active trust
Học thuậtThân thiện
Definition
- Noun:
- A trust in which the trustee must perform certain duties: A legal arrangement where the person or entity managing the assets (the trustee) has an affirmative obligation to take specific actions, rather than merely holding the assets passively.
Usage Examples
- Noun:
- The will established an active trust, requiring the trustee to manage the investments and distribute the income annually.
- Unlike a bare trust, an active trust involves significant managerial responsibilities for the trustee.
Advanced Usage
- Legal Context: The term is primarily used in law, specifically in trust and estate planning. The "active" nature refers to the trustee's duty to exercise discretion and carry out specific tasks outlined in the trust agreement.
- The court determined it was an active trust because the document instructed the trustee to sell certain properties and reinvest the proceeds.
Variants and Related Words
- Trust (n): The general legal arrangement where one party holds property for the benefit of another.
- Trustee (n): The person or institution that holds and manages the assets in a trust.
- Beneficiary (n): The person or entity who benefits from the trust.
- Passive Trust (or Bare Trust) (n): A trust where the trustee has no active duties beyond holding the legal title to the assets.
Synonyms
- Special Trust: A term sometimes used interchangeably to denote a trust where the trustee has specific, active duties.
- Express Active Trust: Emphasizes that the duties are explicitly stated in the trust instrument.
Antonyms
- Passive Trust: A trust where the trustee has no management duties.
- Bare Trust: A trust where the trustee's role is merely to hold legal title, while the beneficiary has immediate and absolute right to both the capital and income.
Noun
- a trust in which the trustee must perform certain duties