Who is referred to as the cestui que trust?

Study for the Ontario Estates Law Exam. Prepare with expertly crafted questions and detailed explanations. Enhance your understanding of estates law and boost your confidence before the exam.

The term "cestui que trust" refers specifically to the individual or entity for whom a trust is established, meaning they are the beneficiary of the trust. This designation emphasizes that this person holds beneficial interest in the assets held within the trust, even though the legal title is held by the trustee.

In the context of estate planning and trusts, understanding the role of the cestui que trust is essential because this party is entitled to the benefits of the trust as stipulated by the trust document. The trust’s purpose is to manage the assets on behalf of the cestui que trust, who essentially will receive the benefits or distributions outlined in the trust arrangement.

This concept is foundational in trust law, as it differentiates between the legal owner of the assets (the trustee) and the person who ultimately benefits from those assets (the cestui que trust). The executor, estate trustee, and creator of the trust document each have different roles that do not pertain to the beneficiary status defined by the term "cestui que trust."

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy