Beneficial interest refers to the right to benefit from assets held in a trust, distinguished from the legal ownership held by the trustee. It pertains to the income or principal of the trust fund, directly influencing the beneficiary.
A breach of trust occurs when a trustee acts contrary to their fiduciary obligations, which can involve misappropriation of trust assets or failure to act in the beneficiaries' best interests.
A Declaration of Trust is a written statement by a trustee acknowledging that the property is held for the benefit of another party.
An equitable owner is the beneficiary of property held in trust, enjoying the benefits of ownership without holding legal title.
Future Interest refers to an individual’s legal right to possess or enjoy property or assets in the future, usually upon the occurrence of a specified event or the fulfillment of certain conditions.
An Inter Vivos Trust, also known as a living trust, is a legal arrangement established during the lifetime of the grantor, typically for the benefit of another person, such as a child. This differs from a Testamentary Trust, which becomes effective upon the death of the trust creator.
An interest-in-possession trust ensures that the income generated by the trust's assets goes to a specific beneficiary or beneficiaries for a fixed period or until the life tenants' death. Subsequently, the capital passes to the remainderman.
An involuntary trust, also known as a constructive trust, is a legal relationship recognized by courts that arises due to the association between parties, even in the absence of a formal written trust document.
A Qualified Terminable Interest Property (Q-TIP) Trust is an estate planning tool that ensures the surviving spouse receives income from the trust's assets while retaining control for the deceased spouse over the distribution of the assets upon the surviving spouse's death.
A settlor is the person in a trust relationship who creates or intentionally causes the trust to come into existence. Other terms used to designate this person include donor, trustor, and grantor.
A trust fund refers to real property or personal property held in trust for the benefit of another person. The trust fund's principal or body is called the corpus.
A trust instrument is a legal document that creates a trust and stipulates its terms, trustee, beneficiaries, income, and corpus disposition.
