EDUCATION
WEALTH
MARKETS
SIMULATOR
YOUR MONEY
ADVISORS
ACADEMY
TRUST & ESTATE PLANNING
Cestui Que Vie
By JULIA KAGAN Updated February 15, 2022
Reviewed by EBONY HOWARD
What Is Cestui Que Vie?
Cestui que vie is French for "he who lives". It is a legal term for an individual who is the
beneficiary of a trust or an insurance policy, with rights to property and the income
and profits that the property provides. A cestui que trust is the person entitled to an
equitable, rather than legal, trust in the estate assets.
The concept is also used in modern life and health insurance policies, where cestui
que vie is an individual whose life measures the duration of the insurance contract. In
these contracts, cestui que vie is known as the policyholder, insured, or policy owner.
Thus, while the term refers to the beneficiary of a trust or estate, it often refers to the
insured and not the beneficiary of an insurance policy.
KEY TAKEAWAYS
In French, Cestui que vie means "he who lives."
The legal term describes the person who is the beneficiary and has rights to
property in an estate.
Cestui que vie is often used today in life and health insurance policies, where
instead of the beneficiary it refers to the insured.
How Cestui Que Vie Works
Cestui que vie as a legal concept dates to the medieval period, specifically England.
During this time, the owners of farms and other properties could be absent for
extended periods of time as they traveled, whether for business or religious purposes.
It became important to ensure that family members, business partners or tenants
could use the property without fear of it being expropriated by feudal lords. While the
individual was away, a trustee took care of the land but did not retain legal ownership
over the property. The trust often relied on a good faith understanding between the
parties.
In practice, it was often a way to avoid paying taxes by granting land and property to
the Church, which was exempt from taxation, while still allowing descendants to
reside in and enjoy the estates. Henry VIII, under his advisers Thomas Cromwell and
Thomas More, attempted to invalidate cestui que vie trusts, a process that continued
under the English Reformation.
1666
The year the British government enacted the Cestui Que Vie Act. [1]
Cestui Que Vie Is Now a Part of Modern Law
Later, however, after the Great Plague of 1665 and the Great Fire of 1666 had destroyed
London, the British government enacted the Cestui Que Vie Act in 1666, which
reinstated the legal concept. After those twin catastrophes, hundreds of thousands of
British citizens died or fled. In response, the government took all private property into
the trust until the proper heirs or owners could be identified—the cestui que vie. Some
parts of the 1666 Act are still the law in the United Kingdom. [1]
The legal concepts behind cestui que vie changed a bit over the centuries in order to
reduce fraud and to ensure that property owners couldn’t shift their property into
trusts in order to dodge creditors. More recently, laws against property held in
perpetuity required that parties named as the beneficiaries in a trust should vest, and
thus have an interest in the trust rather than passively receive benefits.
When a trust is created it is done for the benefit of a specific individual who is
identified in the trust document. In a trust, the cestui que trust is the person who has
an equitable interest in the trust. The legal title of the trust, however, is given to the
trustee. Cestui qui use, or he who uses, is the person for whose benefit the trust is
made. During the medieval period, cestui que use arrangements became so common
that they were often assumed to be present even when they had not been arranged.
ARTICLE SOURCES
Related Terms
What Is an Irrevocable Trust?
An irrevocable trust cannot be modified, amended or terminated without the permission of the
grantor's named beneficiary or beneficiaries. more
What and Who Is Next of Kin?
Next of kin is usually defined as a person's closest living blood relative, someone who may have
inheritance rights, and obligations. more
What Is a Fiduciary?
A fiduciary is a person or organization that acts on behalf of a person or persons and is legally
bound to act solely in their best interests. more
Partner Links
What Is Crummey Power?
Crummey power is a technique that enables a person to receive a gift that is ineligible for a gift-tax
exclusion and turn it into one that is eligible. more
What Is an Account in Trust?
An account in trust is a type of financial account opened by one person for the benefit of another.
more
Beneficiary of Trust
A beneficiary of trust is the individual or group of people chosen to benefit from trust assets and
the income they generate. more
Related Articles
TRUST & ESTATE PLANNING
Will vs. Trust: What’s the Difference?
LIFE INSURANCE
Do Beneficiaries Pay Taxes on Life
Insurance?
TRUST & ESTATE PLANNING
7 Reasons for an Irrevocable Life Insurance
Trust (ILIT)
TRUST & ESTATE PLANNING
A Quick Guide to High-Net-Worth Estate
Planning
ESTATE PLANNING
How to Set Up a Trust Fund
MARRIAGE & UNION
What LGBTQ+ marriage means for your
finances
TRUSTe
#
A
About Us
Terms of Use
Dictionary
Editorial Policy
Advertise
News
Privacy Policy
Contact Us
Careers
California Privacy Notice
B
C
D
E
F
G
H
I
J
Investopedia is part of the Dotdash publishing family.
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z