Statutory trust

A trust created by a statute, usually temporary in nature and serving 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.