The Rise of Business Trusts in Sustainable Neo-Innovative Economies

88 University of Cincinnati Law Review 735 (2019)

University of Florida Levin College of Law Research Paper No. 20-13

33 Pages Posted: 4 May 2020 Last revised: 14 May 2020

See all articles by Lee-ford Tritt

Lee-ford Tritt

University of Florida Levin College of Law

Ryan Scott Teschner

University of Texas at Dallas, Naveen Jindal School of Management, Student

Date Written: 2019

Abstract

Business trusts have been commonly used in the United States as an organizational form for over 100 years. Historically, entrepreneurs used business trusts to escape regulatory and tax requirements imposed on corporations. Today, in the United States, business trusts are narrowly used in specialized niches, such as structured finance transactions and the setting up of mutual funds, while corporations have ascended as the dominant organizational form for operating a business. By contrast, business trusts have enjoyed a resurgence in neo-innovative economies such as Singapore. An understanding of the growing utilization of business trusts as an organizational form abroad could prove enlightening for future American economic ventures, especially foreign investment. For instance, why are business trusts gaining popularity in Singapore and other Asian markets? And, why have business trusts generally been overlooked in the United States outside of mutual funds and employee pension funds? This Article seeks to address these questions by discussing and comparing business trusts in the United States with those being used in Singapore. Beyond providing mere descriptive accounts of business trusts in these two countries, this Article will consider the transportability of key concepts of Singapore business trusts to American business trust law and usage. In addition, this Article will be mindful that American institutional and cultural business contexts (for example, historical use and the emerging sustainability movement), as well as American trust jurisprudence, may limit the applicability of these key concepts in the United States.

Keywords: trusts, business trusts, REITs, IPOs, business organizations, organizations, organizational structures, mutual funds, employee pension funds

Suggested Citation

Tritt, Lee-ford and Teschner, Ryan Scott, The Rise of Business Trusts in Sustainable Neo-Innovative Economies (2019). 88 University of Cincinnati Law Review 735 (2019), University of Florida Levin College of Law Research Paper No. 20-13, Available at SSRN: https://ssrn.com/abstract=3579052

Lee-ford Tritt (Contact Author)

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

Ryan Scott Teschner

University of Texas at Dallas, Naveen Jindal School of Management, Student ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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