active trust
- noun
- /ˈæktɪv trʌst/
- Formal
:
fideicomiso activo
- Unlike a passive trust, an active trust requires the trustee to make decisions and take action.
Examples
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An active trust imposes clear obligations on the trustee to act for the beneficiaries.
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The manager of the active trust is responsible for investing and distributing assets.
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An active trust is essential.
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The active trust is beneficial!
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An active trust requires the trustee to manage the estate efficiently for the benefit of the beneficiaries.
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In an active trust, the trustee must regularly report on the trust's performance to the beneficiaries.
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An active trust often involves the trustee making investment decisions to increase the value of the assets.
Antonyms
- Formal
A legal arrangement where someone holds property for another without any duties
How Active
Surface Forms
Morphology
The noun phrase is compositionally built from 'active' (performing or taking action) + 'trust' (a legal arrangement), so its meaning — a trust in which the trustee must perform duties or manage property — is directly inferable from the constituents. This follows a straightforward adjective+noun pattern and should be understandable to a B1 learner who already knows the basic legal sense of 'trust'.
Etymology
Active trust gives a simple picture: a trust is money or property kept for other people and active shows the 'trustee' must do things like decide, invest, and give money to the 'beneficiaries'. So, an active trust is a trust where the person in charge must take action for those people.