property, including legal documents, but not where articles
are severed from land by an adverse possessor, at least
until recovery of possession of the land. It lies for the mis
appropriation of specific money, but not for breach of an
obligation to pay where there is no duty to return specific
money." Benjamin J Shipman, Handbook ofCommon-Law
Pleading  43, at 99 (Henry Winthrop Ballantine ed., 3d
ed. 1923).
truancy (troo-dn-see), n. (iSc) The act or state ofshirking
responsibility; esp., willful and unjustified failure to
attend school by one who is required to attend. [Cases:
Schools C=> 161.] -truant, adj. & n.
truancy officer. An official responsible for enforcing laws
mandating school attendance for minors of specified
ages (usu. 16 and under). -Also termed truant officer;
attendance officer. [Cases: Schools C=> 161.]
truant, n. A person who without permission is absent
from work or school or who shirks a duty. [Cases:
Schools ~J161.]
truce. Int'llaw. A suspension or temporary cessation of
hostilities by agreement between belligerent powers.
Also termed armistice; ceasefire; suspension ofarms.
Cf. peace treaty under TREATY (1). [Cases: War and
National EmergencyC=>33.1- trucial, adj.
general truce. A truce suspending hostilities in all
places.
special truce. A truce referring only to operations
before a specific fortress or in a district, or between
certain detachments ofarmies. Also termed partial
truce.
truck. Hist. Scots law, The payment ofwages in scrip or
goods. Truck systems, once common where workers
had to live in isolated areas and depended on company stores for food and clothing, were abolished in the 19th
century.
"Truck was payment not in money but in goods or tickets
which could be exchanged for goods, .. , The principle that
contractors could buy in bulk and retail to the workmen,
deducting the cost from their wages, was sound but was
open to abuse; in fact truck became a means of robbery.
Railway contractors frequently made more profit from
truck than from the contract, .. , Truck shops, frequently
called tommy shops or tally shops, might be run by the
contractor or let by him to an associate or a shopkeeper for
a rent or on the basis that part of the shop profits would go
back to the contractor. The goods were frequently inferior
and sold at excessive prices. David M, Walker, 6 A Legal
History ofScotland 820 (2001),
true admission. See judicial admission under ADMIs
SION (1).
true and correct. Authentic; accurate; unaltered <we
have forwarded a true and correct copy ofthe expert's
report>. Also termed true and exact.
true bill, n. (lSc) A grand jury's notation that a criminal
charge should go before a petty jury for trial <the grand
jury returned a true bill, and the state prepared to pros
ecute>. -Also termed billa vera, Cf. NO BILL. [Cases:
Grand JuryC=>42.]
true-bill, vb. To make or deliver a true bill on <the grand
jury true-billed the indictment>,
true copy. See COPY.
true defense. See DEFENSE (1).
true legal impossibility. See legal impossibility (1) under
IMPOSSIBILITY.
true mark. See technical trademark under TRADE
MARK.
true residue. See CLEAR RESIDUE.
true trademark. See technical trademark under TRADE
MARK.
true value. See fair market value under VALUE (2).
true-value rule. The rule requiring that one who sub
scribes for and receives corporate stock must pay par
value for it, in either money or its equivalent, so that
a corporation's real assets square with its books . If
true value is less than par value, the stock is deemed
unpaid for to the full extent ofthe difference, and the
affected shareholder is liable to creditors for the differ
ence, notwithstanding the directors' good faith. [Cases:
Corporations C=>232.]
true verdict. See VERDICT.
trust, n. (ISc) 1. The right, enforceable solely in equity, to
the beneficial enjoyment ofproperty 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 ofa 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. The two primary types of trusts are private
trusts and charitable trusts (see below). [Cases: Trusts
C=> 1.] 2. A fiduciary relationship regarding property
and charging the person with title to the property with

trust 1646
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 ben
eficiary. A trust arises as a result of a manifestation
of an intention to create it. See fiduciary relationship
under RELATIONSHIP. 3. Ihe property so held; CORPUS
(1).
"One must distinguish, ... [in] countries where English is
spoken, between a wide and a narrow sense of the word
'trust.' In the wide sense a trust exists when property is to
be held or administered by one person on behalf of another
or for some purpose other than his own benefit.... In
the narrow or strict sense a trust exists when the creator
of the trust ... hands over or is bound to hand over the
control of an asset which, or the proceeds of which, is
to be administered by another (the trustee or administra
tor) in his capacity as such for the benefit of some person
(beneficiary) other than the trustee or for some impersonal
object. A trust in this sense is a species of the genus 'trust'
in the wide sense." Tony Honore, The South African Law of
Trusts  1-2, at 1-3 (3d ed, 1985).
"Some courts and legal writers have defined a trust as a
certain kind of right that the beneficiary has against the
trustee, or a certain kind of interest that the beneficiary
has against the trustee, or a certain kind of interest that
the beneficiary has in the trust property, thus looking at
it from the point of view of the beneficiary, While it is true
that the beneficiary has the right or interest described,
the trust is something more than the right or interest of
the beneficiary. The trust is the whole juridical device: the
legal relationship between the parties with respect to the
property that is its subject matter, including not merely the
duties that the trustee owes to the beneficiary and to the
rest of the world, but also the rights, privileges, powers,
and immunities that the beneficiary has against the trustee
and against the rest of the world. It would seem proper,
therefore, to define the trust either as a relationship having
certain characteristics stated in the definition or perhaps
as a juridical device or legal institution involving such a
relationship," 1 Austin W, Scott & William F. Fratcher, The
Law of Trusts  2.4, at 42 (4th ed. 1987).
"In the strict, traditional a trust involves three
elements: (1) a trustee, who the trust property and
is subject to deal with it for the benefit of one or more
others; (2) one or more benefiCiaries, to whom and for
whose benefit the trustee owes duties with respect to the
trust property; and (3) trust property, which is held by
the trustee for the beneficiaries. In a more comprehensive
sense, the trust purpose is often included in discussions
of the elements of the trusts .... Although all of these
elements are present in a complete trust, either or both
of elements (1) and (2) above may be temporarily absent
without destroying the trust or preventing its creation,"
Restatement (Third) of Trusts  2 cmt. f (2003).
A-B-Q trust. See bypass trust.
A-B trust. See bypass trust.
accumulation trust. A trust in which the trustee must
accumulate income and gains from sales of trust
assets for ultimate disposition with the principal
when the trust terminates,  Many states restrict the
time over which accumulations may be made or the
amount that may be accumulated. [Cases: Trusts (;::::'
280.]
active trust. A trust in which the trustee has some
affirmative duty of management or administration
besides the obligation to transfer the property to
the beneficiary. Also termed express active trust; special trust; operative trust, Cf. passive trust. [Cases:
Trusts C=::> 135,)
Alaska trust. See asset-protection trust (1).
alimony trust. A trust in which the payor spouse
transfers to the trustee property from which the
payee spouse, as beneficiary, will be supported after
a divorce or separation.
annuity trust. A trust from which the trustee must pay
a sum certain annually to one or more beneficiaries
for their respective lives or for a term of years, and
must then either transfer the remainder to or for the
use ofa qualified charity or retain the remainder for
such a use . The sum certain must not be less than 5%
ofthe initial fair market value of the property trans
ferred to the trust by the donor. A qualified annuity
trust must comply with the requirements of IRC (26
USCA)  664. [Cases: Trusts C=::>281.j
asset-protection trust. 1. A trust designed specifically
to insulate assets from the settlor's creditors . When
the trust is created using the law of a state, it is also
termed a domestic asset-protection trust, It may also
be referred to by the name of the specific state, e.g.,
Alaska trust, Delaware trust, or Nevada trust. If it is
created under foreign law, even though the assets are
within the United States, it is also termed an offshore
asset-protection trust. 2. See self-settled trust.
bank-account trust. See Totten trust.
blended trust. A trust in which the beneficiaries are a
group, with no member of the group having a sepa
rable individual interest.  Courts rarely recognize
these trusts.
blind trust. (1969) A trust in which the settlor places
investments under the control of an independent
trustee, usu. to avoid a conflict ofinterest.  The ben
eficiary has no knowledge ofthe trust's holdings and
no right to participate in the trust's management.
bond trust. A trust whose principal consists of bonds
that yield interest income.
bypass trust. (1981) A trust into which just enough of
a decedent's estate passes, so that the estate can take
advantage of the unified credit against federal estate
taxes. See 26 USCA  2010. Also termed credit
shelter trust;A-B trust; A-B-Q trust; marital life-estate
trust. See unified estate-and-gift tax credit under TAX
CREDIT.
charitable lead trust. An irrevocable trust made in
favor of a charity and allowing the charity to receive
income from the trust property for a specified
period, after which the property reverts to the set
tlor's estate,
charitable-remainder annuity trust. A charitable
remainder trust in which the beneficiaries receive
for a specified period a fixed payment of 5% or more
of the fair market value of the original principal, after
which the remaining principal passes to charity. -
Abbr. CRAT. Also termed charitable-remainder

1649 	 trust
trust retirement fund. (Cases: Charities Trusts
charitable-remainder trust. A trust consisting ofassets
that are designated for a charitable purpose and paid
over to the trust after the expiration ofa life estate or
intermediate estate. -Abbr. CRT. Also termed
split-interest trust. [Cases: Charities
charitable-remainder-trust retirement fund. See char
itable-remainder annuity trust.
charitable trust. (1Sc) A trust created to benefit a
specific charity, specific charities, or the general
public rather than a private individual or entity.
Charitable trusts are often eligible for favorable tax
treatment. Ifthe trust's terms do not specify a charity
or a particular charitable purpose. a court may select a
charity. See Uniform Trust Act  405. -Also termed
public trust; charitable use. See charitable deduction
under DEDUCTION; CY PRES. Cf. private trust. [Cases:
Charities Internal Revenue ('='4048; Taxation
C='2337, 3328, 3488.]
Claflin trust. See indestructible trust.
Clifford trust. (1941) An irrevocable trust, set up for
at least ten years and a day, whereby income from
the trust property is paid to the beneficiary but the
property itself reverts back to the settlor when the
trust expires. -These trusts were often used by
parents -with their children as beneficiaries -to
shelter investment income, but the Tax Reform Act
of 1986 eliminated the tax advantage by imposing
the kiddie tax and by taxing the income of settlors
with a reversionary interest that exceeds 5% of the
trust's value. This term gets its name from Helvering
v. Clifford, 309 U.S. 331, 60 S.Ct. 554 (1940). -Also
termed short-term trust. [Cases: Internal Revenue
3362.]
common-law trust. See business trust under TRUST (4).
.	community trust. See COMMUNITY TRUST.
complete voluntary trllst. See executed trust.
complex trust. L A trust having elaborate provisions.
2. See discretionary trust.
constructive trust. (l8c) An equitable remedy that a
court imposes against one who has obtained property
by wrongdoing. - A constructive trust, imposed to
prevent unjust enrichment, creates no fiduciary rela
tionship. Despite its name, it is not a trust at all.
Also termed implied trust; involuntary trust; trust de
son tort; trust ex delicto; trust ex maleficio; remedial
trust; trust in invitum. See trustee de son tort under
TRUSTEE. Cf. resulting trust. [Cases


trust; trust in invitum. See trustee de son tort under
TRUSTEE. Cf. resulting trust. [Cases: Trusts
91-111.]
"A constructive trust is the formula through which the
conscience of equity finds expression. When property has
been acquired in such circumstances that the holder of the
legal title may not in good conscience retain the benefi
cial interest, equity converts him into a trustee." Beattv v.
Guggenheim Exploration Co., 122 N.E. 378, 380 (N.Y. 1919)
(Cardozo, J.l.
"It is sometimes said that when there are sufficient grounds
for imposing a constructive trust, the court 'constructs a trust' The expression is, of course, absurd. The word 'con
structive' is derived from the verb 'construe,' not from the
verb 'construct.' ... The court construes the circumstances
in the sense that it explains or interprets them; it does not
construct them." 5 Austin W. Scott & William F. Fratcher,
The Law ofTrusts  462.4 (4th ed. 1987).
contingent trust. An express trust depending for its
operation on a future event.
credit-shelter trust. See bypass trust.
Crummey trust. A trust in which the trustee has the
power to distribute or accumulate income and to give
the beneficiary the right to withdraw an amount equal
to the annual gift exclusion (or a smaller sum) within
a reasonable time after the transfer. -This type of
trust can have multiple beneficiaries and is often
used when the beneficiaries are minors. Gifts to a
Crummey trust qualify for the annual gift exclusion
regardless of the age of the beneficiaries. The trust
assets are not required to be distributed to the ben
eficiaries at age 21. The validity of this type of trust
was established in Crummey v. Commissioner, 397
F.2d 82 (9th Cir. 1968). -Also termed discretionary
trust See CRl:MMEY POWER; annual exclusion under
EXCLUSION. Cf. 2503(c) trust.
custodial trust. A revocable trust for which a custodial
trustee is named to manage the assets for an incapaci
tated or disabled beneficiary. -The beneficiary does
not have to be disabled or incapacitated at the time
the trust is created. An adult beneficiary who is not
disabled or incapacitated may terminate the trust at
any time before his or her disability, incapacity, or
death.
declared trust. See express trust.
defective trust. A trust that is treated, for income-tax
purposes, as if it were the same entity as the grantor,
but for estate-tax purposes is treated as an entity
separate from the grantor. -Typically a trust is an
independent entity that is taxed separately from the
settlor. Because trust income is taxed at higher rates
than individual income, the settlor may intentionally
create a defect in the trust terms so that the trust's
income will be taxable to the grantor. This is achieved
by violating the grantor-trust rules ofIRC  671-677
in a way that does not affect the completeness of the
gift under IRC  2035-2042. A violation renders the
trust "defective" because the settlor must recognize
the income even if the settlor does not actually receive
it. The attribution oftax liability and payment oftaxes
on trust income do not give the grantor an ownership
in the trust, which remains separate from the set
tlor's estate and is not subject to estate taxes. [Cases:
Internal Revenue <:r'-='4023.]
Delaware trust. See asset-protection trust.
destructible trust. (1953) A trust that can be destroyed
by the happening of an event or by operation oflaw.
directory trust. 1. A trust that is not completely and
finally settled by the instrument creating it, but only
defined in its general purpose and to be carried into

detail according to later specific directions. 2. See
fixed trust.
direct trust. See express trust.
discretionary trust. (1837) l. A trust in which the settlor
has delegated nearly complete or limited discretion
to the trustee to decide when and how much income
or property is distributed to a beneficiary. -This is
perhaps the most common type oftrust used in estate
planning. [Cases: Trusts ~ISO, l77.]2. See Crummey
trust. Cf. mandatory trust; CRUMMEY POWER.
domestic asset-protection trust. See asset-protection
trust (1).
donative trust. A trust that establishes a gift ofa ben
eficial interest in property for a beneficiary . Most
trusts are donative trusts. Also termed gratuitous
trust. [Cases: Trusts ~35(1).J
donor-advised trust. A trust set up by a public charity
using cash or other assets donated by a person who
will act as a director of the trust. IRC (26 USCA)
 4966(d)(2). -Also termed donor-advised fund.
dry trust. 1. A trust that merely vests legal title in
a trustee and does not require that trustee to do
anything. 2. See passive trust.
dynasty trust. A generation-skipping trust funded with
the amount that is permanently exempt from gen
eration-skipping tax and designed to last more than
two generations. -In 2000, a settlor could contribute
$1 million to a dynasty trust. Almost half the states
allow dynasty trusts, despite their potential for lasting
more than 100 years. -Also termed GST supertrust.
[Cases: Internal Revenue C-='4224.]
educational trust. 1. A trust to found, endow, or
support a school. 2. A trust to support someone's
education.
electing small-business trust. A trust of which the
beneficiaries are individuals, estates, certain chari
table organizations, or certain governmental entities,
who did not purchase an interest in the trust, and for
which the trustee has elected to be taxed under special
rules. IRC (26 USCA)  1391(e)(1). -Abbr. ESBT.
equipment trust. See EQUIPMENT TRUST.
estate trust. A trust that is established to qualify a
deceased spouse's property for the marital deduction.
 The trustee may be given discretion to distribute
principal or income to the donor's spouse ifthe donor
also provides that, at the surviving spouse's death, any
accumulated income and remaining principal must
be distributed to the surviving spouse's estate. See
marital deduction under DEDUCTION.
ex delicto trust (d;}-lik-toh). A trust that is created for
an illegal purpose, esp. to prevent the settlor's creditors
from collecting their claims out ofthe trust property.
executed trust. A trust in which the estates and inter
ests in the subject matter of the trust are completely
limited and defined by the instrument creating the
trust and require no further instruments to complete them. Also termed complete voluntary trust. [Cases:
Trusts ~114.]
executory trust (eg-zek-p-tor-ee). (l8c) A trust in
which the instrument creating the trust is intended to
be provisional only, and further conveyances are con
templated by the trust instrument before the terms of
the trust can be carried out. Also termed imperfect
trust. [Cases: Trusts 114.]
express active trust. See active trust.
express private passive trust. A trust in which land is
conveyed to or held by one person in trust for another,
without any power being expressly or impliedly given
to the trustee to take actual possession ofthe land or
exercise any ownership rights over it, except at the
beneficiary's direction. [Cases: Trusts ~136.]
express trust. (18c) A trust created with the settlor's
express intent, usu. declared in writing; an ordinary
trust as opposed to a resulting trust or a construc
tive trust. Also termed direct trust; declared trust.
[Cases: Trusts (;::c 1-61.5.1
family-pot trust. A trust in which all the assets are kept
in a single fund for the trustee to use for multiple ben
eficiaries (usu. children) . Family-pot trusts are typi
cally testamentary and used to administer a donor's
property until the donor's minor children have com
pleted their education.
family trust. A trust created to benefit persons who are
related to one another by blood, affinity, or law.
fixed trust. A trust in which the trustee may not
exercise any discretion over the trust's management
or distributions. Also termed directory trust; non
discretionary trust.
foreign-situs trust (SI-t;}S). A trust created under
foreign law. -This type oftrust usu. has no significant
income-tax benefits and is subject to greater reporting
requirements than a domestic trust. Because creditors
cannot easily reach the foreign trust's assets, it is fre
quently used as a means ofasset-protection. Also
termedforeign trust; offshore trust.
general trust. See passive trust.
generation-skipping trust. (1976) A trust that is
established to transfer (usu. principal) assets to a
skip person (a beneficiary more than one generation
removed from the settlor). The transfer is often
accomplished by giving some control or benefits (such
as trust income) of the assets to a nonskip person,
often a member ofthe generation between the settlor
and skip person. This type oftrust is subject to a gen
eration-skipping transfer tax. IRC (26 USCA)  2601
et seq. See DEEMED TRANSFEROR; GENERATION-SKIP
PING TRANSFER; generation-skipping transfer tax
under TAX; SKIP PERSON. Cf. dynasty trust. [Cases:
Internal Revenue
governmental trust. 1. A type ofcharitable trust estab
lished to prOVide a community with facilities ordinar
ily supplied by the government, esp. by a municipality,
and to promote purposes that are sufficiently beneficial

1651
to the community to justify permitting the property to
be perpetually devoted to those purposes . Examples
of such facilities include public buildings, bridges,
streets, parks, schools, and hospitals. 2. A type of
charitable trust established for general governmental
or municipal purposes, such as defraying the expenses
of a governmental entity or paying the public debt.
Restatement (Second) ofTrusts  373, 374 (1959).
grantor-retained annuity trust. An irrevocable
trust into which the grantor transfers property in
exchange for the right to receive fixed payments at
least annually, based on original fair market value of
the property transferred . At the end of the speci
fied time, the principal passes to a noncharitable
beneficiary such as the grantor's child or grandchild.
Essentially, the grantor makes to the remainderman
a current gift of the right to trust assets at a specified
date in the future. Abbr. GRAT.
grantor-retained income trust. A trust in which a
gift's value can be reduced by the grantor's retain
ing an income interest, for a specified time, in the
gifted property . At the end ofthe specified time, the
principal passes to a noncharitable beneficiary such
as the grantor's child or grandchild. Essentially, the
grantor makes to the remainderman a current gift
of the right to trust assets at a specified date in the
future. -Sometimes shortened to retained income
trust. Abbr. GRIT.
grantor-retained unitrust. An irrevocable trust into
which the grantor transfers property in exchange for
the right to receive annual payments, the amount of
which fluctuates based on the increase or decrease in
the value ofthe property transferred. -Abbr. GRUT.
Cf. grantor-retained annuity trust.
grantor trust. A trust in which the settlor retains
control over the trust property or its income to
such an extent that the settlor is taxed on the trust's
income . The types of controls that result in such tax
treatment are set out in IRC (26 USCA)  671-677.
An example is the revocable trust.
gratuitous trust. See donative trust.
GST supertrust. See dynasty trust.
honorary trust. (1844) A noncharitable trust that is
of doubtful validity because it lacks a beneficiary
capable of enforcing the trust.  Examples include
trusts for the care and support of specific animals,
or for the care ofcertain graves. The modern trend is
to recognize the validity of such trusts, if the trustee
is willing to accept the responsibility. Ifthe trustee
fails to carry out the duties, however, a resulting trust
arises in favor of the settlor's reSiduary legatees or
next ofkin. [Cases: Trusts (;::> LJ
Illinois land trust. See land trust.
illusory trust. (1939) An arrangement that looks like
a trust but, because of powers retained in the settlor,
has no real substance and is not a completed trust.
[Cases: Trusts trust
imperfect trust. See executory trust.
implied trust. 1. See constructive trust. 2. See result
ing trust.
indestructible trust. (1909) A trust that, because of the
settlor's wishes, cannot be prematurely terminated by
the beneficiary. Also termed Claflin trust.
insurance trust. A trust whose principal consists of
insurance policies or their proceeds.
inter vivos trust (in-t<lr vI-vohs or vee-vohs). (1921c) A
trust that is created and takes effect during the set
tlor's lifetime. Also termed living trust. Cf. testa
mentary trust. [Cases: Trusts (;::::> 1,58-61.]
investment trust. See investment company under
COMPANY.
involuntary trust. See constructive trust.
irrevocable trust (i-rev-<l-k<l-b<ll). (1837) A trust that
cannot be terminated by the settlor once it is created .
In most states, a trust will be deemed irrevocable unless
the settlor specifies otherwise. [Cases: Trusts C7C'59.J
land trust. A land-ownership arrangement by which
a trustee holds both legal and equitable title to land
while the beneficiary retains the power to direct the
trustee


a trustee holds both legal and equitable title to land
while the beneficiary retains the power to direct the
trustee, manage the property, and draw income from
the trust. -Also termed Illinois land trust; naked
land trust. [Cases: Trusts (;::::> 140(1).]
life-insurance trust. A trust consisting of one or more
life-insurance policies payable to the trust when the
insured dies. [Cases: Trusts
limited trust. A trust created for a limited period. Cf.
perpetual trust.
liquidating trust. A trust designed to be liquidated as
soon as possible . An example is a trust into which a
decedent's business is placed to safeguard the business
until it can be sold.
living trust. See inter vivos trust.
mandatory trust. A trust in which the trustee must dis
tribute all the income generated by the trust property
to one or more designated beneficiaries. Also
termed simple trust. Cf. discretionary trust.
marital-deduction trust. (1953) A testamentary trust
created to take full advantage of the marital deduc
tion; esp., a trust entitling a spouse to lifetime income
from the trust and sufficient control over the trust
to include the trust property in the spouse's estate
at death. See marital deduction under DEDUCTION.
[Cases: Internal Revenue (;::::>4169.]
marital life-estate trust. See bypass trust.
Massachusetts trust. See business trust under TRUST (4).
Medicaid-qualifying trust. (1989) A trust deemed to
have been created in an effort to reduce someone's
assets so that the person may qualify for Medicaid,
and that will be included as an asset for purposes of
determining the person's eligibility . A person who
wants to apply and qualify for Medicaid, but who
has too many assets to qualify, will sometimes set

up a trust -or have a spouse or custodian set up a
trust using the applicant's own assets, under which
the applicant may be the beneficiary of all or part of
the payments from the trust, which are distributed
by a trustee with discretion to make trust payments
to the applicant. Such a trust may be presumed to
have been established for the purpose of attempting
to qualify for Medicaid, and may be counted as an
asset ofthe applicant, resulting in a denial ofbenefits
and the imposition of a penalty period during which
the applicant cannot reapply. Nonetheless, Medicaid
rules allow three types of trusts that do not impair
Medicaid eligibility, since the trust assets are not con
sidered the beneficiary's property: Miller trust, pooled
trust, and under-65 trust. [Cases: Health (:=:47l(6).]
Miller trust. An irrevocable trust funded with the
income of an incompetent beneficiary who seeks to
qualify for Medicaid in a state with an income cap.
 Funding is strictly limited to the beneficiary's
income (from any source). The assets in the trust are
not included in the beneficiary's estate for Medicaid
purposes if the trust assets will be used to reimburse
the state after the beneficiary's death. Trust distri
butions are kept below the income cap in order to
preserve the beneficiary's Medicaid eligibility. This
type of trust was first judicially sanctioned in lvIiller v.
Ibarra, 746 F.Supp. 19 (D. Colo. 1990). Also termed
Miller's trust; qualified income trust.
ministerial trust. See passive trust.
minor's trust. See 2503(c) trust.
mixed trust. A trust established to benefit both private
individuals and charities.
naked land trust. See land trust.
naked trust. See passive trust.
Nevada trust. See asset-protection trust (1).
nominal trust. See passive trust.
nominee trust. 1. A trust in which the beneficiaries
have the power to direct the trustee's actions regard
ing the trust property. 2. An arrangement for holding
title to real property under which one or more persons
or corporations, under a written declaration oftrust,
declare that they will hold any property that they
acquire as trustees for the benefit of one or more
undisclosed beneficiaries. Also termed (in sense
2) realty trust. [Cases: Trusts
nondiscretionary trust. Seefixed trust.
nongrantor-owner trust. A trust in which the benefi
ciary has an unrestricted power to vest the principal
or interest in him or herself. IRC (26 USCA)  678.
Also termed 678 trust.
offshore asset-protection trust. See asset-protection
trust (l).
offshore trust. Seeforeign-situs trust.
onerous trust. A trust that places exceptionally heavy
and time-consuming duties of responsibility and
care on the trustee, often without providing for compensation . Because ofthe burden and inequity
ofrequiring the trust to be administered voluntarily,
courts often grant a trustee a reasonable sum for the
tasks performed.
oral trust. 1. A trust created by the settlor's spoken
statements as opposed to a written agreement .
Trusts of real property must usu. be in writing
(because of the statute of frauds). Trusts of personal
property may be created orally but require clear and
convincing evidence to show that an oral trust was
created. Uniform Trust Act  8407. -Also termed
parol trust. [Cases: Trusts 2. A trust created
by operation oflaw, such as a trust or a con
structive trust.
parol trust. See oral trust (1).
passive trust. A trust in which the trustee has no duty
other than to transfer the property to the benefi
ciary. Also termed dry trust; general trust; nominal
trust; simple trust; naked trust; ministerial trust; tech
nical trust. See bare trustee under TRUSTEE. Cf. active
trust. [Cases: Trusts (;::::> 136.]
pension trust. An employer-funded pension plan;
esp., a pension plan in which the employer transfers
to trustees amounts sufficient to cover the benefits
payable to the employees. [Cases: Labor and Employ
ment (;::>400.]
perpetual trust. A trust that is to continue as long as
the need for it continues, such as for the lifetime of
a beneficiary or the term of a particular charity. Cf.
limited trust.
personal-residence trust. An irrevocable trust to which
the settlor transfers ownership of his or her personal
residence while retaining the right to live there for a
specified term ofyears. The trust cannot hold any
assets other than the residence and proceeds result
ing from damage to or destruction of the residence.
Cf. qualified personal-residence trust. [Cases: Trusts
(;:--::> 1.]
personal trust. See private trust.
pet trust. An honorary trust that is established for
the care and maintenance of a particular animal or
group of animals . Pet trusts are generally invalid
because animals are incapable of compelling a trustee
to act, and animals have no standing in law. Effec
tively, the trust has no beneficiary. But some states
(e.g., Colorado) statutorily recognize these trusts as
valid. Pet trusts are covered in the Uniform Trust
Code ( 408).
pooled-income fund. See POOLED-INCOME FUND.
pooled trust. An irrevocable, discretionary trust that
(1) is established and managed by a nonprofit asso
ciation, (2) is funded with the assets of disabled
persons, and (3) maintains a separate trust account
for each benefiCiary, but (4) pools the trust assets for
investment purposes . If the trust provides for dis
tribution of a deceased beneficiary's interest to the
state in reimbursement of Medicaid expenditures, a

1653
pooled-trust beneficiary may be eligible for Medicaid
benefits. The assets contributed to the trust for the
individual's benefit are not treated as the beneficiary's
property. -Also termed pooled-assets trust. [Cases:
Trusts 011(l).]
pourover trust. (1981) An inter vivos trust that receives
property (usu. the residual estate) from a will upon
the testator's death. Cf. pourover will under WILL.
power-oj-appointment trust. (1848) A trust in which
property is left in trust for the surviving spouse.
The trustee must distribute income to the spouse for
life, and the power of appointment is given to the
spouse or to his or her estate. A power-of-appoint
ment trust is commonly used to qualify property for
the marital deduction. See marital deduction under
DEDUCTION.
precatory trust (prek-;J-tor-ee). (1878) A trust that
the law will recognize to carry out the wishes of the
testator or grantor even though the statement in
question is in the nature of an entreaty or recom
mendation rather than a command. [Cases: Trusts
c::)29.]
presumptive trust. See resulting trust.
private trust. A trust created for the financial benefit
of one or more designated beneficiaries rather than
for the public benefit; an ordinary trust as opposed to
a charitable trust. -Three elements must be present
for a private trust: (1) the demonstrated intent of the
settlor, (2) trust property (as res), and (3) a certain
beneficiary capable of enforcing the trust. -Also
termed personal trust. Cf. charitable trust. [Cases:
Trusts 01.]
protective trust. A trust that is designed to protect the
trust property to ensure the continued support ofthe
beneficiary. [Cases: Trusts 0152.]
"In a broad sense, a spendthrift, support, or other similarly
protective trust is one created to provide a fund for the
maintenance of the beneficiary and at the same time to
secure it against the beneficiary's improvidence or incapac
ity." 76 Am. Jur. 2d Trusts  121 (1992).
public trust. See charitable trust.
purchase-money resulting trust. A resulting trust that
arises when one person buys property but directs the
seller to transfer the property and its title to another.
-Although a purchase-money resulting trust is
properly understood as a court-imposed equitable
remedy rather than as a true trust, the buyer is occa
Sionally referred to as the "beneficiary" and the title
holder as the "trustee." Abbr. PMRT. [Cases: Trusts
C:>72-83.]
QTIP trust (kyoo-tip). (1985) A trust that is estab
lished to qualify for the marital deduction. _ Under
this trust, the assets are referred to as qualified-ter
minable-interest property, or QTIP. See qualified
terminable-interest property under PROPERTY. Cf.
qualified domestic trust. [Cases: Internal Revenue
C::>4169(4).] trust
qualiJied domestic trust. A trust for a noncitizen
spouse qualifying for the marital deduction. See 26
USCA  2056(d). -Abbr. QDOT. See marital deduc
tion under DEDUCTION. Cf. QTIP trust.
qualified income trust. See Miller trust.
qualified personal-residence trust. An irrevocable
trust that is funded with cash and the personal resi
dence of the grantor, who retains the right to dwell
in the residence for a specified term of years. -The
trust may receive and hold additional cash to pay for
trust expenses, mortgage installments, and improve
ments to the residence. -Abbr. QPRT. Cf. personal
residence trust. [Cases: Trusts 01.]
qualified S-corporation trust. A trust that (1) owns
stock in one or more S corporations, (2) distributes
all income to one individual (who must be a United
States citizen or resident), (3) requires only one ben
eficiary at a time, and (4) requires the income-benefi
ciary-elect to have the trust qualify as a QSST. _ The
trust is rarely termed a qualified subchapter-S corpo
ration trust but the common abbreviation is QSST,
not QSCT.
rabbicular trust. A rabbi trust that protects the trust
assets against the claims of the employer's creditors by
converting to a secular trust ifthe employer funding
the trust becomes insolvent. _ The term is a port
manteau word from rabbi and secular. Cf. rabbi trust;
secular trust.
rabbi trust. Slang. An irrevocable grantor trust whose
assets remain subject to the claims of the grantor's
general creditors, and from which benefits are paid
to the grantor's employees if a stipulated event occurs.
- A rabbi trust is a form of nonqualified deferred
compensation plan. Because the trust can be reached
by creditors, the participants can avoid being taxed
on the constructive receipt of the benefits held in the
trust. Its name derives from the IRS letter ruling that
approved its use by a synagogue. Priv. Ltr. Rul. 81-13
107 (Dec. 31, 1980). Cf. rabbicular trust; secular trust.
[Cases: Labor and Employment (:::::'431.]
real-estate investment trust. See REAL-ESTATE INVEST
MENTTRUST.
real-estate mortgage trust. See REAL-ESTATE MORTGAGE
TRUST.
realty trust. See nominal trust (2).
reciprocal trust. A trust arrangement between two
parties in which one party is beneficiary of a trust
established by the other party, and vice versa. _ Such
trusts are common between husband and wife.
remedial trust. See constructive trust.
resulting trust. (18c) A remedy imposed by equity when
property is transferred under circumstances suggest
ing that the transferor did not intend for the transferee
to have the beneficial interest in the property. Also
termed implied trust; presumptive trust. Cf. construc
tive trust. [Cases: Trusts 062-90.]

retained income trust. See grantor-retained income
trust.
revocable trust (rev-~-b-b~I). A trust in which the
settlor reserves the right to terminate the trust and
recover the trust property and any undistributed
income. [Cases: Trusts C=>59.J
savings-account trust.


property and any undistributed
income. [Cases: Trusts C=>59.J
savings-account trust. See Totten trust.
savings-bank trust. See Totten trust.
secret trust. An instrument, usu. a will, that appears
to give an absolute gift to another although the donee
has orally agreed with the grantor that he or she is to
use the property for the benefit of some third party.
 Courts admit evidence of the promise to prevent
unjust enrichment and enforce it by imposing the
remedy of a constructive trust upon the reneging
"trustee." Cf. semi-secret trust. [Cases: Trusts C=>
35(3).]
secular trust. An irrevocable trust, funded by an
employer, that protects an employee-beneficiary's
deferred compensation from the claims of creditors
during an employer's bankruptcy or insolvency. -The
trust provides the employee-beneficiary with exclu
sive rights. The employee enjoys security since the
trust is funded and the funds are beyond the reach
of creditors and immune from forfeiture, but the
employee cannot defer income recognition. Cf. rab
bicular trust; rabbi trust.
self-settled trust. (1969) A trust in which the settlor
is also the person who is to receive the benefits from
the trust, usu. set up in an attempt to protect the trust
assets from creditors . In most states, such a trust
will not protect trust assets from the settlor's credi
tors. Restatement (Second) of Trusts  156 (1959).
Also termed asset-protection trust.
semi-secret trust. An instrument that indicates who
is to serve as a trustee but fails to identify either the
beneficiary or the terms of the trust, or both. -Tra
ditionally, this trust was deemed to fail for want ofan
ascertainable beneficiary. But the modern view is to
provide the same relief as that given for a secret trust:
to receive evidence of the donor's intent, including
the intended beneficiary, and impose a constructive
trust in his or her favor. Ct~ secret trust. [Cases: Trusts
1,64.]
shifting trust. An express trust providing that, upon a
specified contingency, it may operate in favor of an
additional or substituted beneficiary.
short-term trust. See Clifford trust.
simple trust. 1. See mandatory trust. 2. See passive
trust.
678 trust. See nongrantor-owner trust.
special-needs trust. See supplemental-needs trust.
special trust. See active trust.
spendthrift trust. (1878) 1. A trust that prohibits the
beneficiary's interest from being aSSigned and also
prevents a creditor from attaching that interest; a trust by the terms of which a valid restraint is imposed
on the voluntary or involuntary transfer of the ben
eficiary's interest. [Cases: Trusts 141, 152.] 2.
A similar trust in which the restraint on alienation
results from a statute rather than from the settlor's
words in the trust instrument.
"Origin of the term 'spendthrift trust.' The phrase 'spend
thrift trust' seems to have been first used, as might be
expected, in Pennsylvania. The earliest instance in which
a use of the phrase has been found was in 1875, when it
appeared in the syllabus of a case, though the court did
not use it in its opinion. Four years later, in Overman's
Appeal [88 Pa. 276 (1879)]. the phrase is found in the audi
tor's report (in italics), while the opinion of the court in
the same case refers to the trust in question as 'a trust for
a spendthrift as it is termed' lid. at 2781. That the phrase
had not become familiar by 1882 is indicated by Thackara
v. Mintzer [100 Pa. 151 (1882)]. where the head note refers
to a 'spendthrift son trust,' but the court does not use that
or any similar phrase. And in 1883, in the first edition of
his Restraints on Alienation, Uohn Chipman] Gray used the
phrase only rarely. and then spoke rather apologetically of
'spendthrift trusts so called.' In the second edition of this
book, published twelve years later, the use of the phrase
is frequent." Erwin N. Griswold, Spendthrift Trusts  33, at
32 (2d ed. 1947).
split-interest trust. See charitable-remainder trust.
spray trust. See sprinkle trust.
sprinkle trust. A trust in which the trustee has discre
tion to decide how much will be given to each ben
eficiary. -Also termed spray trust. See SPRINKLE
POWER.
standby trust. A trust created to manage a person's
assets while he or she is out ofthe country or disabled.
Trusts (;::::> 14.]
supplemental-needs trust. A trust established to
provide supplemental income for a disabled benefi
ciary who is receiving or may be eligible to receive
government benefits. -This type of irrevocable trust
is often used by parents ofdisabled children to ensure
the beneficiary's eligibility for government benefits by
expressly prohibiting distributions that may be used
for the beneficiary's food, shelter, or clothing. [Cases:
Trusts C=> 11(1).]
support trust. (1946) A discretionary trust in which
the settlor authorizes the trustee to pay to the ben
eficiary as much income or principal as the trustee
believes is needed for support, esp. for "comfortable
support" or "support in accordance with the benefi
ciary's standard ofliving." -The beneficiary's interest
cannot be voluntarily transferred, but creditors who
provide necessaries can usu. reach it; general creditors
cannot. [Cases: Trusts
technical trust. See passive trust.
tentative trust. See Totten trust.
testamentary trust (tes-td-men-td-ree or -tree). (1832) A
trust that is created by a will and takes effect when the
settlor (testator) dies. Also termed trust under will.
Cf. inter vivos trust. [Cases: Wills (;::::>669-694.]
Totten trust. (1931) A revocable trust created by one's
deposit of money, typically in a savings account, in

1655 trust
the depositor's name as trustee for another. - A Totten
trust is an early form of"pay on death" account, since
it creates no interest in the beneficiary unless the
account remained at the depositor's death. Its name
derives from the earliest decision in which the court
approved the concept, even though the formalities of
will execution were not satisfied: In re Totten, 71 N.E.
748 (N.Y. 1904). A Totten trust is commonly used to
indicate a successor to the account without having
to create a will, and thus it is a will substitute.
Also termed tentative trust; bank-account trust; sav
ings-account trust; saVings-bank trust; trustee bank
account. [Cases: Trusts C'=:'34(l).]
"A deposit by one person of his own money, in his own
name as trustee for another, standing alone, does not
establish an irrevocable trust during the lifetime of the
depositor. It is a tentative trust merely, revocable at will,
until the depositor dies or completes the gift in his lifetime
by some unequivocal act or declaration, such as delivery
of the pass book or notice to the beneficiary. In case the
depositor dies before the beneficiary without revocation,
or some deCisive act or declaration of disaffirmance, the
presumption arises that an absolute trust was created as
to the balance on hand at the death of the depositor." In re
Totten, 179 N.Y. 112, 125-26 (1904) (Vann,J.).
transgressive trust. A trust that violates the rule against
perpetuities. See RULE AGAINST PERPETUITIES.
trust de son tort (da sawn [or son] tor[t]). See construc
tive trust.
trust ex delicto. See constructive trust.
trust ex maleficio. See constructive trust.
trust for support. A trust that, by its terms, prOVides
that the trustee must payor apply only as much of
the income and principal as is necessary for the edu
cation and support of the beneficiary. [Cases: Trusts
280.]
trust in invitum. See constructive trust.
trust under will. See testamentary trust.
2503(b) trust. A trust that requires a distribution
of income to the benefiCiary at least annually, and
provides that gifts to the trust qualifying as gifts ofa
present interest become eligible for the annual gift-tax
exclusion. -It is named after the section of the IRS
code on which it is based. IRC (26 USCA)  2S03(b).
[Cases: Internal Revenue (;::=)4206.J
2503(c) trust. A trust with only one beneficiary, who
must be a minor and must have the power to withdraw
all assets from the trust upon attaining the age of21.
This type of trust derives its name from the require
ments set forth in IRC (26 USCA)  2S03(c). Although
the trust may continue after the beneficiary turns 21,
gifts to the trust will no longer qualify for the annual
exclusion if the beneficiary has no immediate right
to withdraw the gift. -Also termed minor's trust.
[Cases: Internal Revenue C-"---:'4206.30.]
under-65 trust. A discretionary trust established for
the sale benefit ofa Medicaid recipient who is under
the age of6S. -This type of trust may be established
by anyone except the beneficiary, who must be less than 65 years old at the time of creation. The assets
in trust will not be included in the beneficiary's estate
for purposes ofdetermining Medicaid eligibility. The
beneficiary may receive distributions from the trust
during life, but any balance remaining in the trust
must be used to reimburse the state for the benefi
ciary's Medicaid expenditures.
unit-investment trust. 1. A trust in which funds are
pooled and invested in income-producing securi
ties. _ Units of the trust are sold to investors, who
maintain an interest in the trust in proportion to their
investment. 2. An investment company that gives a
shareholder an undivided interest in a fixed pool of
securities held by the trustee. -This type ofcompany
can be organized in several ways (as by trust inden
ture, contract of custodianship or agency, or similar
instrument), but is most commonly organized with
a trust indenture. Such a company does not have a
board ofdirectors and issues only redeemable securi
ties, each of which represents an und ivided interest
in a unit ofspecified securities. IS USCA  80a-4. See
investment company under COMPANY.
unitrust. (1971) A trust from which a fixed percentage
of the fai r market value of the trust's assets, valued
annually, is paid each year to the beneficiary. [Cases:
Trusts C'=:'276.]
voluntary trust. 1. A trust that is not founded on
consideration. -One having legal title to property
may create a voluntary trust by (1) declaring that
the property is to be held in trust for another, and
(2) transferring the legal title to a third person who
acts as trustee. [Cases: Trusts (;:::J 13.] 2. An obliga
tion arising out of a personal confidence reposed in,
and voluntarily accepted by, one for the benefit of
another.
voting trust. A trust used to hold shares ofvoting stock
in a closely held corporation, usu. transferred from
a parent to a child, and empowering the trustee to
exercise the right to vote. -The trust acts as custo
dian of the shares but is not a stockholder. Cf. VOTING
GROUP. [Cases: Corporations C'=:' 198.1(1).]
"At common law there was great suspicion of voting trusts.
One commentator described a voting trust as 'little more
than a vehicle for corporate kidnapping.' This attitude has
largely disappeared. State statutes now uniformly recog
nize the validity of voting trusts and they have received a
more hospitable judicial reception." Robert W. Hamilton,
The Law of Corporations in a Nutshell 199 (3d ed. 1991).
wasting trust. A trust in which the trust property is
gradually depleted by periodic payments to the ben
eficiary.
4. A business combination that aims at monopoly. See
ANTITRUST LAW.
business trust. A form ofbusiness organization, similar
to a corporation, in which investors receive transfer
able certificates ofbeneficial interest instead ofstock
shares. -Also termed Massachusetts trust; common
law trust. lCases: Internal Revenue (;:::>4206; Joint-
Stock Companies and Business Trusts 1, 8.]

trust account 1656
'The business trust was developed in Massachusetts from
1910 to 1925 to achieve limited liability and to avoid restric
tions then existing there on a corporation's acquiring and
developing real estate, by adoption of the trust device, ' , ,"
Henry G. Henn & John R. Alexander, Laws ofCorporations
 58, at 117 (3d ed. 1983).
common-law trust. See business trust.
Massachusetts trust. See business trust.
trust account. See CLIENT TRUST ACCOUNT.
trust agreement. See declaration oftrust (2) under DEC
LARATION (1).
trustbuster, n. A person esp. a federal officer -who
seeks the dissolution ofbusiness trusts under the anti
trust laws. See business trust under TRIJST (4).
trust certificate. See EQUIPMENT TRUST CERTIFICATE.
trust company. See COMPANY.
trust corporation. See trust company under COMPANY.
trust deed. 1. See declaration oftrust (2) under DECLARA
TION (1).2. See deed oftrust under DEED.
trust de son tort (da sawn [or son] tor[tD. See construc
tive trust under TRUST.


trust de son tort (da sawn [or son] tor[tD. See construc
tive trust under TRUST.
trust distribution. See DISTRIBUTION.
trustee (tras-tee), n. (l7c) 1. One who stands in a fidu
ciary or confidential relation to another; esp., one who,
having legal title to property, holds it in trust for the
benefit of another and owes a fiduciary duty to that
beneficiary . Generally, a trustee's duties are to convert
to cash all debts and securities that are not qualified
legal investments, to reinvest the cash in proper securi
ties, to protect and preserve the trust property, and to
ensure that it is employed solely for the beneficiary, in
accordance with the directions contained in the trust
instrument. [Cases: Trusts 171.]
bare trustee. A trustee of a passive trust. A bare
trustee has no duty other than to transfer the property
to the beneficiary. See passive trust under TRUST.
corporate trustee. (1S52) A corporation that is empow
ered by its charter to act as a trustee, such as a bank
or trust company.
indenture trustee. A trustee named in a trust inden
ture and charged with holding legal title to the trust
property; a trustee under an indenture.
joint trustee. See COTRUSTEE.
judicial trustee. (ISc) A trustee appointed by a court
to execute a trust.
quasi-trustee. (1830) One who benefits from a breach
of a trust to a great enough degree to become liable
as a trustee.
successor trustee. (1866) A trustee who succeeds an
earlier trustee, usu. as provided in the trust agree
ment. [Cases: Trusts C=>169,243.]
testamentary trustee (tes-t;J-men-t;J-ree or -tree). (1811)
A trustee appointed by or acting under a will; one
appointed to carry out a trust created by a will. [Cases:
Wills \.~681.] township trustee. One ofa board ofofficers to whom, in
some states, a township's affairs are entrusted. [Cases:
Towns C=>28.]
trustee ad litem (ad h-tem or -t;Jm). (1921) A trustee
appointed by the court.
trustee de son tort (d<'J sawn [or son) tor[t]). (1857) A
person who, without legal authority, administers
a living person's property to the detriment of the
property owner. See constructive trust under TRUST.
[Cases: Trusts
trustee ex maleficio (eks mal-a-fish-ee-oh). (1837)
A person who is guilty of wrongful or fraudulent
conduct and is held by equity to the duty ofa trustee,
in relation to the subject matter, to prevent him or her
from profiting from the wrongdOing.
2. Bankruptcy. A person appointed by the U.S. Trustee
or elected by creditors or appointed bya judge to admin
ister the bankruptcy estate during a bankruptcy case .
The trustee's duties include (1) collecting and reducing
to cash the assets ofthe estate, (2) operating the debtor's
business with court approval ifappropriate to preserve
the value ofbusiness assets, (3) examining the debtor at
a meeting ofcreditors, (4) filing inventories and making
periodic reports to the court on the financial condi
tion ofthe estate, (5) investigating the debtor's financial
affairs, (6) examining proofs ofclaims and objecting to
improper claims, (7) furnishing information relating to
the bankruptcy to interested parties, and (8) opposing
discharge through bankruptcy, if advisable. A trustee
is appointed or elected in every Chapter 7 case, and
is appointed in every Chapter 12 and Chapter 13 case
under the Bankruptcy Code. A trustee is not appointed
or elected in a Chapter 11 case unless the court finds
that a trustee is needed and appoints one. In most
Chapter 11 cases, the bankruptcy estate is administered
by the debtor in possession, rather than by a trustee.
The role ofa bankruptcy trustee varies depending on
the type ofbankruptcy case. 11 USC A  701-03,1104,
1202. -Also termed (in sense 2) bankruptcy trustee;
trustee in bankruptcy. See UNITED STATES TRUSTEE.
[Cases: Bankruptcy C=>3001-3011.J
interim trustee. A bankruptcy trustee appOinted to
perform all the functions and duties ofa trustee until
the regular trustee is selected and qualified. Before
the meeting ofcreditors, the interim trustee often pre
liminarily investigates the debtor's assets and finan
cial affairs. [Cases: Bankruptcy
3. DIRECTOR (2). 4. Parliamentary law. An officer who
audits an organization's finances.
trustee, vb. (181S) 1. To serve as trustee. 2. To place
(a person or property) in the hands of one or more
trustees. 3. To appoint (a person) as trustee, often of a
bankrupt's estate in order to restrain a creditor from
collecting moneys due. 4. To attach (the effects of a
debtor) in the hands ofa third person.
trustee, U.S. See CNITED STATES TRUSTEE.
trustee bank account. See Totten trust under TRUST.

1657 turnkey
trustee in bankruptcy. See TRUSTEE (2).
trustee process. See FACTORIZI:sTG PROCESS.
trusteeship. 1. The office, status, or function ofa trustee.
2. Int'llaw. Administration or supervision ofa territory
by one or more countries, esp. under a U.N. trusteeship
council. Cf. MANDATE (6).
trust estate. See CORPUS (1).
trust ex delicto. See constructive trust under TRUST.
trust ex maleficio. See constructive trust under TRUST.
trust fund. (I8c) The property held in a trust by a trustee;
CORPUS (1). [Cases: Trusts C~L]
common trust fund. (1852) A trust fund set up within a
trust department to combine the assets ofnumerous
small trusts to achieve greater investment diversifi
cation. -Common trust funds are regulated by state
law.
pooled-income fund. See POOLED-INCOME FU:sTD.
trust-fund doctrine. (1892) The principle that the assets
of an insolvent company, including paid and unpaid
subscriptions to the capital stock, are held as a trust
fund to which the company's creditors may look for
payment of their claims. -The creditors may follow
the property constituting this fund, and may use it to
reduce the debts, unless it has passed into the hands of
a bona fide purchaser without notice. -Also termed
trust-fund theory. [Cases: Corporations C=544(2).j
trust indenture. See INDENTURE.
Trnst Indenture Act. A federal law, enacted in 1939,
designed to protect investors ofcertain types ofbonds
by requiring that (1) the SEC approve the trust inden
ture, (2) the indenture include certain protective
clauses and exclude certain exculpatory clauses, and
(3) the trustees be independent ofthe issuing company.
15 USCA  77aaa et seq. -The Act is administered by
the U.S. Securities and Exchange Commission. [Cases:
. Securities Regulation (;"":;J29.10-29.14.J
trust indorsement. See INDORSEME:sTT.
trust in invitum (in in-vI-t;;Jm). See constructive trust
under TRUST.
trust instrument. See declaration oftrust (2) under DEC-
LARATJO:sT (1).
trust legacy. See LEGACY.
trust officer. See OFFICER (1).
trustor. (1855) One who creates a trust; SETTLOR (1).
trust ownership. See OW:sTERSHIP.
trust power. See beneficial power under POWER (5).
trust process. See PROCESS.
trust property. See CORPUS (1).
trust receipt. 1. A pre-UCC security device -now
governed by Article 9 of the Code -consisting of a
receipt stating that the wholesale buyer has possession
of the goods for the benefit of the financier. -Today
there must usu. be a security agreement coupled with
a filed financing statement. [Cases: Chattel Mortgages Sales (::'~454.1 2. A method of financing com
mercial transactions by which title passes directly from
the manufacturer or seller to a banker or lender, who as
owner delivers the goods to the dealer on whose behalf
the banker or lender is acting, and to whom title ulti
mately goes when the banker's or lender's primary right
has been satisfied.
trust relationship. See RELATIONSHIP.
trust res (reez or rays). See CORPUS (1).
trust territory. See TERRITORY.
trust under will. See testamentary trust under TRUST.
trusty, n. (1855) A convict or prisoner who is considered
trustworthy by prison authorities and therefore given
special privileges. [Cases: Prisons 113, 170.]
truth. (bef. 12c) 1. A fully accurate account of events;
factuality. 2. Defamation. An affirmative defense by
which the defendant asserts that the alleged defama
tory statement is substantially accurate. [Cases: Libel
and Slander
Truth in Lending Act. See CONSl;MER CREDIT PROTEC
TION ACT. -Abbr. TILA.
truth-seeker. One who strives to reveal the truth <the
trial lawyer should be a truth-seeker>.
truth, the whole truth, and nothing but the truth. The
words used in the common oath administered to a
witness who is about to testify <do you swear or affirm
that you shall tell the truth, the whole truth and nothing
but the truth?>. _ The purpose ofthe second part ofthe
oath is to preclude the possibility ofsupressio veri; the
purpose ofthe third part is to preclude the possibility of
suggestio falSi. See SUPPRESSIO VERI; SUGGESTIO FALSI.
[Cases: Oath Witnesses ~227.]
try, vb. (l3c) To examine judicially; to examine and
resolve (a dispute) by means ofa trial.
try title. The judicial examination ofa title. See TRESPASS
TO TRY TITLE; action to quiet title under ACTION (4).
TSCA. abbr. Toxic Substances Control Act. 42 USCA
 2601 et seq. [Cases: Environmental Law (;::::>413.]
TTB. abbr. ALCOHOL AND TOBACCO TAX AND TRADE
BUREAU.
tubman (tab-m;m). Hist. A junior barrister in the Court
of Exchequer who made motions that were second in
precedence to those ofthe postman. -'The tubman was
so called because he stood by a tub anciently used as a
measure ofcapacity. Cf. POSTMAN.
Tucker Act. A federal law enacted in 1887 to amelio
rate the inadequacies of the original authority of the
Court ofClaims by extending that court's jurisdiction
to include (1) claims founded on the Constitution, a
federal statute, or a federal regulation, and (2) damage
claims in cases not arising in tort. [Cases: Federal
Courts C= 1071.]
turncoat witness. See WITNESS.
turnkey, adj. (1927) 1. (Of a product) provided in a state
of readiness for immediate use <a turnkey computer

turnkey 1658
network>. 2. Of, relating to, or involving a product
provided in this manner <a turnkey contract>.
turnkey, n. A jailer; esp., one charged with keeping the
keys to a jail or prison.
turnkey contract. See engineering, procurement, and
construction con tract under CONTRACT.
turnkey drilling contract. See DRILLING CONTRACT.
turnover duty. Maritime law. A shipowner's obligation
to provide safe working conditions and to give notice
of any nonobvious hazards regarding instruments and
areas that the shipowner turns over to the stevedore
and longshoremen while the ship is being loaded or
unloaded. Cf. ACTIVE-OPERATIONS DUTY; INTERVEN
TION DUTY. [Cases: Shipping ~84(3).1
turnover order. See ORDER (2).
turn state's evidence, vb. (1846) To cooperate with
prosecutors and testify against other criminal defen
dants <after hours of intense negotiations, the suspect
accepted a plea bargain and agreed to turn state's
evidence>.
turntable doctrine. See ATTRACTIVE-NUISANCE DOC
TRINE.
turpis causa (tar-pis kaw-za). [Latin "immoral consid
eration"] See immoral consideration under CONSIDER
ATION (1).
turpitude (tar-pa-t[y]ood). See MORAL TURPITUDE.
tutela (t[yloo-tee-Ia), n. [Latin "tutelage"] Roman law.
A type of guardianship either for those not having
reached puberty (tutela impuberum) or for women
(tutela mulierum). -The guardian was called the tutor,
the ward the pupillus. Guardians for women no longer
existed in Justinian's time. Cf. CURA.
tutelage (t[y]oo-t<l-lij), n. 1. The act of protecting or
guiding; guardianship. 2. Int'llaw. The state of being
under the care and management of an international
organization such as the League of Nations or United
!\ations. _ This term applies, for example, to the status
of a people who do not yet benefit from a fully opera
tional government of their own -such as people dis
placed by war and living in a territory that will in the
future


fully opera
tional government of their own -such as people dis
placed by war and living in a territory that will in the
future be given its autonomy.
tutor, n. 1. One who teaches; esp., a private instructor. PI.
tutors. 2. Roman & civil law. A guardian of a minor; a
person appointed to have the care ofthe minor's person
and estate. -The guardian of a minor past the age of
puberty is called a curator and has duties somewhat
different from those of a tutor. PI. tutores. [Cases:
Guardian and Ward ~1O, 17.]
tutor dativus (t[y]oo-tor [or -dr] da-tI-vas). [Latin]
Roman law. A tutor appointed by the court upon
application. PI. tutores dativi.
tutor gerens (t[y]oo-tor [or -tdr] jeer-enz). [Latin]
Roman law. A tutor who, though not sole tutor,
actually administered the ward's affairs. PI. tutores
gerentes. tutor legitimus (tfy]oo-tor [or -ar]ld-jit-i-mas). [Latin]
Roman law. A tutor-at-law; a tutor by virtue of the
relationship with the pupil, such as a paternal uncle.
PI. tutores legitimi.
tutor testamentarius (t[y]oo-tor [or -dr] tes-td-men
tair-ee-ds). [Latin] Roman law. A tutor appointed
by will to have the guardianship over the testator's
children. PI. tutores testamentarii.
undertutor. Civil law. A person appointed by a court
to represent a minor under the care of a tutor when
the interests of the minor conflict with that of the
tutor. See TUTORSHIP. [Cases: Guardian and Ward
tutorio nomine (t[y]oo-tor-ee-oh nahm-a-nee). [Latin]
Hist. In the name and character of tutor.
tutor legitimus. See TUTOR.
tutorship. Civil law. The office and power of a tutor; the
power that an individual has, sui juris, to take care of
one who cannot care for himself or herself. _ The four
types oftutorship are (1) tutorship by nature, (2) tutor
ship by will, (3) tutorship by the effect of the law, and
(4) tutorship by judicial appointment. La. Civ. Code art.
247. [Cases: Guardian and Ward
dative tutorship. Civil law. Tutorship that arises from
a court's appointment, usu. on the advice of the
family. -Also termed dative curatorship; tutorship
by judicial appointment. [Cases: Guardian and Ward
G'=' 10.]
legal tutorship. Civil law. Tutorship that is bestowed
by statute and does not require a court's or family's
approval.  For example, a spouse has the legal tutor
ship ofthe incompetent spouse. -Also termed tutor
ship by the effect of the law. [Cases: Guardian and
Ward C::> 10.]
tutorship byjudicial appointment. Civil law. See dative
tutorship.
tutorship by nature. 1. Tutorship ofa minor child that
belongs by right to a surviving parent. 2. Tutorship of
a minor child that belongs to the parent under whose
care the child has been placed following divorce or
judicia] separation. -Ifthe parents are awarded joint
custody, both have cotutorship and equal authority,
privileges, and responsibilities. La. Civ. Code art. 250.
[Cases: Child Custody C-:;) 1.]
tutorship by the effect ofthe law. Civi/law. See legal
tutorship.
tutorship by will. Tutorship that is created (1) by the
will ofthe parent who dies last, or (2) by any declara
tion of the surviving father or mother (or the parent
who is the curator of the other spouse), executed
before a notary and two witnesses. La. Civ. Code art.
257.
tutor testamentarius. See TUTOR.
tutory (t[y]oo-tdr-ee). 1. Guardianship; charge. 2.
Tutorage; tutelage. Also spelled tutry; tutoury. Cf.
TUTELAGE (1).

1659
tutrix. Archaic. A female tutor. See TUTOR (2).
tutus accessusnonfuit (t[y]oo-ta$ ak-ses-as non fyoo-it).
[Latin] Hist. There was no safe access.
TVA. abbr. TENNESSEE VALLEY AUTHORITY.
Twelfth Amendment. The constitutional amendment,
ratified in 1804, that altered the electoral-college system
by separating the balloting for presidential and vice
presidential candidates . In 1800, members of the
Electoral College could cast votes only for the office
of President, and Thomas Jefferson and his running
mate Aaron Burr each received the same number of
votes. The House of Representatives had to break the
tie. [Cases: United States
twelve-day rule. Criminal procedure. A rule in some
jurisdictions requiring that a person charged with a
felony be given a preliminary examination no later than
12 days after the arraignment on the original warrant.
[Cases: Criminal LawC=)264.]
twelve-month liquidation. See LIQUIDATION.
Twelve Tables. Roman law. 1he earliest surviving legiS
lation enacted by the Romans, written on 12 tablets in
the 5th century B.C. The Tables set out many rights
and duties of Roman citizens, including debtors' rights,
family law, wills, torts, civil procedure, and some public
law. 1hey substituted a written body oflaws, easily
accessible and binding on all citizens of Rome, for an
unwritten usage accessible to only a few. The law ofthe
Twelve Tables was also known as the Lex Duodecim
Tabularum.
"The Twelve Tables continued to be recognized for many
centuries as the fundamental law of the Romans; they did
not formally lose this character until it was taken from
them by the legislation ofJustinian:' James Hadley, Intro
duction to Roman Law 74-75 (1881).
Twentieth Amendment. The constitutional amendment
ratified in 1933, that changed the date of the presiden
tial and vice-presidential inaugurations from March 4
. to January 20, and the date for congressional conven
tion from March 4 to fanuary 3, thereby eliminating
the short session of Congress, during which a number
of members sat who had not been reelected to office.
Also termed lame-duck amendment. [Cases: United
States
Twenty-fifth Amendment. The constitutional amend
ment, ratified in 1967, that established rules of suc
cession for the presidency and vice presidency in the
event of death, resignation, or incapacity. Article II,
 1 ofthe Constitution provides for the Vice President
to assume the President's powers and duties but does
not clearly state that the Vice President also assumes
the title of President. [Cases: United States
Twenty-first Amendment. The constitutional amend
ment, ratified in 1933, that repealed the 18th Amend
ment (which established national Prohibition) and
returned the power to regulate alcohol to the states.
[Cases: Intoxicating Liquors 17.]
2503(b) trust. See TRUST (3).
2503(,) trust. See TRUST (3), two-issue rule
Twenty-fourth Amendment. The constitutional amend
ment, ratified in 1964, that prohibits the federal and
state governments from restricting the right to vote in
a federal election because ofone's failure to pay a poll
tax or other tax. [Cases: Elections ~83.]
Twenty-second Amendment. The constitutional amend
ment, ratified in 1951, that prohibits a person from
being elected President more than twice (or, if the
person succeeded to the office with more than half the
predecessor's term remaining, more than once). [Cases:
United States C=>26.]
Twenty-seventh Amendment. The constitutional
amendment, ratified in 1992, that prevents a pay raise
for senators and representatives from taking effect
until a new Congress convenes . This amendment was
proposed as part of the original Bill of Rights in 1789,
but it took 203 years for the required three-fourths of
the states to ratify it. -Also termed Madison Amend
ment. [Cases: United States ~39(6).l
Twenty-sixth Amendment. The constitutional amend
ment, ratified in 1971, that sets the minimum voting
age at 18 for all state and federal elections. [Cases: Elec
tions G-'-:::> 18.]
Twenty-third Amendment. The constitutional amend
ment, ratified in 1961, that allows District ofColumbia
residents to vote in presidential elections. [Cases:
United States
twist, n. Slang. An informant who provides testimony
in exchange for leniency in sentencing, rather than for
money. See INFORMANT.
twisting, n. An insurance agent's or company's misrep
resenting or misstating facts, or giving an incomplete
comparison of policies, to induce an insured to give up
a policy in one company and buy another company's
policy. [Cases: Insurance G-'-:::> 1563, 1618.]
two-controlled-studies standard. The requirement by
the Federal Trade Commission that before the maker
of an over-the-counter painkiller can advertise that it
is better or has fewer side effects than another brand,
the maker must verify the claim in two scientifically
controlled studies.
two-dismissal rule. (1944) The rule that a notice ofvol
untary dismissal operates as an adjudication on the
merits -not merely as a dismissal without prejudice
when filed by a plaintiff who has already dismissed the
same claim in another court. [Cases: Federal Civil Pro
cedure C--:;) 1714; Pretrial Procedure C=>'519.]
245(i) waiver. Immigration law. An Immigration and
Nationality Act provision that allows certain quali
fied aliens who are otherwise ineligible for adjustment
of their status to pay a penalty for the convenience of
having their status adjusted to permanent-resident
status without having to leave the United States. 8
USCA  1255(i). Cf. ADJUSTMENT OF STATUS. [Cases:
Aliens, Immigration, and Citizenship C=>309.]
two-issue rule. (1929) The rule that if multiple issues
were submitted to a trial jury and at least one of them

1660 two-party payment
is error-free, the appellate court should presume that
the jury based its verdict on the proper issue -not on
an erroneous one -and should therefore affirm the
judgment. [Cases: Appeal and Error <>1068(2).]
two-party payment. See PAYMENT.
two-round voting. See VOTING.
two-stage trial. See bifurcated trial under TRIAL.
two-tier offer. A two-step technique by which a bidder
tries to acquire a target corporation, the first step
involving a cash tender offer and the second usu. a
merger in which the target company's remaining share
holders receive securities from the bidder (these securi
ties ordinarily being less favorable than the cash given
in the first step).
two-witness rule. (1900) 1. The rule that, to support
a perjury conviction, two independent witnesses (or
one witness along with corroborating evidence) must
establish that the alleged perjurer gave false testimony.
[Cases: Perjury <>34.] 2. The rule, as stated in the
U.S. Constitution, that no person may be convicted of
treason without two witnesses to the same overt act
or unless the accused confesses in open court. U.S.
Canst. art. IV,  2, d. 2. [Cases: Treason <>13.]
tying, adj. Antitrust. Of or relating to an arrangement
whereby a seller sells a product to a buyer only if the
buyer purchases another product from the seller <tying
agreement>. [Cases: Antitrust and Trade Regulation
<>568.J
tying arrangement. Antitrust. (1953) A seller's agreement
to sell one product or service only ifthe buyer also buys
a different product or service; a seller's refusal to sell
one product or service unless the buyer also buys a dif
ferent product or service. -The product or service that
the buyer wants to buy is known as the tying product or
tying service; the different product or service that the
seller insists on selling is known as the tied product or
tied service. Tying arrangements may be illegal under
the Sherman or Clayton Act if their effect is too anti
competitive. -Also termed tying agreement; tie-in;
tie-in arrangement. cr. RECIPROCAL DEALING. [Cases:
Antitrust and Trade Regulation <>568.] "The courts have developed an easily articulated text for
so-called per se illegal tying arrangements, although the
test varies from one circuit court to another.... In opera
tion. the tests are similar, and the threepart test combines
elements that are separated in the tests of other circuits.
For purpose of analYSis we use this fivepart test: (1) There
must be separate tying and tied products; (2) there must
be 'evidence of actual coercion by the seller that in fact
forced the buyer to accept the tied product .. .'; (3) the
seller must possess 'sufficient economic power in the tying
product market to coerce purchaser acceptance of the tied
product. .'; (4) there must be 'anticompetitive effects in
the tied market .. .'; and (5) there must be 'involvement of
a "not insubstantial" amount of interstate commerce in the
tied product market ....'" Herbert Hovenkamp, Federal
Antitrust Policy 392 (2d ed. 1999) (quoting Yetsch v. Texaco,
Inc., 630 F.2d 46, 56, 57 (2d Or. 1980.
"The traditional


0 F.2d 46, 56, 57 (2d Or. 1980.
"The traditional objection to tying arrangements is that they
enable a firm having a monopoly in one market to obtain a
monopoly in a second one. Thus, a firm having monopoly
power in the market for business machines could obtain a
monopoly on punch cards as well simply by refusing to sell
or lease its machines unless the purchaser or lessee agreed
to use only its punch cards in the machines." Richard A.
Posner, Antitrust Law 197 (2d ed. 2001).
tying product. See TYING ARRANGEMENT.
tying service. See TYING ARRANGEMENT.
typed drawing. See DRAWING.
typed-form drawing. See typed drawing under
DRAWING.
typographum (tI-pog-r~-fdm). [Latin] Hist. Impressed
by use of a type, as distinguished from chirographum
("written by hand").
tyranny. 1. The severe deprivation of a natural right.
2. The accumulation of all powers the legislative,
executive, and judicial- in the same hands (whether
few or many). _ Sense 2 expresses the Madisonian
view of tyranny, to be found in The Federalist, No. 47.
3. Arbitrary or despotic government; the severe and
autocratic exercise ofsovereign power, whether vested
constitutionally in one ruler or usurped by that ruler by
breaking down the division and distribution of govern
mental powers. tyrannical, tyrannous, adj.
tyrant, n. A sovereign or ruler, legitimate or not, who
wields power unjustly and arbitrarily to oppress the
citizenry; a despot.

u
U3C. abbr. U~IFORM CONSUMER CREDIT CODE.
UAA. abbr. UNIFORM ADOPTION ACT.
UAGA. abbr. UNIFORM ANATOMICAL GIFT ACT.
U.B. abbr. Upper Bench. See barlCus superior under
BANCUS.
uberior titulus (yoo-heer-ee-or tich-a-lds). [Latin] Hist.
The fuller title.
uberrimae fidei (yoo-her-d-mee fi-dee-I). [Latin] (1850)
Of the utmost good faith. See contract uberrimae fidei
under CONTRACT. [Cases; Insurance <:;=1867, 2996.]
uberrimafides (yoo-ber-J-mJ fI-deez), n. [Latin] Utmost
good faith <a contract requiring uberrima fides>.
ubi (yoo-bI or oo-bee). [Latin] Where.
ubi aberat animus foenerandi (YOO-bI a-her-at an-a-mas
fee-n;l-ran-dI). [Latin] Hist. Where the intention of
taking of a usurious interest was wanting. _ A lender
was not liable for usurious provisions in a contract
unless the lender had the requisite intention ofexacting
the money. Cf. USURA VELATA.
ubi defunctus habuit domicilium (yoO-bI di-bngk-t;ls
hay-byoo-it dom-;l-sil-ee-Jm). [Law Latin] Scots law.
Where the decedent had his domicile.
ubi dies cessit, licet nondum venerit (yoO-hI dI-eez
ses-it, II-set non-dam vJ-neer-it). [Latin] Hist. In the
case where the time has arrived at which money is due,
although that time has not arrived at which it may be
exacted. See DEBITUM IN DIEM.
ubi dolus dedit causam contractui (yoo-bl doh-bs
dee-dit kaw-zJm bn-trak-choo-I). [Latin] Hist. Where
fraud gave rise to the contract.
ubi re vera (YOO-bI ree veer-;l). [Latin] Where in reality;
when in truth or in point of fact.
ubi supra (YOO-bI s[y]oo-pra). [Latin] Where stated
above.
Uce. abbr. 1. UNIFORM COMMERCIAL CODE. 2. UNIVER
SAL COPYRIGHT CONVENTIO~.
UCC hattIe of the forms. See BATTLE OF THE FORMS.
UCCC. abbr. UNIFORM CONSUMER CREDIT CODE.
UCCJA. abbr. UNIFORM CHILD CUSTODY JURISDICTION
ACT.
UCCJEA. abbr. UNIFORM CHILD CUSTODY JURISDICTION
AND ENFORCEMENT ACT.
UCE. abbr. Unsolicited commercial e-mail. See SPAM.
UCITA. abbr. UNIFORM COMPUTER INFORMATION
TRANSACTIONS ACT.
UCMJ. abbr. UNIFORM CODE OF MILITARY JUSTICE.
UCP. abbr. UNIFORM CUSTOMS AND PRACTICE FOR COM
MERCIAL DOCUMENTARY CREDITS. UCR. abbr. UNIFORM CRIME REPORTS.
UDITPA. abbr. UNIFORM DIVISION OF INCOME FOR TAX
PURPOSES ACT.
UDRA. abbr. UNIFORM DIVORCE RECOGNITION ACT.
UDRP. abbr. UNIFORM DOMAIN-NAME DISPUTE-RESO
LUTION POLICY.
UDTPA. abbr. UNIFORM DECEPTIVE TRADE PRACTICES
ACT.
UETA. abbr. U~IFORM ELECTRONIC TRANSACTIONS
ACT.
UFCA. abbr. UNIFORM FRAUDULENT CONVEYANCES
ACT.
UFTA. abbr. UNIFORM FRAUDULENT TRANSFER ACT.
UGMA. abbr. Uniform Gifts to Minors Act. See UNIFORM
TRANSFERS TO MINORS ACT.
UHCDA. abbr. UNIFORM HEALTH-CARE DECISION ACT.
UIFSA. abbr. UNIFORM INTERSTATE FAMILY SUPPORT
ACT.
UUe. abbr. UNIFORM INTERSTATE JUVENILE COMPACT.
UJCA. abbr. UNIFORM Jt:VENILE COURT ACT.
U.K. abbr. UNITED KINGDOM.
ukase (yoo-kays oryoo-kays). (I8c) A proclamation or
decree, esp. of a final or arbitrary nature. _ This term
originally referred to a decree issued by a Russian
czar.
ullage (al-ij), n. The degree to which a container ofliquid
falls short of being full.
ullage, vb. To determine the amount of ullage in a con
tainer holding liquid.
ulna ferrea (al-na fer-ee-J). [Law Latin "iron eW] Hist.
An iron measuring device, approximately a yard in
length, kept in the Exchequer as a standard measure.
ulnage (ill-nij). Alnage. See ALNAGER.
ULPA. abbr. UNIFORM LIMITED PARTNERSHIP ACT.
ulterior intent. See INTENT (1).
ulterior remainderman. See REMAINDERMAN.
ultima ratio (ill-ti-ma ray-shee-oh). [Latin] 1. The final
argument; the last resort; the means last to be resorted
to. 2. A final sanction.
ultimate fact. See FACT.
ultimate issue. See ISSUE (1).
ultimate question. See ultimate issue under ISSUE (1).
ultimate species. See SPECIES (2).
ultimatum C:lI-ta-may-t;lm), n. (18c) The final and cate
gorical proposal made in negotiating a treaty, contract,
or the like. -An ultimatum implies that a rejection

1662 ultimatum supplicum
might lead to a break-off in negotiations or, in interna
tionallaw, to a cessation ofdiplomatic relations or even
to war. PI. ultimatums.
ultimatum supplicum. [Law Latin "final or extreme pun
ishment,,] Capital punishment.
ultimogeniture. See BOROUGH ENGLISH.
ultimo loco (al-ii-moh loh-koh). [Latin] Hist. In the last
place. -The phrase usu. referred to the position of a
claimant who takes only after all other claims have been
satisfied.
ultimum tempus pariendi (al-ti-m"m tem-p"s par-ee
en-dl). [Law Latin "last date for giving birth"] Hist. A
time beyond or after which a child may not be born.
-The phrase was used, for example, in determining
legitimacy or paternity.
ultimus heres (al-ti-m"s heer-eez). See HERES.
ultra fines compromissi (al-tm fI-neez kom-pr,,-mis-l).
[Law Latin] Hist. Beyond the limits ofthe submission
to arbitration. See ULTRA VIRES COMPROMISSI.
ultra fines decreti (;d-tra fI-neez di-kree-tI). [Law LatinI
Hist. Beyond the limits ofthe decree.
ultra fines mandati (al-tr" fI-neez man-day-tI). [Law
Latin] Hist. Beyond the limits ofthe mandate.
ultrahazardous. See EXTRAHAZARDOUS.
ultrahazardous activity. See ABNORMALLY DANGEROUS
ACTIVITY.
ultra licitum (al-tra lis-i-tam). [Law Latin] Hist. Beyond
what is permissible or legaL
ultra mare (al-tr" mair-ee or mahr-ee). [Latin] See
BEYOND SEAS.
ultra petita (al-tr" p,,-tI-ta). [Law Latin] Hist. Beyond
that which was sought.
"A judgment or decision is said to be ultra petita when it
awards more than was sought or sued for in the petition
or summons; and the same thing is said of a sentence
when it [does] not conform to its grounds and warrants.
This affords a good ground for the reversal or reduction
of such a decree." John Trayner, Trayner's Latin Maxims
609-10 (4th ed. 1894).
ultra reprises (al-trd ri-prIz-iz). After deduction of
expenses; net.
ultra valorem (al-tra va-lor-"m). [Law Latin] Hist.
Beyond the value.
ultra vires (31-trd VI-reez also veer-eez), adj. [Latin
"beyond the powers (of)"] (I8c) Unauthorized; beyond
the scope of power allowed or granted by a corporate
charter or by law <the officer was liable for the firm's
ultra vires actions>. -Also termed extra vires. Cf.
INTRA VIRES. [Cases: Corporations Cd370(1),385.]
ultra vires, adv.
ultra vires compromissi (al-trd VI-reez [also veer-eez]
kom-pr<l-mis-l). [Law Latin] Hist. Beyond the force of
the submission to arbitration; beyond the authority of
the submission. -An arbitration award, for example,
could be reduced ifthe award was greater than the sub
mission warranted. ultra vires inventarii (al-tra VI-reez [also veer-eez] in
ven-tair-ee-I). [Law Latin] Hist. Beyond the value ofthe
inventory. -An executor was not liable for the dece
dent's debts ultra vires inventarii.
ultroneous witness. See WITNESS.
umbrella insurance. See INSURANCE.
umbrella limited partnership. See PARTNERSHIP.
umbrella order. See BLANKET ORDER (1).
umbrella-partnership real-estate investment trust. See
REAL-ESTATE INVESTMENT TRUST.
umbrella policy. See INSURANCE POLICY.
umbrella protective order. See blanket protective order
under PROTECTIVE ORDER.
UMDA. abbr. UNIFORM MARRIAGE AND DIVORCE ACT.
umpirage (am-plr-ij). 1. The office or authority of an
umpire. 2. The decision (such as an arbitral award) of
an umpire.
umpire. (ISc) An impartial person appOinted to make an
award or a final decision, usu. when a matter has been
submitted to arbitrators who have failed to agree. -An
arbitral submission may provide for the appointment
ofan umpire. -Also termed (in Scots law) oversman.
[Cases: Alternative Dispute Resolution (:::::239.]
umpire, vb.
UMTA. abbr. URBAN MASS TRANSIT ADMINISTRATION.
un-,prefix. (bef. 12c) 1. Not <unassignable>. 2. Contrary
to; against <unconstitutional>.
U.N. abbr. UNITED NATIONS.
unaccrued, adj. Not due, as rent on a lease.
una cum. [Latin] Together with.
unalienable, adj. See INALIENABLE.
unanimous (yoo-nan-a-mas), adj. (17c) 1. Agreeing in
opinion; being in complete accord <the judges were
unanimous in their approval of the recommenda
tion>. 2. Arrived at by the consent ofall <a unanimous
verdict>. See unanimous consent under CONSENT (2);
unanimous vote under VOTE. Cf. without objection
under OBJECTION (3).
unanimous consent. See CONSENT (2).
unanimous-consent agenda. See consent calendar under
CALENDAR (4).
unanimous-consent agreement. Parliamentary law. An
agreement, negotiated between opposing sides debating
a motion, regarding the procedure under which the
assembly will consider the motion. -The unanimous
consent agreement is a common practice in the u.s.
Senate. Also termed time agreement. See unanimous
consent under CONSENT (2).
unanimous-consent calendar. See consent calendar
under CALENDAR (4).
un


CONSENT (2).
unanimous-consent calendar. See consent calendar
under CALENDAR (4).
unanimous vote. See VOTE (3).
unascertained duty. See DUTY (4).

1663
unauthorized, adj. (16c) Done without authority; specif.
(of a signature or indorsement), made without actual,
implied, or apparent authority. UCC  1-201(43). [Cases:
Principal and Agent (;::J 147-162.]
unauthorized completion. Commercial law. The act of
filling in missing information in a negotiable instru
ment either without any authority to do so or without
adequate authority. Unauthorized completion is
a personal defense, so it can be raised against any
later holder of the instrument who does not have the
rights of a holder in due course. See personal defense
under DEFENSE (4). [Cases: Bills and Notes (;::J60, 378,
452(1).]
nnauthorized indorsement. See INDORSEMENT.
unauthorized practice oflaw. See PRACTICE OF LAW.
unauthorized signature. See SIGNATURE.
unauthorized use of a vehicle. See JOYRIDING.
unavailability, fl. (1855) The status or condition of not
being available, as when a witness is exempted by court
order from testifying . Unavailability is recognized
under the Federal Rules of Evidence as an exemption
to the hearsay rule. Fed. R. Evid. 804. (Cases: Criminal
Law (;::J419(5); Evidence (,'::"::>317(17).]
una voce (yoo-nd voh-see). [Latin] With one voice; unan
imously; without dissent.
unavoidable accident. See ACCIDENT.
unavoidable-accident doctrine. (1961) Torts. The rule
holding no party liable for an accident that was not
foreseeable and that could not have been prevented by
the exercise of reasonable care . The modern trend is
for courts to ignore this doctrine and to rely instead on
the basic concepts of duty, negligence, and proximate
cause. Also termed inevitable-accident doctrine.
[Cases: Automobiles (;::J201(1O); Negligence e=-~440.]
unavoidable casualty. See unavoidable accident under
ACCIDENT.
unavoidable cause. See CAUSE (1).
unavoidable danger. See DANGER.
unbanked, adj. Lacking a formal relationship with a
bank or other financial institution . Unbanked con
sumers are the most frequent users of money services
businesses.
unborn beneficiary. See BENEFICIARY.
unborn child. See CHILD.
unborn-widow rule. (1957) The legal fiction, assumed
under the rule against perpetuities, that a beneficiary's
widow is not alive at the testator's death, and thus a suc
ceeding life estate to her voids any remainders because
the interest would not vest within the perpetuities
period. See RULE AGAINST PERPETUITIES.
unbroken, adj. (14c) Not interrupted; continuous
<unbroken possession by the adverse possessor>.
unbundling rules. Telecommunications. Regulations
passed by the Federal Communications Commission
to effectuate the local-competition requirements ofthe unconscionability
Telecommunications Act of 1996, which reqUires local
exchange carriers to provide access to elements oflocal
exchange networks on an unbundled (Le., separated)
basis. 47 USCA  251; 47 CPR pt. 51. See NETWORK
ELEMENT. [Cases: Telecommunications (~860.1
uncertain damages. See DAMAGES.
uncertificated security. See SECURITY.
uncertified security. See uncertificated security under
SECURITY.
uncia (;m-shee-d), n. [Latin]!. Roman law. One-twelfth
of the as (a pound or, by analogy, an estate or inheri
tance). The English word ounce is derived from this
term. Cf. AS; BES. 2. Hist. A measure ofland used in a
royal charter . The size of an uncia is unclear, but it
may have measured 1,200 square feet (i.e., 12 modii). 3.
Generally, the proportion of one-twelfth.
unciarius heres (;m-shee-air-ee-ds heer-eez). [Latin]
Roman law. An heir to one-twelfth of an estate or
inheritance.
uncitable. See NO:-.!CITABLE.
UNCITRAL Rules. The Arbitration Rules ofthe United
Nations Commission on International Trade Law,
applicable to all international commercial arbitrations
except as prohibited by the local law where the arbitra
tion takes place.
unclean bill oflading. See BILL OF LADING.
unclean-hands doctrine. See CLEAN-HANDS DOCTRI:sJE.
uncollected funds. A credit, such as an increase in the
balance of a checking or other deposit account in a
financial institution, given on the basis of a check or
other right to payment that has not yet been received
from the drawee or other payor. [Cases: Banks and
Banking 122, 133, 137.]
unconditional, adj. (l7c) Not limited by a condition;
not depending on an uncertain event or contingency;
absolute.
unconditional delivery. See DELIVERY.
unconditional discharge. See DISCHARGE (5).
unconditional heir. See HEIR.
unconditional pardon. See absolute pardon under
PARDON.
unconditional promise. See PROMISE.
unconditional release. See RELEASE.
unconscionability (dn-kon-sh<l-nd-bil-<l-tee). (l6c) 1.
Extreme unfairness . Unconscionability is normally
assessed by an objective standard: (1) one party's lack
of meaningful choice, and (2) contractual terms that
unreasonably favor the other party. 2. The principle
that a court may refuse to enforce a contract that is
unfair or oppressive because of procedural abuses
during contract formation or because of overreaching
contractual terms, esp. terms that are unreasonably
favorable to one party while precluding meaningful
choice for the other party . Because unconScionability
depends on circumstances at the time the contract is

1664 unconscionable
formed, a later rise in market price is irrelevant. [Cases:
Contracts
"Traditionally, a bargain was said to be unconscionable in
an action at law if it was 'such as no man in his senses and
not under delusion would make on the one hand, and as no
honest and fair man would accept on the other;' damages
were then limited to those to which the aggrieved party
was 'equitably' entitled. Even though a contract was fully
enforceable in an action for damages, equitable remedies
such as specific performance were refused where 'the sum
total of its provisions drives too hard a bargain for a court
of conscience to assist.' Modern procedural reforms have
blurred the distinction between remedies at law and in
equity. For contracts for the sale of goods, Uniform Com
mercial Code  2302 states the rule of this Section without
distinction between law and equity. Comment 1 to that
section adds, 'The principle is one of the prevention of
oppression and unfair surprise ... and not of disturbance
of allocation of risks because of superior bargaining
power.'" Restatement (Second) of Contracts  208 cmt. b
(1979) (citations omitted).
"Nowhere among the [Uniform Commerciall Code's many
definitions is there one of unconscionability. That the
term is incapable of precise definition is a source of both
strength and weakness." E. Allan Farnsworth, Contracts
 4.28, at 310 (3d ed. 1999)
procedural unconscionability. (1973) Unconscionabil
ity resulting from improprieties in contract formation
(such as oral misrepresentations or disparities in bar
gaining position) rather than from the terms of the
contract itself. [Cases: Contracts 1.]
"Most cases of unconscionability involve a combination
of procedural and substantive unconscionability, as it is
generally agreed that if more of one is present, then less
of the other is required." E. Allan Farnsworth, Contracts
 4.28, at 312 (3d ed. 1999).
substantive unconscionability. (1973) L'nconscio
nability resulting from actual contract terms that
are unduly harsh, commercially unreasonable, and
grossly unfair given the existing circumstances.
[Cases: Contracts
unconscionable (an-kon-shd-nd-bal), adj. (16c) 1. (Of
a person) having no conscience; unscrupulous <an
unconscionable used-car salesman>. 2. (Of an act or
transaction) showing no regard for conscience; affront
ing the sense ofjustice, decency, or reasonableness <the
contract is void as unconscionable>. Cf. CONSCIONABLE.
[Cases: Contracts 1.]
unconscionable agreement. See AGREEMENT.
unconscionable bargain. See unconscionable agreement
under AGREEMENT.
unconscionable contract. See unconscionable agreement
under AGREEMENT.
unconscious, adj. Without awareness; not conscious . A
person who commits a criminal act while unconscious
may be relieved from liability for the act.
unconsciousness defense. See AUTOMATISM.
unconstitutional, adj. (18c) Contrary to or in conflict
with a constitution, esp. the L'.S. Constitution <the
law is unconstitutional because it violates the First
Amendment's free-speech guarantee>. Cf. NONCON
STITUTIONAL. unconstitutional-conditions doctrine. Constitutional
law. 1. The rule that the government cannot condition a
person's receipt ofa governmental benefit on the waiver
ofa constitutionally protected right (esp. a right under
the First Amendment). -For example, a television
station that receives public funds cannot be forced to
refrain from endorsing political candidates. [Cases:
Constitutional Law G-' 1057.] 2. The rule that the gov
ernment cannot force a defendant to choose between
two constitutionally protected rights. Also termed
doctrine ofunconstitutional conditions.
unconstitutionally vague. See VAGUE.
uncontestable clause. See INCONTESTABILITY CLAUSE.
uncontested divorce. See DIVORCE.
uncontested hearing. See HEARING.
uncontrollable, ad;. Incapable of being controlled.
uncontrollable impulse. See IMPULSE.
uncontrolled-securities-offering distribution. See secu
rities-offering distribution (2) under DISTRIBGTION.
uncopyrightable, adj. (Of a work) ineligible for copy
right protection either because the work lacks origi
nality or because it is an idea, concept, process, or
other abstraction that is not included in one of the
eight covered classifications of copyrightable works.
17 USCA  101-106. [Cases: Copyrights and Intellec
tual Property (;:::::4.]
uncore prist (,m[g]-kor prist). [Law French "still ready")
Hist. A plea by which a party alleges readiness to payor
perform what is justly demanded.
"Yet sometimes, after tender and refusal of a debt, if the
creditor harasses his debtor with an action, it then becomes
necessary for the defendant to acknowledge the debt, and
plead the tender; adding, that ... he is still ready, uncore
prist, to discharge it ...." 3 William Blackstone, Commen
taries on the Laws of England 303 (1768).
uncorrectability defense. Patents. An affirmative defense
in an infringement suit, established by showing (1) that
a coinventor's name was omitted from a patent, and (2)
that the patent cannot be corrected because the named
coinventor acted with deceptive intent. [Cases: Patents
uncounseled, adj. Without the benefit or participation
of legal counsel <an uncounseled conviction> <an
uncounseled defendant>.
uncovered option. See naked option under OPTION.
UNCRC. abbr. UNITED NATIONS CONVENTION ON THE
RIGHTS OF THE CHILD.
unde nihil habet (an-dee nI-hil hay-bat). [Law Latin
"whereof she has nothing"] Hist. A writ of dower for a
widow where no dower had been assigned to her within
the time allowed by law. See WRIT OF DOWER. Cf. DE
DOTE UNDE NIL HABET.
undercapitalization. See CAPITALIZATION.
undercover agent. See AGENT.
undercurrent of surface stream. 'Vater that moves
slowly through the bed of a stream or the lands under

1665
or immediately adjacent to the stream . This water is
considered part ofthe surface stream. -Also termed
underflow ofsurface stream.
underdeveloped country. See DEVELOPING COUNTRY.
underflow ofsurface stream. See UNDERCURRENT OF
SURFACE STREAM.
underground economy. See SHADOW ECONOMY.
underground recording. See BOOTLEG RECORDING (1).
underinsurance. An agreement to indemnify against
property damage up to a certain amount but for less
than the property's full value.
underinsured-motorist coverage. Insurance that pays
for the insured's losses and injuries negligently caused
by a driver does not have enough liability insurance
to cover the damages. Cf. UNINSURED-MOTORIST
COVERAGE. [Cases: Insurance (;::::)2772,2787.]
underlease. See SUBLEASE.
underlessor. See SUBLESSOR.
under one's hand. (Of a person's signature) affixed
manually, as opposed to printed or stamped.
nnder protest. See PROTEST (3).
Undersecretary ofCommerce for Intellectual Property.
See DIRECTOR OF THE UNITED