Glossary

Glossary

To help you better understand the content of this website

This glossary was created to help you better understand various terms used on this website.

Beneficial Interestpersonal property rights
Beneficiaryperson entitled to profits or proceeds from a trust
Beneficiary Agreementdescription of responsibilities or benefits
Blindwhen trustees manage assets without disclosure to the beneficiaries
Business Trustorganization engaged in a profit-seeking enterprise
By-Passthe A/B provision in a living trust to maximize unified lifetime credit
Calendar YearJanuary through December
Charitable Remainderfor retirement and estate planning
Chose in Actionright to go to law to obtain payment of money or damages
Common LawEnglish case law adopted by the US Constitution. Also called non-statutory law
Complex Trustwhen trustee distributes principal or capital gains to beneficiaries
Declaration of Trustwritten contract that binds grantor, trustee and beneficiary to each other
Demiseto grant a lease in property
Devisea gift made in a will
Directorperson that gives instructions to the trustee
Domicilewhere the trustee or beneficiary intends to legally reside with rights, duties and obligation
Escheatreversion of land to the state by someone without a will
Express Trusta written trust declaration
FideicommissaRoman law mechanism where testator charged an heir/trustee to act on behalf of a 3rd party
Fiduciarya relationship of trust between a trustee and beneficiary
Fiscal Yearcustom accounting year
Grant Deedinstrument that conveys real property title
Grantor Trustwhere all taxable items are recognized on the grantor’s personal tax return
Grantor/Settlor/Creatorperson that creates a trust
in Personamperson to fulfill their contractual obligation
in REMa real right to property or thing
Intestatedied without a will
Irrevocablewhen grantor is unable to cancel, revoke or amend the trust. Default with business and charitable trusts. Optional with realty and living trusts.
Land Trustholds real estate, mortgages, options, easements, etc.
Liena right to retain possession pending satisfaction of an obligation, often debt
Living Trustalso known as inter-vivos (latin “between the living”) to avoid probate and distribute a personal estate
Non Grantor Trustwhere the trust itself is a taxpayer with an EIN and files form 1041. Net income usually distributed to beneficiaries
Pensionholds salary and wage contributions for investment and protection
Personal Propertyany property other than real estate
Qualified Sub Sliving trust holds stock of an S corporation for a single beneficiary
Remainderresidual interest reserved for someone when another person’s estate ends
Reversiona remainder interest created automatically by law
Revocablewhereby grantor can cancel, revoke or amend the trust
Shared Equitysubstitute for lease option to divide income/profits
Simple Trustwhere trustee must distribute current income to beneficiaries
Statutory Lawset forth and authorized by specific state law. Always applicable to corporations and LLCs
Successor Beneficiaryreplaces a beneficiary
Successor Trusteereplaces a trustee
Title Holdingfor pending real estate transactions
Trust Fundinvestments providing an income to beneficiaries
Trusteeholds legal and sometimes equitable title to an asset as fiduciary for a beneficiary
Trustee Agreementpowers authorized for a trustee to act
UCCuniform commercial code for securing personal property
Wardshiplucrative right to act as guardian for a minor upon the death of the father
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