Cestui que trust, derived from French and meaning “the one who trusts,” is a legal term referring to the beneficiary of a trust. In trust law, the cestui que trust is the person for whose benefit property or assets are held in trust by a trustee. While the trustee holds legal title to the trust property, they are obligated to manage and distribute it in accordance with the terms of the trust for the benefit of the cestui que trust. The cestui que trust typically has equitable title to the trust property, meaning they have the right to receive the benefits and income generated by the trust assets. The duties and responsibilities of trustees towards cestui que trust are governed by fiduciary principles, requiring trustees to act in the best interests of the beneficiary and to manage the trust assets prudently.
n. (properly pronounced ses-tee kay, but lawyers popularly pronounce it setty kay) from old French. 1) an old-fashioned expression for the beneficiary of a trust. 2) “the one who trusts” or the person who will benefit from the trust and will receive payments or a future distribution from the trust’s assets.
A cestui que trust is a legal term that refers to a beneficiary of a trust. The cestui que trust has the right to receive the benefits and assets held in the trust, while the trustee is responsible for managing and distributing those assets according to the terms of the trust agreement. The cestui que trust has a legal interest in the trust property and can enforce their rights in court if necessary.
“Cestui que trust” (pronounced “sest-wee kay trust”) is a legal term derived from French and Latin that refers to a beneficiary of a trust. The term is commonly used in the context of trust law to describe the person who benefits from assets held in a trust, while another party, known as the trustee, manages or administers those assets for the benefit of the beneficiary.
The “cestui que trust” is the individual for whom the trust property is intended to benefit. This person has equitable rights to the assets held in the trust, including any income or proceeds generated by the trust property. The trustee, who holds legal title to the trust property, is responsible for managing the assets according to the terms of the trust and for fulfilling the fiduciary duties owed to the cestui que trust.
In legal documents and discussions involving trusts, you may encounter phrases like “cestui que trust” to refer to the beneficiary or beneficiaries of the trust arrangement. Understanding the role of trust is fundamental to comprehending the dynamics and obligations within a trust relationship.
A Cestui Que Trust is a legal term that refers to the beneficiary of a trust.
The purpose of a Cestui Que Trust is to ensure that the beneficiary receives the benefits and assets held in the trust.
A Cestui Que Trust is typically established through a legal document, such as a trust agreement, that outlines the terms and conditions of the trust.
Any individual or entity can be named as the beneficiary of a Cestui Que Trust, as long as it is legally permissible.
The rights of a beneficiary in a Cestui Que Trust include the right to receive the assets and benefits held in the trust, as well as the right to enforce the terms of the trust.
In some cases, a beneficiary can be removed from a Cestui Que Trust if certain conditions are met, such as a change in circumstances or a breach of the trust terms.
Yes, a beneficiary of a Cestui Que Trust may have the legal right to challenge the terms of the trust if they believe it is not being administered properly or if there are concerns about the trust’s validity.
The tax implications for the beneficiary of a Cestui Que Trust will depend on the specific terms of the trust and applicable tax laws. It is advisable to consult with a tax professional for guidance.
A beneficiary of a Cestui Que Trust can protect their rights by staying informed about the terms of the trust, communicating with the trustee, and seeking legal advice if they have concerns about the administration of the trust.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 30th April 2024.
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