Beach Bum Trust Provision Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Beach Bum Trust Provision, written in plain English, along with examples of how it is used.
What is Beach Bum Trust Provision?
(n) Beach Burn Trust Provision is the provisions included in trust deeds which limits the monitory benefits to the beneficiaries to the extend of profits or gains earned by him. This provision is used to benefit the beneficiaries of the trust proportional to their performance
History and Meaning of Beach Bum Trust Provision
Beach Bum Trust Provision is a term often used in law to describe a provision in a trust that limits the monetary benefits to the beneficiaries. The provision ensures that the beneficiaries receive only the profits or gains earned by the trust proportional to their performance. This provision originated in the early days of trusts, where beneficiaries would receive a fixed sum of money regardless of how the trust performed.
Examples of Beach Bum Trust Provision
- A trust is established with a beach bum trust provision that limits the monetary benefits to the beneficiaries to the extent of profits or gains earned by them. If the trust earns $100, and the beneficiaries performed 50% of the work, then they will receive $50.
- A company establishes an employee trust, which includes a beach bum trust provision. The employees will only receive a portion of the profits of the trust based on their productivity, ensuring that highly productive employees receive higher payouts.
- A trust is established to support a charitable cause with a beach bum trust provision. The provision ensures that the charity only receives payouts based on the profits earned, making sure that the charity only receives what it needs and that the trust continues to grow.
Legal Terms Similar to Beach Bum Trust Provision
- Trust - A legal arrangement where a trustee manages assets for the benefit of a beneficiary.
- Trust Deed - A legal document that outlines the terms of the trust and the responsibilities of the trustee and beneficiaries.
- Beneficiary - The party who receives the benefits from a trust.