statutory trust

Legal Definition of statutory trust

Noun

1. A trust created by the effect of a statute. They are usually temporary in nature and serve the purpose of bridging ownership of property to benefit a certain class of individuals which the statute is designed to protect.
   
   Some examples are the temporary trusts that the law of some states impose on the executor of an estate, the holding and administration of tax or other pay deductions (including vacation pay) by employers, the trust accounts of lawyers and the statutory trust on money paid for a construction project on behalf of any person who might have a construction lien on the property.