Cestui que trust, derived from French and meaning “the one who trusts,” is a legal term referring to the beneficiary of a trust. In trust law, the cestui que trust is the person for whose benefit property or assets are held in trust by a trustee. While the trustee holds legal title to the trust property, they are obligated to manage and distribute it in accordance with the terms of the trust for the benefit of the cestui que trust. The cestui que trust typically has equitable title to the trust property, meaning they have the right to receive the benefits and income generated by the trust assets. The duties and responsibilities of trustees towards cestui que trust are governed by fiduciary principles, requiring trustees to act in the best interests of the beneficiary and to manage the trust assets prudently.
n. (properly pronounced ses-tee kay, but lawyers popularly pronounce it setty kay) from old French. 1) an old-fashioned expression for the beneficiary of a trust. 2) “the one who trusts” or the person who will benefit from the trust and will receive payments or a future distribution from the trust’s assets.
“Cestui que trust” (pronounced “sest-wee kay trust”) is a legal term derived from French and Latin that refers to a beneficiary of a trust. The term is commonly used in the context of trust law to describe the person who benefits from assets held in a trust, while another party, known as the trustee, manages or administers those assets for the benefit of the beneficiary.
The “cestui que trust” is the individual for whom the trust property is intended to benefit. This person has equitable rights to the assets held in the trust, including any income or proceeds generated by the trust property. The trustee, who holds legal title to the trust property, is responsible for managing the assets according to the terms of the trust and for fulfilling the fiduciary duties owed to the cestui que trust.
In legal documents and discussions involving trusts, you may encounter phrases like “cestui que trust” to refer to the beneficiary or beneficiaries of the trust arrangement. Understanding the role of the cestui que trust is fundamental to comprehending the dynamics and obligations within a trust relationship.
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This glossary post was last updated: 15th April, 2024.
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