Cestui Que Trust Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Cestui Que Trust, written in plain English, along with examples of how it is used.

What is Cestui Que Trust?

(n) Cestui Que Trust is the person who is named in a trust to derive future benefit from the trust and receive his share of payments and distributions if any made by that trust. The French word means the beneficiary of a trust

History and Meaning of Cestui Que Trust

Cestui Que Trust is a legal term that originated in medieval England during the reign of King Henry III. It is a French term that translates to "the one who trusts". A trust is created when a person (the settlor) transfers property or assets to another person (the trustee) to manage and distribute for the benefit of a third person (the cestui que trust). This third person is the ultimate beneficiary of the trust.

The term is commonly used in the United States and the United Kingdom in probate and estate planning matters. It is used to identify the individual who is entitled to receive income or assets held in trust. The cestui que trust has a legal right to rely on the trustee to manage and protect the assets in the trust.

Examples of Cestui Que Trust

  1. John Smith created a trust in which his son, Tom, is named as the cestui que trust. Tom will receive the assets of the trust when he turns 21 years old.

  2. Mary Jones established a trust for her grandchildren, where the designated trustee will distribute the assets of the trust to the cestui que trust on their 18th birthdays.

  3. The beneficiary of a life insurance policy can be the cestui que trust, who is entitled to receive the death benefits from the policy.

Legal Terms Similar to Cestui Que Trust

  1. Beneficiary: A person who receives benefits under a will or trust.

  2. Settlor: A person who sets up or establishes a trust.

  3. Trustee: A person or entity who manages and distributes the assets of a trust to the beneficiaries.