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Section 301.7701-4(a), Proced. & Admin. Regs., provides
that, in general, the term "trust", as used in the Internal
Revenue Code, refers to an arrangement created by will or by
inter vivos declaration whereby a trustee takes title to property
for the purpose of protecting or conserving it for beneficial
owners under the ordinary rules applied in chancery or probate
courts. Under the case law, for Federal income tax purposes a
relationship generally is classified as a trust if it is "clothed
with the characteristics of a trust"--a standard that tends to be
more inclusive than a technical trust under State law. United
States v. De Bonchamps, 278 F.2d 127, 133 (9th Cir. 1960); Hart
v. Commissioner, 54 F.2d 848, 850-851 (1st Cir. 1932), revg. in
part 21 B.T.A. 1001 (1930); Weil v. United States, 148 Ct. Cl.
681, 180 F. Supp. 407, 411 (1960). No particular words are
necessary to create an express trust; its existence may be
inferred from the pertinent facts and circumstances. Portland
Cremation Association v. Commissioner, supra at 846; Broadcast
Measurement Bureau, Inc. v. Commissioner, 16 T.C. 988, 997
(1951).
For State law purposes, an express private trust arises
where a trustee acquires legal title to specific property (the
trust property or res) subject to enforceable equitable rights in
a beneficiary. 1 Restatement, Trusts 2d, sec. 2 (1959); Bogert,
The Law of Trusts and Trustees, sec. 1, at 1-2 (2d ed. 1984).
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