Source: http://www.residentlimited.com/glossary-of-commonly-used-terms/
Timestamp: 2018-04-22 21:47:53
Document Index: 97649999

Matched Legal Cases: ['§ 3807', '§ 856', '§ 856', '§ 860', '§ 860', '§ 3810']

Glossary of Commonly Used Terms | Delaware Resident Trustee - Resident Limited
Trust (Blacks Law Dictionary, 7th Edition): 1. The right, enforceable solely in equity, to the beneficial enjoyment of property to which another person holds the legal title; a property interest held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). For a trust to be valid, it must involve specific property, reflect the settlor’s intent, and be created for a lawful purpose. 2. A fiduciary relationship regarding property and subjecting the person with title to the property to equitable duties to deal with it for another’s benefit; the confidence placed in a trustee, together with the trustee’s obligations toward the property and the beneficiary. A trust arises as a result of a manifestation of an intention to create it. 3. The property so held. 4. A business combination that aims at monopoly.
Declaration of Trust a/k/a Trust Agreement (Blacks Law Dictionary, 7th Edition): 1. The act by which the person who holds legal title to property or an estate acknowledges that the property is being held in trust for another person or for certain specified purposes. 2. The instrument that creates a trust.
Trustee (12 Del. C. 3801 (h)): The person or persons appointed as a trustee in accordance with the governing instrument of a statutory trust, and may include the beneficial owners or any of them.
Cotrustee (Blacks Law Dictionary, 7th Edition): One of two or more persons in whom the administration of a trust is vested. The cotrustees form a collective trustee and exercise their powers jointly.
Certificate of Trust (12 Del. C. 3810 (a)): (1) Every statutory trust shall file a certificate of trust in the office of the Secretary of State. The certificate of trust shall set forth: a. The name of the statutory trust; b. The name and the business address of at least 1 of the trustees meeting the requirements of § 3807 of this title; c. The future effective date or time (which shall be a date or time certain) of effectiveness of the certificate if it is not to be effective upon the filing of the certificate; and d. Any other information the trustees determine to include therein. (2) A statutory trust is formed at the time of the filing of the initial certificate of trust in the office of the Secretary of State or at any later date or time specified in the certificate of trust if, in either case, there has been substantial compliance with the requirements of this section. A statutory trust formed under this chapter shall be a separate legal entity, the existence of which as a separate legal entity shall continue until cancellation of the statutory trust’s certificate of trust. (3) The filing of a certificate of trust in the office of the Secretary of State shall make it unnecessary to file any other documents under Chapter 31 of Title 6.
Cancellation of Trust (12 Del. C. 3810(d)): A certificate of trust shall be cancelled upon the dissolution and the completion of winding up of a statutory trust, or shall be deemed to be cancelled upon the filing of a certificate of merger or consolidation if the statutory trust is not the surviving or resulting entity in a merger or consolidation, or upon the filing of a certificate of transfer, or upon the filing of a certificate of conversion to a non-Delaware other business entity. A certificate of cancellation shall be filed in the office of the Secretary of State and set forth: (1) The name of the statutory trust; (2) The date of filing of its certificate of trust; (3) The future effective date or time (which shall be a date or time certain) of cancellation if it is not to be effective upon the filing of the certificate; and (4) Any other information the trustee determines to include therein.
Franchise Tax (Blacks Law Dictionary, 7th Edition): A tax imposed on the privilege of carrying on a business (especially as a corporation), usually measured by the business’s income.
Entity (Blacks Law Dictionary, 7th Edition): An organization (such as business or a governmental unit) that has a legal identity apart from its members.
Statutory Trust (12 Del. C. 3801(g)) “Statutory trust” means an unincorporated association which: (1) Is created by a governing instrument under which property is or will be held, managed, administered, controlled, invested, reinvested and/or operated, or business or professional activities for profit are carried on or will be carried on, by a trustee or trustees or as otherwise provided in the governing instrument for the benefit of such person or persons as are or may become beneficial owners or as otherwise provided in the governing instrument, including but not limited to a trust of the type known at common law as a “business trust,” or “Massachusetts trust,” or a trust qualifying as a real estate investment trust under § 856 et seq. of the United States Internal Revenue Code of 1986 [26 U.S.C. § 856 et seq.], as amended, or under any successor provision, or a trust qualifying as a real estate mortgage investment conduit under § 860D of the United States Internal Revenue Code of 1986 [26 U.S.C. § 860D], as amended, or under any successor provision; and (2) Files a certificate of trust pursuant to § 3810 of this title. Any such association heretofore or hereafter organized shall be a statutory trust and a separate legal entity. The term “statutory trust” shall be deemed to include each trust formed under this chapter prior to September 1, 2002, as a “business trust” (as such term was then defined in this subsection). A statutory trust may be organized to carry on any lawful business or activity, whether or not conducted for profit, and/or for any of the purposes referred to paragraph (g)(1) of this section (including, without limitation, for the purpose of holding or otherwise taking title to property, whether in an active or custodial capacity). Neither use of the designation “business trust” nor a statement in a certificate of trust or governing instrument executed prior to September 1, 2002, to the effect that the trust formed thereby is or will qualify as a Delaware business trust within the meaning of or pursuant to this chapter, shall create a presumption or an inference that the trust so formed is a “business trust” for purposes of Title 11 of the United States Code.