Corporate law Unit 20

Decedent

A person who has died, leaving behind debts and property to be managed or distributed.

Settlor

The person who creates a trust, transferring property to a trustee to be managed for the benefit of beneficiaries.

Charitable Trust

A trust established for an altruistic purpose, such as benefiting the public or a specific cause.

Trust

A legal arrangement where property is transferred to a trustee, who manages it for the benefit of a designated beneficiary.

Testamentary Trust

A trust created after the death of the settlor, according to the directions in their will.

Living Will

A document specifying a person’s choices regarding life-support measures in cases of terminal illness or vegetative state.

Codicil

A formal, written, and witnessed amendment to a will, executed with the same legal formalities as the original will.

Intestate

A person who dies without a valid will, leaving their estate to be distributed according to state laws.

Estate

All the property owned by a deceased person at the time of their death.

Fiduciary

A person or entity with the highest legal duty to act in the best interest of another, such as a trustee managing a trust for beneficiaries.

Resulting Trust

A trust formed when an express trust fails, holding the property for its original owner or the settlor’s estate.

Inter Vivo Trust

A trust created during the settlor’s lifetime, also known as a living trust.

Holographic Will

A will written entirely in the decedent’s handwriting, signed by them, and not witnessed. Changes must also be handwritten and witnessed.

Testate

A person who dies with a valid will specifying how their estate should be distributed.

Escheats

The process by which property reverts to the state when there are no inheritors for an estate.