The distinction between Trust & Agency

The distinction between a trust relationship & an agency relationship lies in the fact that a trustee holds a vested property interest whereas the agent does not; an agent will usually only have possession of the property on behalf of his principal, rather actual title. An agent may (although not always) owe fiduciary obligations towards the principle, & so will have similarities with the trustee in this regards, although fiduciary obligations imposed in a trust relationship will generally will be more rigorous than those applicable to an agency relationship.

The distinction between the trust and agency also well highlighted through their dealings with third parties. an agent who deals with third parties will rarely be liable to those parties because she is acting on behalf the principal,  provide the dealing is within the scope of her powers. a trustee however, will always be liable to third parties for debts incurred in the course of running the trust unless she expressly exempts personal liability. Once the trustee pays out for expense associated with the proper management of the trust, she may be indemnified from the trust fund, or, if that is deficient, the beneficiaries personally.