Capacities of Trust and Equity

The capacity of trust refers to the powers and abilities of a trustee in managing a trust fund. This includes holding assets, entering into contracts, issuing or accepting legal proceedings, and other activities that are necessary for the functioning of a trust. The document provides a brief summary of these capacities and references relevant literature in the field of equity and trusts.

Equity and trust

Table of Contents
(a) What are the capacities of trust..................................................................................................3
REFERENCES................................................................................................................................4

(a) What are the capacities of trust
Trust is being created when a particular settler transfers any kind of defined asset to a
trustee to hold the benefits of one or more beneficiaries 1. The tern trust in layman describes
about fiduciary arrangement or relationship between those parties. In countries like Bermuda,
role of trust is high and have power to influence any other party to engage. The capacity of trust
consist of various legal holdings or any kind of legality in an organisation. The capacity of trust
are as follows:
Holding of an assets: It is a common misconception amongst practitioners that a asset in
a trust fund are owned by a trust. It is the major capacity of legal title to vested in the trustee.
Entering into contracts or agreements: As a matter of convenience, trust is often
named by the practitioners as a party to an agreement 2. Thus, the capacity of the trust is to hold
contract for a longer duration to maintain any kind of legality into the process or its functioning.
Issuing or accept legal proceedings: As a trust is not any kind of legal entity, it cannot
issue or accept legal proceedings. In this situation, where actions are generally taken for or may
be against of trust, court may be amenable to amending the proceedings to refers to the trustee.
Brief summary: It is to be briefed that capacity of trustee is very long and centric towards
the development of any legal proceedings 3. It has also become necessary to make relevant and
suitable law for enhancing the capacity of the trust.
1 Dal Pont, Gino Evan. ("equity and trusts: Commentary and Materials." (2018).
2 Fox, M. A., and J. D. Krige. ("Investigating the sources of performance in South African
general equity unit trusts." Investment Analysts Journal 42.77 2013): 45-54.
3 Edelstein, Robert, and Konstantin Magin. "The equity risk premium for securitized real
estate: The case for us real estate investment trusts. ("Journal of Real Estate Research35.4
2013): 393-406.

REFERENCES
Books & Journals