Legal Definitions - cestui que vie

The term cestui que vie refers to the individual whose lifespan determines the duration of a legal interest or arrangement. This means that a particular right, estate, trust, or contract will remain in effect only for as long as this specific person is alive, even if they are not the direct beneficiary or owner of that interest.

Here are some examples to illustrate this concept:

• Example 1: Life Estate in Property

  Imagine a scenario where an elderly aunt, Martha, wants to ensure her beloved niece, Clara, has a place to live for a significant period. Martha grants her country cottage "to Clara for the life of Clara's younger sister, Lily."

  In this situation, Clara has the right to live in and use the cottage. However, her right to the cottage is not measured by her own life, but by Lily's life. If Lily passes away, Clara's right to the cottage ends, even if Clara is still alive. Here, Lily is the cestui que vie because her life measures the duration of Clara's interest in the property.

• Example 2: Trust for Education

  A wealthy philanthropist establishes a trust fund to pay for the college education of a promising student, Alex. The trust document specifies that funds will be disbursed to Alex for his educational expenses "until the philanthropist's youngest grandchild, Sophia, reaches the age of 25 or passes away, whichever comes first."

  Alex receives the benefit of the trust for his education. However, the trust's duration, and thus the period during which Alex can receive funds, is tied to Sophia's life and age. If Sophia were to pass away before turning 25, the trust would terminate. In this case, Sophia is the cestui que vie because her life (and age) dictates how long the trust will continue to provide for Alex's education.

• Example 3: Annuity Contract

  A parent purchases an annuity for their adult child, Michael, to provide him with a steady income. The annuity contract states that payments will be made to Michael every month "for as long as Michael's former college professor, Dr. Evans, is alive."

  Michael is the recipient of the monthly payments. However, the stream of income he receives is entirely dependent on Dr. Evans's continued life. If Dr. Evans passes away, the annuity payments to Michael cease, regardless of whether Michael is still alive. Therefore, Dr. Evans is the cestui que vie because his life measures the duration of the annuity payments to Michael.