A trust company can render a variety of service to the individual during his lifetime, and to his estate after his death. If the fiduciary relation is effective while the individual still lives, the company is said to act as trustee under deed or agreement which creates, what is called a voluntary, or personal, trust. A testamentary trust designates the company as trustee under will, and operates only after the death of the donor. A testamentary trust can be nullified by merely writing a new will, which takes precedence over the old one.

A voluntary trust may or may not be revocable in form. If revocable, the creator retains the right at any time to add amendments to the trust, or terminate it altogether. An irrevocable trust is placed beyond the power even of the maker himself, for he cannot change the provisions unless the parties interested as beneficiaries give their consent to an alteration or cancellation. An individual can create a trust of which the beneficiary may be an institution, another third party or person, or even the trustee himself.

A variety of conditions may induce a person to assign his property as a trust. He may be actively engaged in business, and therefore without sufficient time to care for the detailed administration of the property; he may wish to retire and relieve himself of business cares; or he may plan to travel, and during his absence his financial affairs need attention. Under these circumstances the owner of personal property, as stocks and bonds, could simply place them in a vault for safe keeping. But such property requires continual attention, and this service may be performed by a trust company, which guarantees not only the physical safety of the securities, but also assures proper care, such as collection of dividends, preparation of income-tax statements, and gathering of market information. The securities may be sold without requiring the presence or even the signature of the owner, if he transfers the title to a nominee, who is usually a clerk employed by the trust company. The corporation assumes full responsibility for the actions of this nominee, who has no claim to actual ownership. This legal fiction is quite necessary in administering these trusts, for if the securities were indorsed in the name of the company a special authorization of its board of directors would be required for each sale.

A trust company also manages real estate; and as agent has all the duties and rights of the landlord himself. In this capacity the trust company pays taxes and insurance, receives rents, and grants leases.

The beneficiary of a trust may also be a person other than the trustor. The property is not granted as a gift, but is held in trust for the recipient, who may be disqualified from outright ownership for such reasons as inexperience or legal incapacity. Thus provision can be made for the education of a child or the support of wife or other dependent relative who lacks business knowledge. A trust company may be appointed as guardian of a minor, or conservator for an insane person. The law regards such persons as incompetent and a trust company may conduct their affairs until the beneficiary either attains his full age or regains his reason.

The private trusts thus described continue during a definite period of time, or indefinitely until the occur-rence of an event such as the death of the beneficiary. Only public trusts can be created in perpetuity. These charitable trusts are established for the benefit of religious, educational, or scientific institutions. In this manner a trustor provides an endowment for foreign missions, a scholarship in a university, or a fellowship for scientific research.