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To address the legal uncertainty surrounding the common-law business trust, at least thirty states have enacted legislation that validates the trust as a permissible form of business organization. But the entity that arises under the more recent of these statutes is better understood as a “statutory business trust,” “statutory trust entity,” or “statutory trust” than as a common-law business trust with statutory validation.

The primary stimulus for the drafting of the Uniform Statutory Trust Entity Act has been the increasing popularity of statutory trust entities. Increasing use of the statutory trust as a mode of business organization has led to a recognition that in many states the status of such trusts is unclear and that much of the existing legislation is out-of-date or incomplete.

In drafting the substantive provisions of the Uniform Statutory Trust Entity Act, the drafting committee was influenced primarily by the Delaware Statutory Trust Act. In choosing to take the Delaware Statutory Trust Act as itsstarting point, the drafting committee was strongly influenced by state-level data on statutory trust usage over the last few years. These data, first collected by the Reporter and then later updated by the International Association of Commercial Administrators, indicate that the Delaware Statutory Trust Act dominates the field, both in new statutory trust formations and in the aggregate number of statutory trusts.

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The Uniform Statutory Trust Entity Act: A Review

The Uniform Statutory Trust Entity Act: A Review

Wtritten by Experts Thomas E. Rutledge and Ellisa O. Habbart, This Article both reviews the workings of this new uniform act and identifies issues and deficiencies therein.

Given that we believe the statutory trust should be part of any choice-of-entity analysis, our objectives in this Article are twofold.

Our first aim is to help readers garner an understanding of the Act by examining the language employed and placing both procedural and policy determinations embodied in USTA in the context of comparable provisions in other business organization acts.

Our second objective, and that which we hope will be most useful to state drafting committees that in future years will be considering the adoption of USTA, is to address certain policy decisions made in the drafting of USTA that have led to determinations that, in our assessment, deserve further consideration.

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a 3-minute read on the differences between the Common Law Trust & the Statutory Trust

For A 3-Minute Read On The Differences Between The Common Law Trust Vs. Statutory Trust, written by the upcounsel site, click here.

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Delaware Statutory Trusts

Click Here for The Delaware Counsel Group, LLP's excellent 14-page background article entitled simply "Delaware Statutory Trusts."

Delaware Statutory Trust - WIKIPEDIA

Click Here for Wikipedia's background article "Delaware Statutory Trust" under their Corporate law series.

Delaware Statutory Trust: Everything You Need to Know

Click Here for the Upcounsel's 7-minute read: "Delaware Statutory Trust: Everything You Need to Know" which covers many important aspects of the DST such as:

Passive Investment Benefits
Investing in a DST
How DSTs Work
DST vs. TIC Ownership Benefits
Risks and
Advantages of DSTs and DLLCs - Simplicity of Formation and Maintenance With Minimal Cost

The 2020 Amendments to the Delaware Statutory Trust Act

Click Here for a review of the 2020 Amendments to the Delaware Statutory Trust Act by Richards, Layton & Finger, PA, of Wilmington, DE.

From July 19, 2020, topics covered inlcude:

Series Ability to Contract, Title to Trust Assets and Party to Contracts, Division of a Statutory Trust, Electronic Signatures, and Judicial Cancelation of a Certificate of Trust.

Read More about the 2020 Amendments HERE