Beneficial Entitlement Flashcards
1
Q
What are fixed trusts?
A
Where the trustees have no discretion in relation to the distribution of the trust property, and they must distribute as directed by the settlor.
2
Q
What is a successive interest trust?
A
A trust involving a series of consecutive interests in the same trust property
3
Q
What is a lifetime interest trust?
A
- A common type of successive interest trust
- A beneficiary receives income during their lifetime, with another beneficiary or beneficiaries becoming entitled to the capital after the income beneficiary’s death
4
Q
What is an income beneficiary?
A
The beneficiary entitled to the income produced by a successive interest trust.
5
Q
What is a capital beneficiary?
A
The beneficiary entitled to the capital held on a successive interest trust.
6
Q
What is an income beneficiary of a life interest trust also known as?
A
The life tenant
7
Q
What is the capital beneficiary of a life interest trust also known as?
A
The remainderman
