Business Trust Webinar


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
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