The state of statutory business trusts in the United States

Abstract

Statutory trusts in the United States, in contrast with most of their common law counterparts, may be used for business purposes. As independent legal personalities, they provide liability protection and other benefits similar to corporations, but with greater freedom of contract in establishing their governance, management, and capital structures. This article discusses the statutory trust framework that is dominated by the Delaware Statutory Trust Act, efforts to adopt similar statutes in other US state jurisdictions, and the defining features and benefits of statutory trusts.