Also known as:cestuis · cestui que trust · cestui que use · beneficiary
Written by attorneys · grounded in primary & secondary sources — see below
A person for whose benefit property is held by a trustee under a trust arrangement. The cestui holds an equitable interest while the trustee holds legal title. Recognition of the cestui's rights allows enforcement of the trust terms against the trustee and third parties.
Sources & Authorities
How it applies
Common Examples
6
Deed of Trust Beneficiary
Carmen Choi borrowed funds from Coastal Shipping and executed a deed of trust conveying title to a trustee. Coastal Shipping held the position of cestui entitled to the property's value upon default. When Carmen defaulted, the trustee could foreclose to satisfy the obligation owed to the cestui.
Contract Performance Benefit
Charles Cunningham created a trust naming Christine Castro as beneficiary of delivered goods. Christine became the cestui with rights to enforce trust performance. Recognition of her status allowed her to sue the trustee when delivery failed.
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Cases
Statutes
Uniform Acts
Model Codes
Common Law
Restatements
Casebooks
Dictionaries
Cade Carpenter created a trust granting access rights across land to benefit Caitlin Crowley's parcel. Caitlin changed position by building a driveway in reliance on the trust. As cestui she could enforce the right despite missing formalities because injustice would otherwise result.
Trust Modification Request
Cody Callahan created a trust leaving an outright remainder to his disabled niece. Unexpected medical costs threatened to exhaust the assets. The court converted the interest into a special needs trust to protect the cestui while advancing the settlor's purpose.
Trustee Breach Consent
Crystal Dynamics served as trustee for a trust benefiting Cypress Technologies. The cestui approved a risky investment that later lost value. Because the cestui had consented with full knowledge, the trustee avoided liability for the resulting breach.
Intended Contract Beneficiary
Christine Castro created a trust promising to pay a debt owed by Charles Cunningham to Coastal Shipping. The circumstances showed an intent to confer the benefit on the creditor. Coastal Shipping therefore qualified as cestui with a direct right to enforce the trust.
Common questions
Frequently Asked
3
How does a cestui enforce rights against a trustee?+
The cestui may bring an equitable action to compel the trustee to perform trust duties or to recover trust property wrongfully transferred. Courts recognize the cestui's equitable interest even though legal title rests with the trustee.
Supporting sources
Can a cestui's interest be reached by creditors?+
Absent a spendthrift provision, a court may authorize a creditor to attach present or future distributions to or for the benefit of the cestui. The attachment is limited to relief appropriate under the circumstances.
When may a court modify trust terms affecting a cestui?+
A court may modify administrative or dispositive provisions if circumstances not anticipated by the settlor make modification necessary to further the trust purposes. This power extends to converting an outright remainder into a special needs trust for a disabled cestui.
339 U.S. 306, 313-314 (1950)Civil Procedure
…in the common fund, but exclusive management and control is in the trust company as trustee, and neither a fiduciary nor any beneficiary of a participating trust is deemed to have ownership in any particular asset or investment of this common fund. The trust company must keep fund assets separate from its own, and in its…