Trust Estate Definition Clause
(CA)

Summary

The following template is a trust clause for use in the state of California that defines "trust estate" as “all property subject to the trust instrument from time to time," and “such property shall be held, administered and distributed as provided in the instrument.” This template includes practical guidance and drafting notes. The "trust property" is the subject matter of the trust, while the “estate” is created upon the death of the trustor. The “trust estate” is the property or assets managed by an appointed trustee and held for the benefit of designated beneficiaries. Under the California Trust Law (see Cal. Prob. Code § 15000 et seq.), a trust is created only if there is trust property (see Cal. Prob. Code § 15202). Property subject to a trust has traditionally been referred to as the trust "res" or "corpus." See Black's Law Dictionary (7th ed. 1999) at 345. The words " trust property" are more commonly used in modern statutes (see Cal. Prob. Code § 15202), although the words " trust assets" and " trust estate" are also frequently used. The naming convention in the document should be used consistently throughout the document. For more information about drafting trusts and trust clauses, see Characteristics and Uses of Trusts (CA), Requirements and Restrictions on Trust Purposes and Administration (CA), and Revocation, Amendment, and Termination of Trusts (CA).