This glossary was created to help you better understand various terms used 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 |
| Equitable Ownership | ownership rights protected in equity |
| 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 |
| Property | unrestricted and exclusively belongs to one |
| 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 |