Quiz 6 Vocab - Test 2 Flashcards
Testamentary trust
A trust that is drafted as part of the testator’s will and only becomes effective upon the testator’s death.
Intervivos trust (living trust)
trusts that take effect during the life of the Trustor.
Revocable trust
The trustor has the right to change, amend or terminate the trust at any time during their lifetime
irrevocable trust
A trust which cannot be revoked or recalled
trustor
The individual who establishes the trust
trustee
an individual or legal entity to whom the trustor gives legal titlte to the trust property
fiduciary
a person having a duty to act for the benefit of another
self dealing
trustee recceiving a personal benefit from the trust to the detriment of the beneficiaries
corpus
another term for the property held in trust
res
another term for the property held in trust
equitable title
the right of enjoyment of property
legal title
the legal owner of the property
Cestui que trust
another name for beneficiary. “He who has the right to a beneficial interest” to property where legal title is held by another
Express trust
deliberately created by the trustor
Implied trust
trusts that are created by operation of law. Avoid unjust enrichment.
resulting trust
a trust that arises by implication or by operation of law, ususaly under the circumstance when an express trust fails for any reason
constructive trust
A trust that arises by operation of law primarily because of wrongdoing on the part of the trustee or the person who obtained title to the property
dry trusts
trusts that are funded by only by a very small amount such as $10.00
pourover will
a provision in a will that leaves the residuary estate to a trust or trustee of a living trust
passive trust
a trust where the trustee has no duties–the trust will fail in this case
