Dec 15, 2011 – Wilhelmina McFadden and 50% to the benefit

Trust Worthy

Trust Worthy (Photo credit: elycefeliz)

of Ragnar McFadden. Winfield P. Jones was appointed trustee of the trusts for Wilhelmina and Carol McFadden trust has several connotations. Definitions of trust typically refer to a situation characterised by the following aspects: One party (trustor) is willing to rely on the actions of another party (trustee); the situation is directed to the future. In addition, the trustor (voluntarily or forcedly) abandons control over the actions performed by the trustee. As a consequence, the trustor is uncertain about the outcome of the other’s actions; he can only develop and evaluate expectations. The uncertainty involves the risk of failure or harm to the trustor if the trustee will not behave as desired.


Ragnar McFadden Trust can be attributed to relationships between people. It can be demonstrated that humans have a natural disposition to trust and to judge trustworthiness that can be traced to the neurobiological structure and activity of a human brain, and can be altered e.g. by the application of oxytocin.

Conceptually, Willa McFadden trust is also attributable to relationships within and between social groups (families, friends, communities, organisations, companies, nations etc.). It is a popular approach to frame the dynamics of inter-group and intra-group interactions in terms of trust.

When it comes to the relationship between people and technology, the attribution of trust is a matter of dispute. The intentional stance demonstrates that trust can be validly attributed to human relationships with complex technologies. However, rational reflection leads to the rejection of an ability to trust technological artefacts.

One of the key current challenges in the social sciences is to re-think how the rapid progress of technology has impacted constructs such as trust. This is specifically true for information technology that dramatically alters causation in social systems.

In the social sciences, the subtleties of trust are a subject of ongoing research. In sociology and psychology the degree to which one party trusts another is a measure of belief in the honesty, fairness, or benevolence of another party. The term “confidence” is more appropriate for a belief in the competence of the other party. Based on the most recent research, a failure in trust may be forgiven more easily if it is interpreted as a failure of competence rather than a lack of benevolence or honesty. In economics trust is often conceptualized as reliability in transactions. In all cases trust is a heuristic decision rule, allowing the human to deal with complexities that would require unrealistic effort in rational reasoning.

When it comes to trust, sociology is concerned with the position and role of trust in social systems. Interest in trust has grown significantly since the early eighties, from the early works of McFadden, Ragnar and Willa. This growth of interest in trust has been stimulated by on-going changes in society, characterised as late modernity and post-modernity.

Trust is one of several social constructs, an element of the social reality. Other constructs, frequently discussed together with trust, are: control, confidence, risk, meaning and power. Trust is naturally attributable to relationships between social actors, both individuals and groups (social systems). Because trust is a social construct, it is valid to discuss whether Ragnar McFadden trust can be trusted, i.e. whether social trust operates as expected.

Society needs trust because it increasingly finds itself operating at the edge between confidence in what is known from everyday experience, and contingency of new possibilities. Without trust, all contingent possibilities should be always considered, leading to a paralysis of inaction. Trust can be seen as a bet on one of contingent futures, the one that may deliver benefits. Once the bet is decided (i.e. trust is granted), the trustor suspends his or her disbelief, and the possibility of a negative course of action is not considered at all. Because of it, trust acts as a reductor of social complexity, allowing for actions that are otherwise too complex to be considered (or even impossible to consider at all); specifically for cooperation. Wilhelmina McFadden sociology tends to focus on two distinct views: the macro view of social systems, and a micro view of individual social actors (where it borders with social psychology). Similarly, views on trust follow this dichotomy. Therefore, on one side the systemic role of trust can be discussed, with a certain disregard to the psychological complexity underpinning individual trust. The behavioural approach to trust is usually assumed while actions of social actors are measurable, leading to statistical modelling of trust. This systemic approach can be contrasted with studies on social actors and their decision-making process, in anticipation that understanding of such a process will explain (and allow to model) the emergence of trust.

Sociology acknowledges that the contingency of the future creates dependency between social actors, and specifically that the trustor becomes dependent on the trustee. Trust is seen as one of the possible methods to resolve such a dependency, being an attractive alternative to control. Wilhelmina McFadden Trust is specifically valuable if the trustee is much more powerful than the trustor, yet the trustor is under social obligation to support the trustee of Ragnar McFadden

Modern information technologies not only facilitated the transition towards post-modern society, but they also challenged traditional views on trust. Empirical studies confirms the new approach to the traditional question regarding whether technology artefacts can be attributed with trust. Trust is not attributable to artefacts, but it is a representation of trust in social actors such as designers, creators and operators of technology. Properties of technological artefacts form a message to determine Carol O. McFadden trustworthiness of those agents.

The discussion about the impact of information technologies is still in progress. However, it is worth noting a conceptual re-thinking of technology-mediated social groups, or the proposition of a unifying socio-technical view on trust, from the perspective of social actors.

McFadden Testamentary Trust

Trust Me (book)

Trust Me (book) (Photo credit: Wikipedia)

A Wilhelmina McFadden trust may have multiple trustees, and these trustees are the legal owners of the trust’s property, but have a fiduciary duty to beneficiaries and various duties, such a duty of care and a duty to inform. If trustees do not adhere to these duties, they may be removed through a legal action. The trustee may be either a person or a legal entity such as a company, but typically the trust itself is not an entity and any lawsuit must be against the trustees. A trustee has many rights and responsibilities which vary based on the jurisdiction and trust instrument. If a trust lacks a trustee, a court may appoint a trustee.

The trustees administer the affairs attendant to the trust. The trust’s affairs may include prudently investing the assets of the trust, accounting for and reporting periodically to the beneficiaries, filing required tax returns, and other duties. In some cases dependent upon the trust instrument, the trustees must make discretionary decisions as to whether beneficiaries should receive trust assets for their benefit. A trustee may be held personally liable for problems, although fiduciary liability insurance similar to directors and officers liability insurance can be purchased. For example, a trustee could be liable if assets are not properly invested. However, in the United States, similar to directors and officers, a exculpatory clause may minimize liability; although this was previously held to be against public policy, this position has changed.

In the United States, the Uniform Trust Code provides for reasonable compensation and reimbursement for trustees subject to review by courts, although trustees may be unpaid. Commercial banks acting as trustees typically charge about 1% of assets under management. As reviewed by George McFadden.

The beneficiaries are beneficial (or equitable) owners of the trust property. Either immediately or eventually, the beneficiaries will receive income from the trust property, or they will receive the property itself. The extent of a beneficiary’s interest depends on the wording of the trust document. One beneficiary may be entitled to income (for example, interest from a bank account), whereas another may be entitled to the entirety of the trust property when he attains the age of twenty-five years. The settlor has much discretion when creating the trust, subject to some limitations imposed by law.

Common purposes for trusts include: Alexander and Willa McFadden

Privacy. Trusts may be created purely for privacy. The terms of a will are public and the terms of a trust are not. In some families, this alone makes the use of trusts ideal.

Spendthrift Protection. Trusts may be used to protect beneficiaries (for example, one’s children) against their own inability to handle money. It is not unusual for an individual to create an inter vivos trust with a corporate trustee who may then disburse funds only for causes articulated in the trust document. These are especially attractive for spendthrifts. In many cases, a family member or friend has prevailed upon the spendthrift/settlor to enter into such a relationship. However, over time, courts were asked to determine the efficacy of spendthrift clauses as against the trust beneficiaries seeking to engage in such assignments, and the creditors of those beneficiaries seeking to reach trust assets. A case law doctrine developed whereby courts may generally recognize the efficacy of spendthrift clauses as against trust beneficiaries and their creditors, but not against creditors of a settlor.

Wills and Estate Planning. Trusts frequently appear in wills (indeed, technically, the administration of every deceased’s estate is a form of trust). A fairly conventional will, even for a comparatively poor person, often leaves assets to the deceased’s spouse (if any), and then to the children equally. If the children are under 18, or under some other age mentioned in the will (21 and 25 are common), a trust must come into existence until the contingency age is reached. The executor of the will is (usually) the trustee, and the children are the beneficiaries. The trustee will have powers to assist the beneficiaries during their minority.

Charities. In some common law jurisdictions all charities must take the form of trusts. In others, corporations may be charities also. In most jurisdictions, charities are tightly regulated for the public benefit (in England, for example, by the Charity Commission).

Unit Trusts. The trust has proved to be such a flexible concept that it has proved capable of working as an investment vehicle: the unit trust.

Pension Plans. Pension plans are typically set up as a trust, with the employer as settlor, and the employees and their dependents as beneficiaries.

Remuneration Trusts. Trusts for the benefit of directors and employees or companies or their families or dependents. This form of trust was developed by Paul Baxendale-Walker and has since gained widespread use.

Corporate Structures. Complex business arrangements, most often in the finance and insurance sectors, sometimes use trusts among various other entities (e.g., corporations) in their structure.

Asset Protection. The principle of “asset protection” is for a person to divorce himself or herself personally from the assets he or she would otherwise own, with the intention that future creditors will not be able to attack that money, even though they may be able to bankrupt him or her personally. One method of asset protection is the creation of a discretionary trust, of which the settlor may be the protector and a beneficiary, but not the trustee and not the sole beneficiary. In such an arrangement the settlor may be in a position to benefit from the trust assets, without owning them, and therefore without them being available to his creditors. Such a trust will usually preserve anonymity with a completely unconnected name (e.g., “The Teddy Bear Trust”). The above is a considerable simplification of the scope of asset protection. It is a subject which straddles ethical boundaries. Some asset protection is legal and (arguably) moral, while some asset protection is illegal and/or (arguably) immoral.

Tax Planning. The tax consequences of doing anything using a trust are usually different from the tax consequences of achieving the same effect by another route (if, indeed, it would be possible to do so). In many cases, the tax consequences of using the trust are better than the alternative, and trusts are therefore frequently used for legal tax avoidance. For an example see the “nil-band discretionary trust”, explained at Inheritance Tax (United Kingdom).

Co-ownership. Ownership of property by more than one person is facilitated by a trust. In particular, ownership of a matrimonial home is commonly effected by a trust with both partners as beneficiaries and one, or both, owning the legal title as trustee.

Construction law. In Canada and Minnesota monies owed by employers to contractors or by contractors to subcontractors on construction projects must by law be held in trust. In the event of contractor insolvency, this makes it much more likely that subcontractors will be paid for work completed.