VOIDABLE TRUST Meaning and
Definition
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A voidable trust is a legal arrangement that may be invalidated or declared void by a court due to certain defects or breaches of the trust agreement. It is a type of trust that lacks some of the essential elements required for it to be fully enforceable. The invalidation may occur at the request of the settlor, beneficiaries, or a third party.
Voidable trusts often arise when there are issues with the creation or execution of the trust. These issues may include fraud, undue influence, duress, mistake, or lack of capacity of the settlor. If any of these factors are present and can be proven, a court may declare the trust void or voidable.
When a trust is deemed void or voidable, it means that it is essentially treated as if it never existed, or it can be partially set aside depending on the circumstances. In such cases, the trust property will revert to the settlor or may be distributed in a different manner as determined by the court.
It is important to note that voidable trusts differ from void trusts in that void trusts are inherently invalid and unenforceable from the beginning, whereas voidable trusts are initially valid but can be invalidated due to specific grounds specified by the law.
Overall, a voidable trust is a legal arrangement that can be declared void by a court due to defects or breaches, thereby potentially altering the distribution of the trust property.
Common Misspellings for VOIDABLE TRUST
- coidable trust
- boidable trust
- goidable trust
- foidable trust
- viidable trust
- vkidable trust
- vlidable trust
- vpidable trust
- v0idable trust
- v9idable trust
- voudable trust
- vojdable trust
- vokdable trust
- voodable trust
- vo9dable trust
- vo8dable trust
- voisable trust
- voixable trust
- voicable trust
- voifable trust
Etymology of VOIDABLE TRUST
The word "voidable" comes from the Old French term "voider" meaning "to annul" or "to invalidate". It ultimately derives from the Latin word "vocāre" which means "to call" or "to summon".
The term "trust" has its roots in the Old Norse word "traust" meaning "confidence" or "protection". This word was eventually adopted into Old English as "trēow" and later evolved into "trust".
When combined, "voidable trust" refers to a type of trust that can be invalidated or revoked under certain circumstances.
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