Florida Trusts - Chapter Review

A collection of vocabulary flashcards summarizing key terms and definitions related to Florida Trusts, as covered in the lecture.

Trust

A legal arrangement that allows a person to manage property for the benefit of another.

Trustee

The individual or entity that holds legal title to the property and manages the trust.

Beneficiary

A person or group that receives benefits from a trust.

Settlor

The person who creates a trust.

Revocable Trust

A trust that can be revoked or amended by the settlor at any time.

Irrevocable Trust

A trust that cannot be revoked or amended by the settlor once created.

Mandatory Trust

A trust where the trustee is required to make distributions to beneficiaries.

Discretionary Trust

A trust where the trustee has discretion over the timing and manner of distributions.

Rule Against Perpetuities

A legal rule that prevents trusts from lasting indefinitely.

Charitable Trust

A trust that has a charitable purpose for the benefit of the public.

Resulting Trust

A trust that arises when a trust fails, reverting property to the settlor.

Constructive Trust

A trust imposed by law to prevent unjust enrichment.

Spendthrift Provision

A provision that prevents beneficiaries from transferring their interest in a trust and protects the trust from creditors.

Pour-Over Trust

A trust created by a will that receives assets upon the death of the testator.

Power of Attorney

A legal document allowing one person to act on behalf of another.

Trust Property (Res)

The property that is held in trust for the benefit of the beneficiaries.

Trust Modification

The process of changing the terms of a trust as permitted by law or trust terms.

Beneficial Interest

The right of a beneficiary to benefit from the assets held in the trust.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another.

Life Insurance Trust

A trust that holds life insurance policies for the benefit of a specified beneficiary.

Uniform Transfers to Minors Account (UTMA)

An account set up for minors managed by a custodian, which terminates when the minor reaches a specified age.