- Active Trust
A trust where the trustee is held accountable for additional responsibilities. With an active trust, those additional responsibilities can be in respect to the control or management of the trust, collection of rent, profits, and sale proceeds; in other words the administration of the trust property.
Also referred to as a special trust.
An active trust is in contrast to a passive trust in which the trustee performs no active duties. A trust is a relationship where the trustor gives another person, the trustee, the right to hold title to a property or assets for a beneficiary. It is commonly used if the beneficiary is underage or has a disability that impairs them from maintaining their own finances.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
active trust — UK US noun [C] LAW, FINANCE ► a trust (= arrangement of legal control over someone s money or property) where the trustee (= person who has this control) has other particular duties, such as investing money, or passing on profits, rents, etc.… … Financial and business terms
active trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
active trust — A trust which maintains the legal estate in the trustee, to enable him to perform the duties devolved on him by the donor, and gives the cestui que trust only a right in equity to enforce the per formance of the trust. 54 Am J1st Trusts § 13. A… … Ballentine's law dictionary
active trust — noun a trust in which the trustee must perform certain duties • Ant: ↑passive trust • Hypernyms: ↑trust * * * noun : a trust in which the trustee is charged with the performance of some substantial duties in respect to the control, management,… … Useful english dictionary
trust — n 1 a: a fiduciary relationship in which one party holds legal title to another s property for the benefit of a party who holds equitable title to the property b: an entity resulting from the establishment of such a relationship see also… … Law dictionary
active trustee — ➔ trustee * * * active trust UK US noun [C] LAW, FINANCE ► a trust (= arrangement of legal control over someone s money or property) where the trustee (= person who has this control) has other particular duties, such as investing money, or… … Financial and business terms
active — ac·tive adj 1: characterized or accomplished by action or effort active concealment compare passive 2: engaged or participating in action or activity paying child support but not otherwise an active parent … Law dictionary
trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… … Black's law dictionary
trust — A fiduciary relationship calling for a trustee to hold the title to assets for the benefit of the beneficiary. The person creating the trust, who may or may not also be the beneficiary, is called the grantor. Bloomberg Financial Dictionary See… … Financial and business terms
active — That is in action; that demands action; actually subsisting; the opposite of passive. An active debt is one which draws interest. An active trust is a confidence connected with a duty. An active use is a present legal estate … Black's law dictionary