650. Fewer Accounts Needed by Trustees 651. Must Account Separately for Each Trust LXXIII KEEPING THE TRUSTEE'S ACCOUNTS § 655. No Need for Complicated System 661. Receipts and Disbursements of Income 662. Payments of Income to Trustee by Executor 665. Interest on Bank Accounts 666. Trust Fund Passing by Will CHAPTER XL THE NATURE OF TRUSTS § 356. Trusts-Definitions A trust is a legal arrangement by which a person known as the "trustee" holds property for the benefit and advantage of another, known as the "beneficiary" or, in legal phrase, as the cestui que trust. The parties to a trust are: (1) the creator, (2) the trustee, and (3) the beneficiary or cestui que trust. The property or subject matter may be real estate or money, goods, chattels, or choses in action. Anything that can be held legally may be the subject of a trust. Wherever the legal estate or interest is in one person and the equitable interest is in another, a trust exists. It is called a "trust" because it is founded on trust and confidence in the trustee, that he will carry out the wishes of the creator of the trust as expressed in the will or the deed of trust. A trust is not a contract and therefore no suit can be brought in a court of law for what is called a "breach of trust," but in a court of equity a trust can be enforced, and hence all litigation concerning trusts is conducted in the courts of equity or chancery. A beneficiary or cestui que trust holds what is termed in law an "equitable title." To explain this requires that some definition be given of the legal and technical distinction between common law and equitable titles. The vital distinction between trust estates and all other ordinary estates is that in every trust there are two interests. Both these interests are spoken of as estates. That of the |