The Status and Comparative Study of Trust with Similar Institutions in Iranian and French Law

Abstract

This article conducts a comparative analysis of trust and similar institutions in Iranian and French law. The research methodology includes data collection, a review of previous works on trust and similar institutions in both legal systems, and a comparative analysis of their differences using legal sources, legal opinions, and academic articles. Trust is defined as a legal arrangement in which one or more owners transfer assets, rights, or guarantees to one or more beneficiaries, keeping them separate from their own property and acting in favor of one or more individuals without specifying a particular purpose. The origin of trust dates back to Roman times and was used during the Middle Ages by the Crusaders to manage their assets in their absence. Trust serves three primary functions: asset management for the benefit of the owner, providing security for the owner's sponsor, and transferring assets or rights to a third party. In French law, trust was formally introduced on February 19, 2007. A trust contract must specify the transferred assets or rights, the duration of the transfer (which must not exceed 99 years), the identity of the owners and beneficiaries, and the mission and powers of the trustees. Trust is used as a managerial tool for assets and can be utilized by any natural or legal person, and it can also be used to create guarantees and securities. In Iranian law, the concept of waqf shares similarities with trust. Waqf is defined as the dedication of assets for charitable or religious purposes, where the assets are managed separately from the owner’s other properties. The legal definition of waqf in Iran includes the retention of the principal asset and the allocation of its benefits. The article compares trust in French law with waqf in Iranian law, highlighting their similarities and differences. Both institutions serve the purpose of managing and preserving assets for specific purposes; however, they differ in legal structures, ownership arrangements, and the designation of beneficiaries. Trust in French law provides greater flexibility concerning beneficiaries and purposes, whereas waqf in Iranian law is typically used for religious or charitable purposes. This study also examines other similar institutions in Iranian and French law, such as the third-party beneficiary contract in French law. These institutions serve similar objectives in protecting and managing assets for the benefit of others but have distinct legal frameworks and applications. The research concludes that while trust, waqf, and similar institutions play significant roles in both Iranian and French legal systems, there are substantial differences in their conceptualization, implementation, and legal status. Overall, this comparative study emphasizes the importance of understanding and adapting legal institutions in different legal systems to better serve societal needs and protect individual rights.