Trust law - Wikipedia
In this article, the relation between political trust and law-abiding attitudes is investigated. It is expected that citizens with low levels of trust in the. political sociology conceived as a study of the relationship between politics and the wider society. trust, and (3) the relationship of different forms of social trust to political trust. Hence Rule of law 3 general trust. ***. Debates around political trust, notwithstanding ostensible disagreements, have converged on a conceptualization that is more . approach to the relation between trust and democ- .. private law of Rome supplied an alternative to the.
The Crusader was the "beneficiary" and the acquaintance the "trustee". The term "use of land" was coined, and in time developed into what we now know as a trust. Significance[ edit ] The trust is widely considered to be the most innovative contribution of the English legal system. Trusts are widely used internationally, especially in countries within the English law sphere of influence, and whilst most civil law jurisdictions do not generally contain the concept of a trust within their legal systems, they do recognise the concept under the Hague Convention on the Law Applicable to Trusts and on their Recognition partly only the extent that they are parties thereto.
The Hague Convention also regulates conflict of trusts. Although trusts are often associated with intrafamily wealth transfers, they have become very important in American capital markets, particularly through pension funds in certain countries essentially always trusts and mutual funds often trusts. The uses of trusts are many and varied, for both personal and commercial reasons, and trusts may provide benefits in estate planningasset protectionand taxes.
Living trusts may be created during a person's life through the drafting of a trust instrument or after death in a will. In a relevant sense, a trust can be viewed as a generic form of a corporation where the settlors investors are also the beneficiaries. This is particularly evident in the Delaware business trust, which could theoretically, with the language in the " governing instrument ", be organized as a cooperative corporation or a limited liability corporation, : One of the most significant aspects of trusts is the ability to partition and shield assets from the trustee, multiple beneficiaries, and their respective creditors particularly the trustee's creditorsmaking it " bankruptcy remote ", and leading to its use in pensions, mutual funds, and asset securitization  as well protection of individual spendthrifts through the spendthrift trust.
Terminology[ edit ] Chart of a trust Appointer: This is the person who can appoint a new trustee or remove an existing one. This person is usually mentioned in the trust deed. In trust law, "appointment" often has its everyday meaning. It is common to talk of "the appointment of a trustee", for example. However, "appointment" also has a technical trust law meaning, either: The trustee's right to do this, where it exists, is called a power of appointment.
Sometimes, a power of appointment is given to someone other than the trustee, such as the settlor, the protector, or a beneficiary. This is the legal term used to imply that an entity is acting as a trustee.
A beneficiary is anyone who receives benefits from any assets the trust owns. This term refers to the fact that the trustee is acting on its own behalf. A protector may be appointed in an express, inter vivos trust, as a person who has some control over the trustee—usually including a power to dismiss the trustee and appoint another.
The legal status of a protector is the subject of some debate. No-one doubts that a trustee has fiduciary responsibilities. If a protector also has fiduciary responsibilities, then the courts—if asked by beneficiaries—could order him or her to act in the way the court decrees.
However, a protector is unnecessary to the nature of a trust—many trusts can and do operate without one. Also, protectors are comparatively new, while the nature of trusts has been established over hundreds of years.
It is therefore thought by some that protectors have fiduciary duties, and by others that they do not. The case law has not yet established this point. This is the person or persons who creates the trust. Grantor s is a common synonym. Terms of the Trust means the settlor's wishes expressed in the Trust Instrument. A trust deed is a legal document that defines the trust such as the trustee, beneficiaries, settlor and appointer, and the terms and conditions of the agreement.
A trust distribution is any income or asset that is given out to the beneficiaries of the trust. A person either an individual, a corporation or more than one of either who administers a trust. A trustee is considered a fiduciary and owes the highest duty under the law to protect trust assets from unreasonable loss for the trust's beneficiaries.
Creation[ edit ] Trusts may be created by the expressed intentions of the settlor express trusts  or they may be created by operation of law known as implied trusts. An implied trust is one created by a court of equity because of acts or situations of the parties. Implied trusts are divided into two categories: A resulting trust is implied by the law to work out the presumed intentions of the parties, but it does not take into consideration their expressed intent.
A constructive trust  is a trust implied by law to work out justice between the parties, regardless of their intentions. Typically a trust can be created in the following four ways: In some jurisdictions certain types of assets may not be the subject of a trust without a written document. Three certainties The formalities required of a trust depends on the type of trust in question.
Generally, a private express trust requires three elements to be certain, which together are known as the "three certainties". These elements were determined in Knight v Knight to be intention, subject matter and objects. The certainties of subject matter and objects allow the court to administer trust when the trustees fail to do so. These words are construed objectively in their "reasonable meaning",  within the context of the entire instrument.
A mere expression of hope that a trust be created does not constitute an intention to create a trust. Conversely, the existence of terms of art or the word "trust" does not indicate whether an instrument is an express trust. The property subject to the trust must be clearly identified Palmer v Simmonds. One may not, for example state, settle "the majority of my estate", as the precise extent cannot be ascertained.
Trust property may be any form of specific property, be it real or personaltangible or intangible. It is often, for example, real estate, shares or cash. The beneficiaries of the trust must be clearly identified,  or at least be ascertainable Re Hain's Settlement. In the case of discretionary trusts, where the trustees have power to decide who the beneficiaries will be, the settlor must have described a clear class of beneficiaries McPhail v Doulton.
Beneficiaries may include people not born at the date of the trust for example, "my future grandchildren". Alternatively, the object of a trust could be a charitable purpose rather than specific beneficiaries. Trustees[ edit ] A trust may have multiple trustees, and these trustees are the legal owners of the trust's property, but have a fiduciary duty to beneficiaries and various duties, such as a duty of care and a duty to inform.
The trustee may be either a person or a legal entity such as a companybut typically the trust itself is not an entity and any lawsuit must be against the trustees. A trustee has many rights and responsibilities which vary based on the jurisdiction and trust instrument. If a trust lacks a trustee, a court may appoint a trustee. The trustees administer the affairs attendant to the trust.
Political Trust and Sophistication: Taking Measurement Seriously
The trust's affairs may include prudently investing the assets of the trust, accounting for and reporting periodically to the beneficiaries, filing required tax returns and other duties. In some cases dependent upon the trust instrument, the trustees must make discretionary decisions as to whether beneficiaries should receive trust assets for their benefit.
A trustee may be held personally liable for problems, although fiduciary liability insurance similar to directors and officers liability insurance can be purchased. For example, a trustee could be liable if assets are not properly invested.
In addition, a trustee may be liable to its beneficiaries even where the trust has made a profit but consent has not been given.How to Deal with Relationships? - Sadhguru
Either immediately or eventually, the beneficiaries will receive income from the trust property, or they will receive the property itself. The extent of a beneficiary's interest depends on the wording of the trust document. One beneficiary may be entitled to income for example, interest from a bank accountwhereas another may be entitled to the entirety of the trust property when he attains the age of twenty-five years.
The settlor has much discretion when creating the trust, subject to some limitations imposed by law. The use of trusts as a means to inherit substantial wealth may be associated with some negative connotations; some beneficiaries who are able to live comfortably from trust proceeds without having to work a job may be jokingly referred to as "trust fund babies" regardless of age or "trustafarians".
Trusts may be created purely for privacy. The terms of a will are public in certain jurisdictions, while the terms of a trust are not. Trusts may be used to protect beneficiaries for example, one's children against their own inability to handle money. These are especially attractive for spendthrifts. Courts may generally recognize spendthrift clauses against trust beneficiaries and their creditors, but not against creditors of a settlor. Trusts frequently appear in wills indeed, technically, the administration of every deceased's estate is a form of trust.
Conventional wills typically leave assets to the deceased's spouse if anyand then to the children equally. If the children are under 18, or under some other age mentioned in the will 21 and 25 are commona trust must come into existence until the 'contingency age' is reached. The executor of the will is usually the trustee, and the children are the beneficiaries. The trustee will have powers to assist the beneficiaries during their minority.
Secondly, the current study revisits the relationship between political sophistication and political trust by employing statistically robust analyses. Our findings illustrate that, when compared to their less sophisticated counterparts, highly sophisticated citizens do display higher levels of trust in three key components of democratic regimes, namely; parliament, politicians, and political parties. However, in sharp contrast with earlier research these differences are found to be minor.
A widespread belief in legitimacy is commonly regarded as a necessary condition for the survival of political regimes. Therefore, measuring the level and development of political trust may provide us with important information about the stability of political systems Easton Trust in the political regime of a country constitutes a reservoir of good will for when the day-to-day performance of the regime fails to meet expectations. Given these crucial implications, political trust is often considered as an essential component of the civic culture that is necessary for stability of democratic systems Almond and Verba Therefore, the seemingly decreasing levels of political trust in Western democracies over the last couple of decades Dalton; Klingemann have stimulated a growing body of research on the causes and consequences of political trust.
The presumed decline of political trust and, by implication, the presumed decline of the legitimacy of political systems is often attributed to long-term processes of modernization and globalization. At the level of the individual citizen, modernization implies among other things a rise in the level of education Klingemann and Fuchs Modernization theory states that the increased level of education, in combination with increasing political interest and a decreasing respect for traditional authorities and institutions leads to a growing dissatisfaction of higher-educated citizens with the working of the political system Aarts et al.
This growing dissatisfaction presumably translates into a decrease in the trust in political institutions, as these institutions apparently fail to do what modern citizens expect from them.
The effects of economic globalization, on the other hand, work in a different direction. Economic globalization primarily impacts on those citizens who in the process become less competitive on the labor market.
In Western countries, these citizens are primarily workers in those production segments of the economy which can relatively easily be moved to other countries or other parts of the world where the costs of production can be optimized see for example Kriesi et al.
For these workers, replacement jobs are hard to find since their level of education is relatively low. Higher educated persons, in contrast, are much better suited for jobs in economic sectors that will survive the first waves of globalization, e. In short, economic globalization will likely have negative consequences for the lower strata of the labor market, which tend to be the lower-educated citizens. It is to be expected that these negative experiences will in turn lead to a decrease of political trust among this group.
Modernization and globalization are thus expected to have diverging effects on the development of political trust of different groups in society.
The modernization process is assumed to lead to a decrease of political trust especially among the higher-educated citizens. The globalization process, on the other hand, is thought to lead to a decrease of trust among the lower-educated citizens. While the Netherlands has long been considered as an exceptional case with rising rather than declining levels of political trust, there has been a significant drop in political trust levels of Dutch citizens in the first half of the s Bovens and Wille ; Hendriks The sudden decline in the political trust levels stimulated a growing body of literature on political trust in the Netherlands Bovens and Wille ; Hendriks ; van der Brug and van Praag ; van der Meer Recent research into the case of the Netherlands has stressed the central role of education in understanding and explaining attitudes towards politics, including political trust.
Looking at political trust specifically, diploma democracy suggests that political sophistication acquired through education is the single strongest explanatory variable in understanding varying levels of political trust. According to this view, on top of the important consequences of economic globalization, the political arena itself has increasingly become a domain where only highly qualified, politically sophisticated citizens can exert influence and hence the less educated citizens become more and more alienated from politics Bovens and Wille Supporters of the diploma democracy thesis argue that this feeling of exclusion from politics is causing cynicism and distrust among the less educated and less politically sophisticated citizens.
These feelings of political exclusion add to the threat of economic exclusion as a result of economic globalization Bovens and Willepp. The empirical studies investigating the differences in political trust levels between the higher and lower educated citizens suggest that there is a gap between the two. The extent of this gap is not fully clear. Bovens and Willepp. Other studies point to rather weak relationships, especially when other explanatory factors are taken into account e.
Listhaug and Wiberg In cross-national comparisons political trust is consistently highest in countries that are not considered liberal democracies. Within the set of liberal democracies, the Nordic countries tend to have the highest trust rates, while the former communist countries in Central and Eastern Europe have the lowest.
Despite evidence that political trust declines in many longstanding democracies in the s and s, the last few decades are characterized by trendless fluctuations in most countries. While scholars have made great headway in understanding the sources of political trust—most notably corruption, procedural fairness, economic performance, inclusive institutions, and socialization—this article argues that knowledge about its consequences has remained remarkably scarce.
These authors warned about the consequences from the rise of an anomic democracy: Yet with all this dissatisfaction, no significant support has yet developed for any alternative image of how to organize the politics of a highly industrialized society. Crozier, Huntington, and Watanuki were not the only ones in the mids suggesting an erosion of political trust.
Nor were they the only ones relating trends in political trust to a broader systemic crisis of representative democracy in the Western world. The narrative of a political trust crisis that leads into or signals a crisis of representative democracy is rooted in decades of scholarly debate see Thomassen, Understood to be integral to the functioning of democracy, low and declining trust presumably has direct and severe consequences for the quality and stability of representative democracy, its institutions, and its actors.
Daltonp. Indeed, the history of democracies seems to be punctuated by political analysts raising such concerns, even before there were public opinion surveys to provide supporting evidence. Much research on political trust has been implicitly or explicitly framed to touch on the narrative of the political trust crisis.
Yet this narrative has also been challenged. Scholars have debated the relevance of political trust on a more conceptual level, argued about the correct interpretation of longitudinal trends and cross-national differences, discussed the societal and political roots of political trust, and studied its consequences.
These debates and discussions have been valuable, bringing focus to the scholarly understanding of political trust and pushing the boundaries of our knowledge. Three Variants of the Overarching Narrative Analytically, we can distinguish between three variants of the overarching narrative that relates political trust crises to more general crises in democracy.
The first finds its origin in the s, arguing that the very survival of democratic regimes or communities is at stake if political trust is low. The expectation was formulated in times when political scientists were mainly concerned with the stability of democratic regimes.
Although formulated less explicitly nowadays, allusions to the risk that representative democracy may not survive a trust crisis continue to be made in scholarly and public debates. However, since the s scholars have increasingly realized that high levels of support for democratic principles and even the democratic performance of regime itself have gone hand in hand with low levels of trust in the institutions and actors that function in that regime.
The crisis of democracy predicted in the s had not occurred. Major institutional reconfigurations happened quite often. Consider, for instance, the French transition from the Fourth to the Fifth republic, the implosion of the Italian party system in the s, the shift from majoritarian to proportional institutions in New Zealand, and the realignment of the Dutch party system after Representative democracy is inherently responsive to challenges such as political trust crises: Four Fields of Interest Much research on political trust touches on its supposed relevance to the stability of representative democracy.
The overarching narrative can be broken down analytically in four topics of debate. The first deals with the conceptual nature of political trust.
The second topic is descriptive, focusing on the longitudinal trends and cross-national differences in political trust empirically. The third topic of debate has revolved around the individual and contextual causes of political trust. The fourth topic is about the consequences of political trust at the micro, meso, and macro levels. Yet, surprisingly, this is the one that is the least developed empirically. The remainder of this contribution deals with each of these four topics—conceptual, descriptive, determinants, and consequences—in relation to the overarching debate.
Conceptualizing Political Trust Political Trust and Political Support While I primarily use the term political trust in this article, many equivalents are used throughout the literature, including trust in government and confidence in political institutions.
While we may distinguish conceptually between trust and confidence, empirically the two are hardly separable.
The relevance of political trust for representative democracy lies in the three ways in which trust has been distinguished from the more general concept of political support. Whereas specific support is content-dependent and relies on evaluations of output, diffuse support is more affective and does not depend on short-term satisfaction with specific outputs. According to Eastonp. On the one hand, the definition of political trust by its objects excludes more abstract objects such as the community and democratic principles that are conventionally less contested and volatile.
On the other hand, it also excludes the individual political actors that populate the institutions and the individual policies that are the output: Although conceptually distinct, empirically scholars find that political trust is related to support for principles as well as support for political actors. The third unique feature of political trust compared to the more general label of political support is the relational and situational aspect that is inherent in trust.
Whereas support could also be expressed when one is perfectly certain about the outcomes or when the outcomes do not matter at all to the subject, trust is primarily relevant in times of uncertainty about the outcomes. The subject of political trust the truster is in one way or another vulnerable to the actions of the object the trustee.
The larger the risk, the more difficult it is to trust, yet the more relevant trust relationships are to prevent the constant, costly monitoring of government.
Political Trust and Sophistication: Taking Measurement Seriously
Trust is thus a relational concept that links the subject who trusts to the object that is trusted. Indeed, we do not commonly argue that person A trusts without reference to a trust object. In daily use, trust is also conditional: Political Trust as a Relation In this rational and relational approach, political trust has an evaluative character. What is being evaluated is a question that has driven scholars in the field for decades.
In the evaluative approach, we can distinguish between four elements of trust: Whether and how these elements can be applied to trust in political institutions and democratic procedures has been a matter of debate.
A conceptual map of political trust. Trust, Skepticism, and Democracy Whereas trust reflects the positive evaluation by the subjects of specific objects in a situation of uncertainty or vulnerability, the absence of trust should not simply be equated to the presence of distrust. A crucial middle category is made up by the category of skepticism, the attitude to suspend judgment awaiting additional information. Political cynicism, by contrast, is the attitude that assumes the worst of the nature of political objects actors, institutions as reflected in their perceived incompetence and selfishness.
Although political trust is often thought to be a desirable or even necessary democratic quality, vibrant democracies do not simply require political trust regardless of object and circumstances. While political trust would be desirable from an administrative point of view in democracies and non-democracies alike as it implies a voluntary compliance to the law and stimulates the smooth top-down implementation of policiesfrom a liberal democratic perspective one would call for vigilant skepticism to keep citizens engaged and to monitor the actions of government.
Surely it is hard to imagine representative democracy if democratic principles and values are not deeply embedded in society. However, support for these democratic principles should not devolve into blind trust in the performance or institutions, let alone unconditional support for the officeholders.
Lack of political trust need not be detrimental to representative democracy. Scholars have used labels such as skeptical, critical, vigilant, and assertive to describe non-trusting citizens who nevertheless strengthen democracy, if only because their lack of trust stimulates engagement: In daily use, trust has remained a rather vague concept, which affects the setup and outcomes of empirical studies. Most empirical knowledge on political trust is derived from survey research.
- Political Trust and the “Crisis of Democracy”
Typically, surveys tend to pose questions about the positive attitude political trust. This is either compared to the absence of trust i. The former conflates skepticism and distrust, whereas the latter tends to overlook the potential middle ground of skepticism.
Similarly, despite conceptual distinctions between various objects of political trust, empirically the reported trust in various political institutions—parliament and government, police and the justice system—is strongly interrelated. While the levels of trust may differ at the aggregate level, many citizens do not make a strong distinction between various political institutions.
Hence, political trust may not be as object-specific as the more evaluative approaches in the literature heuristically assume. Indeed, in recent years various scholars have used advanced statistical methods to prove that trust in a wide range of political and even civic institutions can empirically be reduced to a single underlying factor, without losing much information in the process.
Political Trust Across the Globe Figure 2 provides an overview of political trust here defined as trust in government and trust in parliament across the globe, based on the World Values Survey WVS of — What stands out first and foremost is that political trust is highest in illiberal regimes such as Uzbekistan, China, Azerbaijan, Qatar, Singapore, and Malaysia.
These high scores are a consistent finding; nevertheless, it is unclear what they mean. They may be caused by methodological fallacies, such as an invalid measurement instrument e. Political trust is relatively low in established democracies: In Figure 2Sweden and Germany are exceptions. As Figure 3 suggests, the high trust rate in Sweden is quite typical for the other Nordic countries Denmark, Norway, Finlandjust as the low trust rates in Poland, Romania, and Slovenia are rather typical for the post-communist countries in Central and Eastern Europe.
It is important to note, however, that the measurement of political trust rates depends strongly on the specific formulation of the question and the number and type of categories offered. Longitudinal trends and cross-national rankings are therefore more important sources of information than the absolute percentage in a single country.
Political trust across the globe, WVS, —