Warning
Info
Warning
Info
Simple English definitions for legal terms
right of retainer
Read a random definition: long-term capital gain
A quick definition of right of retainer:
Right of Retainer: When someone is in charge of taking care of money or property for someone else, they have the power to keep some of that money or property if the person they are taking care of owes them money. This is called the right of retainer.
A more thorough explanation:
Definition: The right of retainer is a power given to a trustee to hold back trust funds or property from being distributed to the beneficiary when the beneficiary owes money to the trust.
Example: Let's say that John is the trustee of a trust fund set up for his sister, Jane. Jane owes the trust $10,000 in unpaid taxes. John can use his right of retainer to hold back $10,000 from Jane's distribution until she pays back the money she owes to the trust.
Explanation: This example illustrates how the right of retainer works in practice. The trustee has the power to withhold funds or property from the beneficiary until they fulfill their obligations to the trust. In this case, Jane owes money to the trust, so John can use his right of retainer to hold back the amount owed until Jane pays it back.