Trust, trustee, and trust purpose
A trust is an arrangement, recognised at law, by which assets ('trust capital') are held and managed by one party ('trustee') for:
- the benefit of another party or parties (one or more 'beneficiaries'); or
- a specific purpose ('trust purpose').
In either case the main responsibilities of a trustee are to:
- carry out the trust terms;
- act in good faith;
- preserve the trust capital by prudent investment;
- exercise reasonable care in the administration of the trust;
- not benefit from the position of trustee, except as provided at law or under the trust terms;
- not put themselves in a position of conflict or compromise; and
- keep proper accounts and records.
In the case of a trust for a specific purpose, the trust purpose is the object (the intended benefit) specified at the time of establishing the trust.
Any asset or money donated or bequeathed to the University for charitable purposes is 'trust property'. Where a donor makes a gift to the University to provide income to be used for a specified charitable purpose, the University is the 'trustee' of the trust created by that gift.