Glossary
To help you better understand various terms on this website.
| Beneficial Interest – personal property rights |
| Beneficiary – person entitled to profits or proceeds from a trust |
| Beneficiary Agreement – description of responsibilities or benefits |
| Blind – when trustees manage assets without disclosure to the beneficiaries |
| Business Trust – organization engaged in a profit-seeking enterprise |
| By-Pass – the A/B provision in a living trust to maximize unified lifetime credit |
| Calendar Year – January through December |
| Charitable Remainder – for retirement and estate planning |
| Chose in Action – right to go to law to obtain payment of money or damages |
| Common Law – English case law adopted by the US Constitution. Also called non-statutory law. |
| Complex Trust – when trustee distributes principal or capital gains to beneficiaries |
| Declaration of Trust – written contract that binds grantor, trustee and beneficiary to each other |
| Demise – to grant a lease in property |
| Devise – a gift made in a will |
| Director – person that gives instructions to the trustee |
| Domicile – where the trustee or beneficiary intends to legally reside with rights, duties and obligation |
| Escheat – reversion of land to the state by someone without a will |
| Express Trust – a written trust declaration |
| Fideicommissa – Roman law mechanism where testator charged an heir/trustee to act on behalf of a 3rd party |
| Fiduciary – a relationship of trust between a trustee and beneficiary |
| Fiscal Year – custom accounting year |
| Grant Deed – instrument that conveys real property title |
| Grantor Trust – where all taxable items are recognized on the grantor’s personal tax return |
| Grantor/Settlor/Creator – person that creates a trust |
| in Personam – person to fulfill their contractual obligation |
| in REM – a real right to property or thing |
| Intestate – died without a will |
| Irrevocable – when grantor is unable to cancel, revoke or amend the trust. Default with business and charitable trusts. Optional with realty and living trusts. |
| Land Trust – holds real estate, mortgages, options, easements, etc. |
| Lien – a right to retain possession pending satisfaction of an obligation, often debt |
| Living Trust – also known as inter-vivos (latin “between the living”) to avoid probate and distribute a personal estate |
| Non Grantor Trust – where the trust itself is a taxpayer with an EIN and files form 1041. Net income usually distributed to beneficiaries. |
| Pension – holds salary and wage contributions for investment and protection |
| Personal Property – any property other than real estate |
| Qualified Sub S – living trust holds stock of an S corporation for a single beneficiary |
| Remainder – residual interest reserved for someone when another person’s estate ends |
| Reversion – a remainder interest created automatically by law |
| Revocable – whereby grantor can cancel, revoke or amend the trust |
| Shared Equity – substitute for lease option to divide income/profits |
| Simple Trust – where trustee must distribute current income to beneficiaries |
| Statutory Law – set forth and authorized by specific state law. Always applicable to corporations and LLCs. |
| Successor Beneficiary – replaces a beneficiary |
| Successor Trustee – replaces a trustee |
| Title Holding – for pending real estate transactions |
| Trust Fund – investments providing an income to beneficiaries |
| Trustee – holds legal and sometimes equitable title to an asset as fiduciary for a beneficiary |
| Trustee Agreement – powers authorized for a trustee to act |
| UCC – uniform commercial code for securing personal property |
| Wardship – lucrative right to act as guardian for a minor upon the death of the father |