The essential difference is, that a trustee owns the trust property and deals with it as principal, subject to his equitable obligation towards his cestui que trust, while a director is rather an agent with a limited authority. Smith v. Anderson, 15 Ch. D. 275. TRUSTEE, (Covenant by). 4 Conn. 495. 487. (lessee may be held as). 11 Mass. TRUSTEES, (in a statute). 1 Edw. (N. Y.) Ch. 311; 5 Redf. (N. Y.) 458; L. R. 3 Ch. 787. Court of Justice, on petition presented in the Chancery Division,) to appoint new trustees of a settlement, will or other instrument creating a trust, whenever a trustee's death, lunacy, absence or refusal to act, or other reason, makes it necessary to apply to the court; in other words, when the power of appointing new trustees contained in the instrument, or provided by statute, cannot be exercised. (See TRUSTEE, 25, 6.) They also empower the court, where property is held upon trust or mortgage by a lunatic or person of unsound mind, or out of the jurisdiction of the court, to transfer it by a vesting order (q. v.) to some other person, or to make an order appointing some person to execute a deed in the place of a trustee or mortgagee, so as to give it the same effect as if the trustee or mortgagee had executed it. Lew. Trusts; Shelf. R. P. Stat. 647; Dan. Ch. Pr. 1798; Pope Lun. 263. See

A person to whom property is legally committed in trust, to be applied either for the benefit of specified individuals, or for public uses; one who is intrusted with property for the benefit of another; also, a person in whose hands the effects of another are attached in a trustee process. Trustee process (Law), a process by which a creditor may attach his debtor's goods, effects, and credits, in the hands of a third person; -- called, in some States, the process of foreign attachment, garnishment, or factorizing process. [U. S.]

To commit (property) to the care of a trustee; as, to trustee an estate. To attach (a debtor's wages, credits, or property in the hands of a third person) in the interest of the creditor. [U.S.]

To commit (property) to the care of a trustee. | To attach (a debtor's wages, credits, or property in the hands of a third person) in the interest of the creditor.

A person to whom property is legally committed in trust, to be applied either for the benefit of specified individuals (beneficiaries), or for public uses; one who is intrusted with property for the benefit of another. | A person in whose hands the effects of another are attached in a trustee process.