Bankruptcy is the state of an individual or entity unable to pay off their debts. A court-ordered bankruptcy order leads to the liquidation of the bankrupt's assets to repay creditors.
Beneficial interest refers to the right to benefit from assets held in a trust, distinguished from the legal ownership held by the trustee. It pertains to the income or principal of the trust fund, directly influencing the beneficiary.
A business trust is an unincorporated business organization created by a trust instrument. It is an alternative to a corporation or partnership structures, allowing the trustee to manage the trust's assets for beneficiaries.
A Declaration of Trust is a written statement by a trustee acknowledging that the property is held for the benefit of another party.
A legal document transferring the title of property from its owner to a trustee, who holds it as security for a performance of obligations by the owner or a third party.
A discretionary trust is a type of trust agreement that grants the trustee the authority to administer the trust's assets and income based on their own judgment, as long as they act with prudence and common sense.
A fiduciary is a person, company, or association holding assets in trust for a beneficiary, with the responsibility of investing the money wisely for the beneficiary's benefit.
A land trust is a legal arrangement in which a trustee or trustor holds the title or ownership of real property on behalf of a beneficiary, providing an efficient way to manage, develop, and preserve property interests.
RES refers to the property underlying a trust, which is the subject matter that the trustee holds in fiduciary capacity for the beneficiaries.
A Share Incentive Plan (SIP) is a tax-advantaged share scheme introduced by the British government to encourage employee ownership in participating companies. Under such a plan, a trustee acquires and holds shares for the benefit of employees, providing significant tax advantages under predetermined conditions.
A Trust Agreement, also known as a Trust Instrument, is a legal document that sets up a trust and outlines the rules that must be followed by the trustee and the beneficiaries.
A trust company is an organization, often associated with a commercial bank, that acts as a trustee, fiduciary, or agent for individuals or businesses in managing various trust-related services.
A trust instrument is a legal document that creates a trust and stipulates its terms, trustee, beneficiaries, income, and corpus disposition.
A trustee is an individual or company holding legal title to property for the benefit of one or more beneficiaries, ensuring the property is managed in accordance with the terms of the trust.
A trustor, also known as a settlor, is an individual or entity that creates a trust by transferring assets to a trustee for the benefit of specified beneficiaries.
