Definitions
- Testamentary trust
- A trust or estate that arose as a consequence of the death of an individual (includes a spousal trust).
- Trust
- A binding obligation enforceable by law when undertaken. It may be created by one of the following:
- a person (either verbally or in writing);
- a court order; or
- a statute.
Generally, a trust is created when it is properly established and there is certainty of:
- the intent to create a trust;
- the property to be placed in trust; and
- who the beneficiaries of the trust are.
- Settlor
- Generally means the person who set up a trust by contributing property to the trust. In the case of a preferred beneficiary election, a settlor is restricted to a person who is otherwise the settlor of the trust and has contributed the majority of property to the trust.
- Trustee
- An individual or trust institution that holds legal title to property in trust for the benefit of the trust beneficiaries. The trustee includes an executor, administrator, assignee, receiver, or liquidator who owns or controls property for some other person.
- Beneficiary
- Includes the person for whose benefit the trust is created, the person to whom the amount of an insurance policy or annuity is payable, or the unit holder of a mutual fund trust.