Quistclose trust

noun

A trust created where a creditor has lent money to a debtor for a particular purpose. If the debtor uses the money for other purposes, it is held on trust for the creditor. Any inappropriately spent money can then be traced and returned to the creditor.

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Meanings

nounQuistclose trust (plural Quistclose trusts)

plural Quistclose trusts

  1. lawA trust created where a creditor has lent money to a debtor for a particular purpose. If the debtor uses the money for other purposes, it is held on trust for the creditor. Any inappropriately spent money can then be traced and returned to the creditor.

Origin

In reference to the 1968 case of Barclays Bank Ltd v Quistclose Investments Ltd.

Full word history & related roots →
Cite this entry
APA

Quistclose trust. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/Quistclose%20trust

MLA

“Quistclose trust.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Quistclose%20trust. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “Quistclose trust,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/Quistclose%20trust.

Source: Quistclose trust on Wiktionary, CC BY-SA 4.0.