Final answer:
Formal trust arrangements are necessary for private estate planning, controlling business operations without violating anti-monopoly laws, and developing trust within partnerships, impacting both personal and professional relationships.
Step-by-step explanation:
Situations that could require a formal trust arrangement include estate planning to ensure the private transfer of assets to heirs outside of probate court. Trusts serve as a 'family bank' and help in the management and distribution of one's estate according to their wishes. This role is typically taken on by an executor, often an attorney, who alongside the trustees, usually heirs, administers the assets within the trust as per the deceased's instructions, which often become irrevocable upon death.
Moreover, trusts have a broader application in the business sphere where they can be used to control monopolies by holding stock of multiple companies. This control can influence corporate decision-making, potentially circumventing anti-monopoly laws. In the non-profit sector, trusts can play a pivotal role by developing trust within partnerships through education and collaborative strategies targeted at staff and survivors. Trust arrangements also impact personal and professional relationships since trust between parties, such as between a supervisor and their subordinate, can lead to opportunities or hinder professional advancement.