passive trust

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Word: Passive Trust

Definition: A passive trust is a type of trust where the trustee (the person managing the trust) does not have to do anything active or take any important actions. Instead, the trustee simply holds the assets (like money or property) and waits for certain conditions to be met or for the beneficiaries (the people who benefit from the trust) to receive what they are entitled to.

Usage Instructions:

• When to Use: You can use the term "passive trust" when discussing legal or financial topics, particularly in the context of estate planning or asset management.
• Who Uses It: This term is often used by lawyers, financial advisors, and people who are setting up trusts for their estate.

Example:

• "In a passive trust, the trustee does not have to make any decisions about how to manage the trust assets, which can simplify the process for everyone involved."

Advanced Usage:

In more complex financial or legal discussions, you might encounter terms like "revocable passive trust" or "irrevocable passive trust," which indicate whether the terms of the trust can be changed after it is created.

Word Variants:

• Trustee: The person who manages the trust.
• Beneficiary: The person or entity that receives benefits from the trust.
• Trust: A legal arrangement where one party holds property for the benefit of another.

Different Meanings:

• In a broader context, "passive" can also refer to someone who does not take initiative in other situations, such as being passive in a conversation or passive in decision-making.

Synonyms:

• Non-active trust
• Dormant trust
• Inactive trust

Related Idioms:

While there are no specific idioms that directly relate to "passive trust," the term "let it be" can express a similar idea of allowing things to happen without interference.

Phrasal Verbs:

There aren’t specific phrasal verbs that directly relate to "passive trust," but you might encounter phrases like "hand over" (to give control to someone else) or "sit back" (to relax and not take action).

Summary:

A passive trust is a straightforward way to manage assets without requiring active involvement from the trustee.

Academic

Noun

1. a trust in which the trustee performs no active duties