business (noun, busi-ness, \ ˈbɪznəs \) trust (noun, trust, \ trʌst \)
Definition: is a type of legal organization created to operate similarly to a corporation but where the trustees are controlling the assets while holding the interests of the beneficiaries in mind. Such enterprises are ordinarily established to perform transactions of real estate properties or securities while defending these assets from creditors and equally dividing all the revenue and losses between the beneficiaries. Depending on the judicial system in each State, a business trust can fall either under general or trusts laws.
In a Sentence:
- To be certain that your assets are protected from creditors, you have to study all the details about how a business trust operates.
- According to Flemington, the business trust was supposed to choose the conditions, under which the negotiations could move forward.
- It’s recommended to constantly cooperate with your business trust to be sure it’ll be able to bail you out should such a need arise.
Synonyms and related words: Massachusetts trust, common-law trust, beneficiary, executed trust
