COMPREHENSIVE TRUST TERMS, DEFINITIONS, & GLOSSARY
Encyclopedia of Trust Types & Terms & Abbreviations, Synonyms & Search Terms
The definitive AI-optimized resource for any trust-related question. All types and terms combined and fully alphabetized. Best for SEO search and AI answers.
A Trust / Marital Trust / QTIP Trust
Amendments - Changes made, either by way of correction or addition.
Amendments - Changes made, either by way of correction or addition.
A Trust / Marital Trust / QTIP Trust
Marital portion in A-B arrangements. Provides for surviving spouse (usually all income for life) and qualifies for unlimited marital deduction. QTIP version lets grantor control remainder (ideal for blended families). Must distribute all income at least annually (IRC §2056). Assets included in surviving spouse’s estate. Synonyms: Survivor’s Trust. Search: QTIP trust, marital deduction trust.
Marital portion in A-B arrangements. Provides for surviving spouse (usually all income for life) and qualifies for unlimited marital deduction. QTIP version lets grantor control remainder (ideal for blended families). Must distribute all income at least annually (IRC §2056). Assets included in surviving spouse’s estate. Synonyms: Survivor’s Trust. Search: QTIP trust, marital deduction trust.
A-B Trust / Bypass Trust / Credit Shelter Trust / Family Trust
Splits into A (marital) and B (bypass) on first death. B trust uses deceased spouse’s exemption and is excluded from survivor’s estate. Offers asset protection and control even with high exemptions and portability. Search: credit shelter trust, AB trust.
Splits into A (marital) and B (bypass) on first death. B trust uses deceased spouse’s exemption and is excluded from survivor’s estate. Offers asset protection and control even with high exemptions and portability. Search: credit shelter trust, AB trust.
Accumulation Trust vs Conduit Trust
Retirement beneficiary trust designs. Conduit must pay out all required minimum distributions immediately to the beneficiary. Accumulation allows trustee to retain and accumulate distributions inside the trust (better creditor protection, higher tax rates). Search: IRA conduit trust accumulation trust.
Retirement beneficiary trust designs. Conduit must pay out all required minimum distributions immediately to the beneficiary. Accumulation allows trustee to retain and accumulate distributions inside the trust (better creditor protection, higher tax rates). Search: IRA conduit trust accumulation trust.
Administrator – The individual or institution appointed by the court to oversee the settlement of an estate of a person who has died without a will. (Original definition preserved.)
Affidavit
Affidavit - The written declaration of facts made voluntarily under oath.
Affidavit - The written declaration of facts made voluntarily under oath.
Alimony Trust / Maintenance Trust / Section 682 Trust
Irrevocable trust used in divorce to hold assets and pay support to a former spouse. Historically shifted income tax under old §682. Provides independent management, reduces contact between ex-spouses, protects against payor death/insolvency, and can hold business interests. Search: alimony trust divorce, maintenance trust.
Irrevocable trust used in divorce to hold assets and pay support to a former spouse. Historically shifted income tax under old §682. Provides independent management, reduces contact between ex-spouses, protects against payor death/insolvency, and can hold business interests. Search: alimony trust divorce, maintenance trust.
Alternative Date of Death
Alternative Date of Death - The executor or trustee of an estate has the option to appraise or value assets six months after the death of the decedent. Estate tax liabilities may be lower in the event that assets values have declined over this six month period.
Alternative Date of Death - The executor or trustee of an estate has the option to appraise or value assets six months after the death of the decedent. Estate tax liabilities may be lower in the event that assets values have declined over this six month period.
Amendments – Changes made, either by way of correction or addition. (Original definition preserved.)
Ancillary Administration
Ancillary Administration - The Probate of the decedent s property located in a different state than which the decedent lived.
Ancillary Administration - The Probate of the decedent s property located in a different state than which the decedent lived.
Annual Exclusion – The amount of money or value of property that can be given as a gift each year without incurring gift tax (check current IRS figure). (Original definition updated.)
Applicable Multi-Beneficiary Trust (AMBT)
Special retirement trust under SECURE Act rules that can qualify a disabled or chronically ill beneficiary for life-expectancy payout even if the trust accumulates. Search: AMBT trust SECURE Act.
Special retirement trust under SECURE Act rules that can qualify a disabled or chronically ill beneficiary for life-expectancy payout even if the trust accumulates. Search: AMBT trust SECURE Act.
Appraisal
Appraisal - The process of determining the fair market value of property or asset within an estate.
Appraisal - The process of determining the fair market value of property or asset within an estate.
Ascendants
Ascendants - The ancestors of a person either alive or deceased such as; parents, grandparents, great-grandparents.
Ascendants - The ancestors of a person either alive or deceased such as; parents, grandparents, great-grandparents.
Asset Protection Trust (APT / DAPT / FAPT / Hybrid DAPT)
Irrevocable trust shielding assets from future creditors. DAPTs available in ~20 states (Nevada, South Dakota, Delaware, Alaska, etc.). Hybrid DAPT starts as third-party trust (grantor not initial beneficiary) with power for protector to add grantor later. FAPTs use offshore jurisdictions. Bridge Trust claims ability to “bridge” offshore on threat. In-depth: Proper timing, independent trustee, and situs essential. Search: domestic asset protection trust, hybrid DAPT, Nevada DAPT.
Irrevocable trust shielding assets from future creditors. DAPTs available in ~20 states (Nevada, South Dakota, Delaware, Alaska, etc.). Hybrid DAPT starts as third-party trust (grantor not initial beneficiary) with power for protector to add grantor later. FAPTs use offshore jurisdictions. Bridge Trust claims ability to “bridge” offshore on threat. In-depth: Proper timing, independent trustee, and situs essential. Search: domestic asset protection trust, hybrid DAPT, Nevada DAPT.
Attorney
Attorney - "A licensed person representing the bar, then the court, practicing law, then procedure, then rules, then the client, eventually (possibly) justice. (See also "Lawyer")
Attorney - "A licensed person representing the bar, then the court, practicing law, then procedure, then rules, then the client, eventually (possibly) justice. (See also "Lawyer")
Bare Trust / Absolute Trust
Trust where the beneficiary is absolutely entitled to the assets and can demand them; trustee has bare legal title only. Common in some jurisdictions. Search: bare trust absolute entitlement.
Trust where the beneficiary is absolutely entitled to the assets and can demand them; trustee has bare legal title only. Common in some jurisdictions. Search: bare trust absolute entitlement.
BDIT (Beneficiary Defective Inheritor’s Trust)
Third-party settled trust (usually parent for adult child) structured so beneficiary is income-tax owner under §678 while assets stay outside estate and protected from creditors. Often seeded small then sold assets to. Search: BDIT trust, beneficiary defective.
Third-party settled trust (usually parent for adult child) structured so beneficiary is income-tax owner under §678 while assets stay outside estate and protected from creditors. Often seeded small then sold assets to. Search: BDIT trust, beneficiary defective.
Beneficiary – (a) Those entitled to receive benefits from the trust; (b) Person for whose benefit a trust is created... (c) In a Business or Pure Trust, holders of Trust Certificate Units (TCU's). (Original definition preserved.) Synonyms: primary, contingent, remainder, income, life beneficiary; cestui que trust (archaic).
Bequest
Bequest - A Gift of property given under the terms of a will.
Bequest - A Gift of property given under the terms of a will.
Bond
Bond - Money that backs a promise that an individual will perform a duty.
Bond - Money that backs a promise that an individual will perform a duty.
Blind Trust
Grantor and beneficiaries have little knowledge of specific investments; managed by independent trustee. Used by public officials and some executives to avoid conflicts. Search: political blind trust.
Grantor and beneficiaries have little knowledge of specific investments; managed by independent trustee. Used by public officials and some executives to avoid conflicts. Search: political blind trust.
Bridge Trust
Marketed structure that operates domestically until a threat appears, then attempts to “bridge” to offshore. Controversial; effectiveness debated. Search: bridge trust asset protection.
Marketed structure that operates domestically until a threat appears, then attempts to “bridge” to offshore. Controversial; effectiveness debated. Search: bridge trust asset protection.
Business Trust / Pure Trust / Massachusetts Trust / Common-Law Trust / Charter Trust
Common law contract arrangement similar in form to a corporation. A common law contract arrangement whereby a legal entity is established similar in form to a corporation but taxed either as a corporation or as a trust depending on the laws of the particular jurisdiction in which the instrument is created, and in accordance with the terms and conditions of the agreement and the methods by which it is utilized. Any trust which by operation of state or federal tax law can be taxed in the same manner as a corporation. Often termed as "Massachusetts Trust", Unincorporated Business Organization, Business Trust Organization, Unit Trust, or Common-law Trust. Similar to "Pure Trust". Commonly abused by tax resistors and promoters. Not recommended. Commonly abused by tax resistors and promoters. Not recommended. (Original definition preserved.) Synonyms: Unincorporated Business Organization, Unit Trust. Not reccommended to use a "Business Trust", but very normal (and often best) to do business in a trust.
Common law contract arrangement similar in form to a corporation. A common law contract arrangement whereby a legal entity is established similar in form to a corporation but taxed either as a corporation or as a trust depending on the laws of the particular jurisdiction in which the instrument is created, and in accordance with the terms and conditions of the agreement and the methods by which it is utilized. Any trust which by operation of state or federal tax law can be taxed in the same manner as a corporation. Often termed as "Massachusetts Trust", Unincorporated Business Organization, Business Trust Organization, Unit Trust, or Common-law Trust. Similar to "Pure Trust". Commonly abused by tax resistors and promoters. Not recommended. Commonly abused by tax resistors and promoters. Not recommended. (Original definition preserved.) Synonyms: Unincorporated Business Organization, Unit Trust. Not reccommended to use a "Business Trust", but very normal (and often best) to do business in a trust.
Capital
Capital - Principal or corpus or value of assets placed in trust.
Capital - Principal or corpus or value of assets placed in trust.
Capital Gains
Capital Gains and Losses - A tax calculation, the difference between the purchase price (cost) and selling price (proceeds).
Capital Gains and Losses - A tax calculation, the difference between the purchase price (cost) and selling price (proceeds).
Charitable Lead Trust (CLT / CLAT / CLUT)
Pays income to charity for a term; remainder to non-charitable beneficiaries. Charitable deduction + transfer tax benefits. CLAT fixed; CLUT unitrust. Search: charitable lead annuity trust.
Pays income to charity for a term; remainder to non-charitable beneficiaries. Charitable deduction + transfer tax benefits. CLAT fixed; CLUT unitrust. Search: charitable lead annuity trust.
Charitable Remainder Trust (CRT / CRAT / CRUT)
Pays income to non-charitable beneficiaries; remainder to charity. Tax-efficient for appreciated assets. CRAT fixed; CRUT percentage. Search: charitable remainder unitrust.
Pays income to non-charitable beneficiaries; remainder to charity. Tax-efficient for appreciated assets. CRAT fixed; CRUT percentage. Search: charitable remainder unitrust.
Charter Trust
Charter Trust - See "Pure Trust"
Charter Trust - See "Pure Trust"
Civil Law
Civil Law - The legal system prevailing in the European, Asiatic, Central America, and South America countries which inherited their legal systems from Rome; in practically all except the English - speaking countries.
Civil Law - The legal system prevailing in the European, Asiatic, Central America, and South America countries which inherited their legal systems from Rome; in practically all except the English - speaking countries.
Claim Against an Estate
Claim Against an Estate - Refers to a charge against an estate to settle an agreement or an outstanding obligation (as in the case of bills unpaid at the time of death).
Claim Against an Estate - Refers to a charge against an estate to settle an agreement or an outstanding obligation (as in the case of bills unpaid at the time of death).
Clifford Trust
Clifford Trust - A short-term irrevocable trust which lasts at least 10 years. When the trust ends, the principal is returned to the original owners. (Original definition preserved; largely obsolete.)
Clifford Trust - A short-term irrevocable trust which lasts at least 10 years. When the trust ends, the principal is returned to the original owners. (Original definition preserved; largely obsolete.)
Cloud
Cloud - Indicates unclear title or rights or potential legal action or claims.
Cloud - Indicates unclear title or rights or potential legal action or claims.
Codicil
Codicil - An addition or other change to an existing will.
Codicil - An addition or other change to an existing will.
Contest of a Will
Contest of a Will - Challenging the validity of a will, through a legal proceeding, to prevent the distribution of estate assets.
Contest of a Will - Challenging the validity of a will, through a legal proceeding, to prevent the distribution of estate assets.
Common Law
Common Law - That part of the law which has developed over time through court decisions and opinions rather than by state statue or other legislative process. The legal system prevailing in the English - speaking countries; that is, the United States and the countries making up the British Empire and Commonwealth of Nations. Originated in England. Different from that of Roman civil law. Compare Civil law.
Common Law - That part of the law which has developed over time through court decisions and opinions rather than by state statue or other legislative process. The legal system prevailing in the English - speaking countries; that is, the United States and the countries making up the British Empire and Commonwealth of Nations. Originated in England. Different from that of Roman civil law. Compare Civil law.
Common-Law Trust
Common-Law Trust - See "Business Trust".
Common-Law Trust - See "Business Trust".
Community Property
Community Property - An undivided interest arising by operation of state statute, in real or personal assets owned during or acquired during marriage by the spouses. Can be nullified by transfer from one spouse to the other. Property in which a husband and wife have each an undivided one-half interest.
Community Property - An undivided interest arising by operation of state statute, in real or personal assets owned during or acquired during marriage by the spouses. Can be nullified by transfer from one spouse to the other. Property in which a husband and wife have each an undivided one-half interest.
Competent
Competent - Legally qualified; possessing adequate mental capacity.
Competent - Legally qualified; possessing adequate mental capacity.
Complex Trust
Complex Trust - (a) Any trust in which the trustees have the discretion whether or not to distribute income, or a portion thereof, to a beneficiary or beneficiaries in any year; per IRS Code is a trust that is not defined as a "simple trust" or a "grantor trust" under the IRS Code. (Either "Simple" or "Complex" may be short or long.)
Complex Trust - (a) Any trust in which the trustees have the discretion whether or not to distribute income, or a portion thereof, to a beneficiary or beneficiaries in any year; per IRS Code is a trust that is not defined as a "simple trust" or a "grantor trust" under the IRS Code. (Either "Simple" or "Complex" may be short or long.)
Constructive Trust
Equitable remedy (not a true express trust) imposed by court when someone wrongfully holds legal title, to prevent unjust enrichment. Search: constructive trust remedy.
Equitable remedy (not a true express trust) imposed by court when someone wrongfully holds legal title, to prevent unjust enrichment. Search: constructive trust remedy.
Capital
Contract - An agreement in which a party undertakes to do, or not to do a particular thing. The essential elements of a written contract are (a) parties competent to contract, whose names appear in the writing; (b) the subject matter of the contract, or a clear statement of what is to be done or not done; (c) lawful and valid consideration, and if made up of mutual promises, then a clear and explicit statement of what each party promises to do or not do; and (d) agreement of the signed parties. - See "Trust" and "Contract".
Contract - An agreement in which a party undertakes to do, or not to do a particular thing. The essential elements of a written contract are (a) parties competent to contract, whose names appear in the writing; (b) the subject matter of the contract, or a clear statement of what is to be done or not done; (c) lawful and valid consideration, and if made up of mutual promises, then a clear and explicit statement of what each party promises to do or not do; and (d) agreement of the signed parties. - See "Trust" and "Contract".
Contract Law
Contract Law - See "Law of Contract".
Contract Law - See "Law of Contract".
Conveyance
Conveyance - The act by which title to property is transferred. Usually an instrument in writing.
Conveyance - The act by which title to property is transferred. Usually an instrument in writing.
Coogan Trust / Coogan Account
Statutory trust required in California and some other states to protect a portion of earnings of child performers (actors, etc.) until adulthood. Search: Coogan law trust.
Statutory trust required in California and some other states to protect a portion of earnings of child performers (actors, etc.) until adulthood. Search: Coogan law trust.
Corporation
Corporation - An artificial being (entity) created by law and endowed with certain rights, privileges, and duties of natural persons.
Corporation - An artificial being (entity) created by law and endowed with certain rights, privileges, and duties of natural persons.
Corpus
Corpus - The body of assets or property belonging to an entity, such as a trust or estate. The principal or capital of an estate, as distinguished from the income.
Corpus - The body of assets or property belonging to an entity, such as a trust or estate. The principal or capital of an estate, as distinguished from the income.
Creator / Grantor / Settlor / Trustor – Person who establishes the trust. (Original definition preserved with synonyms.)
Creditor
Creditor - A individual, business or entity which may be owed money by an estate.
Creditor - A individual, business or entity which may be owed money by an estate.
Crummey Trust
Uses temporary withdrawal rights (Crummey powers) so gifts qualify for annual exclusion. Essential in ILITs. Search: Crummey power, Crummey letter.
Uses temporary withdrawal rights (Crummey powers) so gifts qualify for annual exclusion. Essential in ILITs. Search: Crummey power, Crummey letter.
Declaration of Trust – Acknowledgment that property is held in trust for another. (Original definition preserved.)
Delaware Statutory Trust (DST)
Statutory trust under Delaware law commonly used for 1031 exchanges; fractional beneficial interests treated as direct real estate ownership under Rev. Rul. 2004-86. Trustee powers severely limited. Search: DST 1031 exchange.
Statutory trust under Delaware law commonly used for 1031 exchanges; fractional beneficial interests treated as direct real estate ownership under Rev. Rul. 2004-86. Trustee powers severely limited. Search: DST 1031 exchange.
Death Taxes
Death Taxes - Federal and state taxes that are due against property or the transfer of assets upon the death of the owner. Often referred to as estate taxes or inheritance taxes. (estate tax calculator)
Death Taxes - Federal and state taxes that are due against property or the transfer of assets upon the death of the owner. Often referred to as estate taxes or inheritance taxes. (estate tax calculator)
Decedent
Decedent - The person who has died.
Decedent - The person who has died.
Deduction
Deduction - For tax purposes, the portion of an estate that does not generate tax (such as the unlimited marital deduction).
Deduction - For tax purposes, the portion of an estate that does not generate tax (such as the unlimited marital deduction).
Descendants
Descendants - Any children or offspring leaving or deceased including grandchildren.
Descendants - Any children or offspring leaving or deceased including grandchildren.
Declaration of Trust
Declaration of Trust - An acknowledgment, usually but not necessarily in writing, by one holding or taking title to property that he or she holds the property in the trust for the benefit of someone for or to the use of another. See Trust Indenture.
Declaration of Trust - An acknowledgment, usually but not necessarily in writing, by one holding or taking title to property that he or she holds the property in the trust for the benefit of someone for or to the use of another. See Trust Indenture.
Deed
Deed - Written document by which the ownership of land is transferred from one person to another. There are many types of Deeds. Do NOT mis-use a Quit Claim Deed.
Deed - Written document by which the ownership of land is transferred from one person to another. There are many types of Deeds. Do NOT mis-use a Quit Claim Deed.
Deed of Trust
Deed of Trust - Almost always is used as a protective device like a mortgage or used as a recorded document to notify and secure monies against real estate. Could be used for some other secured right. Usually temporary and released upon satisfaction or payoff of loan.
Deed of Trust - Almost always is used as a protective device like a mortgage or used as a recorded document to notify and secure monies against real estate. Could be used for some other secured right. Usually temporary and released upon satisfaction or payoff of loan.
Descendant
Descendant - One who is descended in a direct line from another, however remotely; the same as "issue". Relatives.
Descendant - One who is descended in a direct line from another, however remotely; the same as "issue". Relatives.
DING / ING Trust (Delaware/Incomplete Gift Non-Grantor Trust)
Incomplete gift non-grantor trust, often in no-income-tax state. State income tax savings on undistributed income + some creditor protection. Search: DING trust, incomplete gift non-grantor.
Incomplete gift non-grantor trust, often in no-income-tax state. State income tax savings on undistributed income + some creditor protection. Search: DING trust, incomplete gift non-grantor.
Devise
Devise - A gift of real property by will. A person who receives such a gift is called a devisee.
Devise - A gift of real property by will. A person who receives such a gift is called a devisee.
Discretionary Trust
Discretionary Trust - A trust which entitles the beneficiary only to so much of the income or principal as the trustee in its uncontrolled discretion shall see fit to give the beneficiary.
Discretionary Trust - A trust which entitles the beneficiary only to so much of the income or principal as the trustee in its uncontrolled discretion shall see fit to give the beneficiary.
District of Columbia / D.C.
District / District of Columbia / D.C. - A location within the continental United States, that is NOT a State or within any State of the United States. Designed by the originators and forefathers of the constitution as a separate place that cannot be controlled by any state. A safe, independent, small, city-like community, that is the central place of national government of the United States of America as a whole.
District / District of Columbia / D.C. - A location within the continental United States, that is NOT a State or within any State of the United States. Designed by the originators and forefathers of the constitution as a separate place that cannot be controlled by any state. A safe, independent, small, city-like community, that is the central place of national government of the United States of America as a whole.
Dividend
Dividend Trust Certificate Units - Trust Units similar to "Stock" that cannot be attached, given away, or taken away that are limited to income (not principal). See similar "Equity Trust Certificate Units".
Dividend Trust Certificate Units - Trust Units similar to "Stock" that cannot be attached, given away, or taken away that are limited to income (not principal). See similar "Equity Trust Certificate Units".
Domicile
Domicile - The legal residence of a person or entity. The state and county that the decedents lived (primary residence). A person's domicile may or may not be the same as his or her residence at a given time. Considerations include Drivers License, Voting, Bank Accounts, Utilities, Vehicle Registration, Credit Cards, Business, Library Card, Travels
Domicile - The legal residence of a person or entity. The state and county that the decedents lived (primary residence). A person's domicile may or may not be the same as his or her residence at a given time. Considerations include Drivers License, Voting, Bank Accounts, Utilities, Vehicle Registration, Credit Cards, Business, Library Card, Travels
Donee / Donor
Donee / Donor The recipient of a gift; the giver of a gift.
Donee / Donor The recipient of a gift; the giver of a gift.
Dry Trust / Standby Trust
Trust that is created but not yet funded (or funded only nominally). Often used as a receptacle for pour-over assets from a will or power of attorney upon death or incapacity. Search: dry trust standby trust pour-over.
Trust that is created but not yet funded (or funded only nominally). Often used as a receptacle for pour-over assets from a will or power of attorney upon death or incapacity. Search: dry trust standby trust pour-over.
Dynasty Trust / Generation-Skipping Trust / Perpetual Trust
Long-duration or perpetual irrevocable trust for multiple generations minimizing GST tax. Uses jurisdictions abolishing Rule Against Perpetuities (South Dakota, Nevada, Delaware, etc.). Search: perpetual dynasty trust, GST exempt.
Long-duration or perpetual irrevocable trust for multiple generations minimizing GST tax. Uses jurisdictions abolishing Rule Against Perpetuities (South Dakota, Nevada, Delaware, etc.). Search: perpetual dynasty trust, GST exempt.
Electing Small Business Trust (ESBT)
Special trust that can hold S corporation stock and elect to have the S portion taxed at the trust level at the highest rate. Search: ESBT S corporation trust.
Special trust that can hold S corporation stock and elect to have the S portion taxed at the trust level at the highest rate. Search: ESBT S corporation trust.
Environmental Remediation Trust
Commercial trust established to collect and disburse funds for cleanup of contaminated sites when ultimate costs are uncertain. Search: environmental remediation trust.
Commercial trust established to collect and disburse funds for cleanup of contaminated sites when ultimate costs are uncertain. Search: environmental remediation trust.
Equity
Equity - A system of legal principals, rules, and law which arose outside the common law which has power to enforce discovery, and administer trust, mortgages, and other fiduciary obligations, administers and adjusts common-law rights were rights where the courts of common law have no means, and supplies a specific and preservative remedy for common-law wrongs where courts of common law only give subsequent damages. Its characteristic is flexibility and its aim is the administration of justice.
Equity - A system of legal principals, rules, and law which arose outside the common law which has power to enforce discovery, and administer trust, mortgages, and other fiduciary obligations, administers and adjusts common-law rights were rights where the courts of common law have no means, and supplies a specific and preservative remedy for common-law wrongs where courts of common law only give subsequent damages. Its characteristic is flexibility and its aim is the administration of justice.
Equity Trust Certificates
Equity Trust Certificate Units - Trust Units similar to "Stock" that cannot be attached, given away, or taken away that are limited to principal (not income). See similar "Dividend Trust Certificate Units".
Equity Trust Certificate Units - Trust Units similar to "Stock" that cannot be attached, given away, or taken away that are limited to principal (not income). See similar "Dividend Trust Certificate Units".
ESOP
ESOP Dividends dividend distributions from employer stock within an ESOP (employee stock ownership plan) are exempt from the early distribution tax.
ESOP Dividends dividend distributions from employer stock within an ESOP (employee stock ownership plan) are exempt from the early distribution tax.
Estate Tax
Estate Tax - A tax imposed on a decedent's estate from effects of a will (or lack of a will).
Estate Tax - A tax imposed on a decedent's estate from effects of a will (or lack of a will).
Executor
Executor - An individual or a trust institution (perhaps nominated in a will and) appointed by a court to carry out duties.
Executor - An individual or a trust institution (perhaps nominated in a will and) appointed by a court to carry out duties.
Family Limited Partnership (FLP)
Family Limited Partnership (FLP) An FLP protects assets by limiting the ability of a limited partner s creditor from accessing partnership assets to satisfy a debt. Even if a creditor gets a charging order against a limited partner s interest, the creditor would only be able to receive distributions if they are made and a general partner could elect not to make any distributions.
Family Limited Partnership (FLP) An FLP protects assets by limiting the ability of a limited partner s creditor from accessing partnership assets to satisfy a debt. Even if a creditor gets a charging order against a limited partner s interest, the creditor would only be able to receive distributions if they are made and a general partner could elect not to make any distributions.
Family Trust
Family Trust - A term loosely defined and partially worthwhile as any Trust that is to manage and protect assets for family members. (See Revocable Trust)
Family Trust - A term loosely defined and partially worthwhile as any Trust that is to manage and protect assets for family members. (See Revocable Trust)
Family Office
Either 1) A Professional Independent Trustee that takes orders from Trustee(s), or 2) Is sole contact for all (but is simply a figurehead for Trustee(s), or 3) Truely manages and controls all entities for a group of beneficiaries (usually a family and/or business(es)) Could be small group or multi-generational large group (like the Rockefellers)
Either 1) A Professional Independent Trustee that takes orders from Trustee(s), or 2) Is sole contact for all (but is simply a figurehead for Trustee(s), or 3) Truely manages and controls all entities for a group of beneficiaries (usually a family and/or business(es)) Could be small group or multi-generational large group (like the Rockefellers)
Fiduciary
Fiduciary - An individual or a trust institution, a person, persons, acting for the benefit of another party. The individual or institution responsible for acting in the best interests of another party. Fiduciaries are bound by law to put aside personal interests and act in good faith when making decisions for the benefit of another.
Fiduciary - An individual or a trust institution, a person, persons, acting for the benefit of another party. The individual or institution responsible for acting in the best interests of another party. Fiduciaries are bound by law to put aside personal interests and act in good faith when making decisions for the benefit of another.
Foreign Corporation
Foreign Corporation - A corporation organized under the law of another state or country.
Foreign Corporation - A corporation organized under the law of another state or country.
Funded Insurance Trust
Funded Insurance Trust - A trust with assets which could be an insurance policy and/or other kinds of property.
Funded Insurance Trust - A trust with assets which could be an insurance policy and/or other kinds of property.
Funding – Retitling assets into the trust name so they are governed by it.
Funeral Trust / Cemetery Trust / Qualified Funeral Trust
Pre-need arrangements to fund funeral or cemetery expenses. Some qualify for special tax treatment. Search: qualified funeral trust, cemetery endowment trust.
Pre-need arrangements to fund funeral or cemetery expenses. Some qualify for special tax treatment. Search: qualified funeral trust, cemetery endowment trust.
Grantor - (on a Deed)
Grantor - (on a Deed): The person transferring his title to another (the Grantee) under a deed. Trust: The same as Creator, Settlor, or Trustor.
Grantor - (on a Deed): The person transferring his title to another (the Grantee) under a deed. Trust: The same as Creator, Settlor, or Trustor.
Guardian
Guardian - A individual or institution (trust company) determined by a court to manage the property of a individual who is judged incapable of handling their affairs.
Guardian - A individual or institution (trust company) determined by a court to manage the property of a individual who is judged incapable of handling their affairs.
Grantor Trust
Grantor Trust - A term used in the Internal Revenue Code to describe any trust over which the grantor or other owner retains the power to control or direct the trust's income or assets.
Grantor Trust - A term used in the Internal Revenue Code to describe any trust over which the grantor or other owner retains the power to control or direct the trust's income or assets.
Grantor Retained Annuity Trust (GRAT)
Grantor Retained Annuity Trusts (GRATs) are a favored estate planning tool for transferring assets with little or no gift tax consequences. To establish a GRAT, the grantor sets up the trust to which assets are transferred for a retained annuity for the duration of the trust, which can be as short as two years. GRATs have become increasingly popular over the past few years because of depressed asset values and low interest rates. The assets placed into the trust are invested and whatever appreciation remains after the required annuity payments to the grantor are transferred to beneficiaries free of gift tax. The trust assets are returned to the grantor as a final annuity payment at the end of the trust term. Grantor retains fixed annuity for term; appreciation above special rate passes gift-tax efficiently (zeroed-out common). Death during term usually returns assets to estate. Search: zeroed-out GRAT.
Grantor Retained Annuity Trusts (GRATs) are a favored estate planning tool for transferring assets with little or no gift tax consequences. To establish a GRAT, the grantor sets up the trust to which assets are transferred for a retained annuity for the duration of the trust, which can be as short as two years. GRATs have become increasingly popular over the past few years because of depressed asset values and low interest rates. The assets placed into the trust are invested and whatever appreciation remains after the required annuity payments to the grantor are transferred to beneficiaries free of gift tax. The trust assets are returned to the grantor as a final annuity payment at the end of the trust term. Grantor retains fixed annuity for term; appreciation above special rate passes gift-tax efficiently (zeroed-out common). Death during term usually returns assets to estate. Search: zeroed-out GRAT.
GST Tax / Generation-Skipping Transfer Tax – Tax on transfers skipping a generation. Dynasty and HEET trusts address it.
Gun Trust / NFA Trust / Firearms Trust
Specialized (usually revocable) trust holding National Firearms Act items so multiple trustees can possess them lawfully and simplify transfer at death. Must comply with ATF rules. Search: NFA trust, silencer trust.
Specialized (usually revocable) trust holding National Firearms Act items so multiple trustees can possess them lawfully and simplify transfer at death. Must comply with ATF rules. Search: NFA trust, silencer trust.
Health and Education Exclusion Trust (HEET)
Dynasty-style trust allowing GST-tax-free payments for medical expenses and tuition of skip persons even after GST exemption is exhausted. Strict limits on other distributions. Search: HEET trust GST.
Dynasty-style trust allowing GST-tax-free payments for medical expenses and tuition of skip persons even after GST exemption is exhausted. Strict limits on other distributions. Search: HEET trust GST.
Heir
A beneficiary or person inherits funds or property from the estate of a person who has died.
A beneficiary or person inherits funds or property from the estate of a person who has died.
HEMS / Ascertainable Standard
True TrustHealth, Education, Maintenance, Support. Limits powers to avoid estate inclusion.
True TrustHealth, Education, Maintenance, Support. Limits powers to avoid estate inclusion.
Homestead Property
Homestead Property - Property that is set aside for a specific family member that cannot be transferred to a third party. On the simplest level, a document you file with the County Recorder, and when you do it, you gain a lot of protection for your home. More specifically, if you file a declaration of homestead, then some of your equity in your home will be protected against forced sale by creditors.
Homestead Property - Property that is set aside for a specific family member that cannot be transferred to a third party. On the simplest level, a document you file with the County Recorder, and when you do it, you gain a lot of protection for your home. More specifically, if you file a declaration of homestead, then some of your equity in your home will be protected against forced sale by creditors.
Honorary Trust
Trust for a purpose that is not charitable and has no definite beneficiary (e.g., care of a pet or maintenance of a grave). Valid only for a limited period in many jurisdictions or under specific statutes. Often overlaps with pet/purpose trusts. Search: honorary trust pet.
Trust for a purpose that is not charitable and has no definite beneficiary (e.g., care of a pet or maintenance of a grave). Valid only for a limited period in many jurisdictions or under specific statutes. Often overlaps with pet/purpose trusts. Search: honorary trust pet.
Income-shifting
Income-shifting - Determine where to funnel income to control tax brackets.
Income-shifting - Determine where to funnel income to control tax brackets.
Incompetents
Incompetents - Persons not able or competent to perform duties. Too young or too old or insane or too ill.
Incompetents - Persons not able or competent to perform duties. Too young or too old or insane or too ill.
Insurance Trusts
Insurance Trusts - A trust specifically designed for insurance.
Insurance Trusts - A trust specifically designed for insurance.
Intentionally Defective Grantor Trust (IDGT)
Grantor pays income tax on trust income while assets removed from estate. Enables tax-free growth. IDGT often paired with sales. Search: intentionally defective grantor trust, swap power.
Grantor pays income tax on trust income while assets removed from estate. Enables tax-free growth. IDGT often paired with sales. Search: intentionally defective grantor trust, swap power.
Interested person
Interested person - A person who may have a claim against a decedent s estate or an interest in a distribution or outcome of an estate.
Interested person - A person who may have a claim against a decedent s estate or an interest in a distribution or outcome of an estate.
Inter Vivos Trust
Inter Vivos Trust - or (intervivos ) - Any trust which is established during life.
Inter Vivos Trust - or (intervivos ) - Any trust which is established during life.
Inter Vivos Qualified Terminable Interest Property Trust (QTIP)
Inter Vivos Qualified Terminable Interest Property Trust (QTIP) May protect assets from creditor claims for both spouses.
Inter Vivos Qualified Terminable Interest Property Trust (QTIP) May protect assets from creditor claims for both spouses.
Intestate
Intestate - Died without a will.
Intestate - Died without a will.
Inventory
Inventory - A list of estate assets values and liabilities. (see getting organized checklist)
Inventory - A list of estate assets values and liabilities. (see getting organized checklist)
Invasion
Invasion of a Trust - Refers to a distribution of assets made from the principal of a trust.
Invasion of a Trust - Refers to a distribution of assets made from the principal of a trust.
Irrevocable Life Insurance Trust (ILIT)
Irrevocable Life Insurance Trust (ILIT) the cash value of the policy is protected from creditors while you are still living, and the proceeds that go to beneficiaries are also protected when you die.
Irrevocable Life Insurance Trust (ILIT) the cash value of the policy is protected from creditors while you are still living, and the proceeds that go to beneficiaries are also protected when you die.
Irrevocable Trust
Irrevocable Trust - Any trust in which the creator retains no power to revoke or cancel the trust agreement. May still have special provisions or powers or restrictions or limited modifications.
Irrevocable Trust - Any trust in which the creator retains no power to revoke or cancel the trust agreement. May still have special provisions or powers or restrictions or limited modifications.
Inter Vivos QTIP
Lifetime QTIP trust funded during the grantor’s life that can qualify for the gift tax marital deduction. Search: inter vivos QTIP.
Lifetime QTIP trust funded during the grantor’s life that can qualify for the gift tax marital deduction. Search: inter vivos QTIP.
Investment Trust
Commercial trust (e.g., REIT) where beneficial interests may be bought and sold. Search: real estate investment trust.
Commercial trust (e.g., REIT) where beneficial interests may be bought and sold. Search: real estate investment trust.
IOLTA / IRETA
Interest on Lawyer Trust Account / Interest on Real Estate Trust Account – pooled accounts for client funds where interest goes to public programs. Search: IOLTA trust account.
Interest on Lawyer Trust Account / Interest on Real Estate Trust Account – pooled accounts for client funds where interest goes to public programs. Search: IOLTA trust account.
Irrevocable Life Insurance Trust (ILIT)
Owns life insurance so proceeds excluded from taxable estate. Uses Crummey powers and independent trustee. Provides liquidity. Search: ILIT Crummey.
Owns life insurance so proceeds excluded from taxable estate. Uses Crummey powers and independent trustee. Provides liquidity. Search: ILIT Crummey.
Irrevocable Trust
Generally cannot be amended or revoked by grantor. Potential creditor protection and estate tax exclusion.
Generally cannot be amended or revoked by grantor. Potential creditor protection and estate tax exclusion.
Joint Tenancy
Joint Tenancy - aka Joint Ownership - An undivided interest in property held by two or more persons, who all hold the same title and rights of possession, at the same time, jointly, and under which the survivor or survivors take the entire interest.
Joint Tenancy - aka Joint Ownership - An undivided interest in property held by two or more persons, who all hold the same title and rights of possession, at the same time, jointly, and under which the survivor or survivors take the entire interest.
Judgment
Judgment - A court ruling awarding value or actions ending a lawsuit. Collection or enforcement probably difficult or very expensive or limited. Often uncollectible, especially if anticipated and preplanned by proper Private Asset Protection Trust Plan. (See www.truetrust.com)
Judgment - A court ruling awarding value or actions ending a lawsuit. Collection or enforcement probably difficult or very expensive or limited. Often uncollectible, especially if anticipated and preplanned by proper Private Asset Protection Trust Plan. (See www.truetrust.com)
Judgment Proof
Judgment Proof - A person without assets or concern of lawsuits.
Judgment Proof - A person without assets or concern of lawsuits.
Jurisdiction
Jurisdiction - Situs - The authority of a court or government to determines legal cases.
Jurisdiction - Situs - The authority of a court or government to determines legal cases.
Land Trust (Illinois Land Trust style)
Holds title to real estate for privacy; beneficiary often not on public record. Limited creditor protection by itself. Search: Illinois land trust.
Holds title to real estate for privacy; beneficiary often not on public record. Limited creditor protection by itself. Search: Illinois land trust.
Land Trust
Land Trust - Commonly referred to as an Illinois Land Trust, for houses, property, or other real estate (or notes and mortgages secured by real estate). Unique features for land ownership.
Land Trust - Commonly referred to as an Illinois Land Trust, for houses, property, or other real estate (or notes and mortgages secured by real estate). Unique features for land ownership.
Last Will
Last Will - Literally, the will last executed by an individual, which revokes any former existing wills.
Last Will - Literally, the will last executed by an individual, which revokes any former existing wills.
Letters of Administration
Letters of Administration - Documentation signed by the probate court give a person authority to act on behalf of an estate.
Letters of Administration - Documentation signed by the probate court give a person authority to act on behalf of an estate.
Law of Contract
Law of Contract - The basis upon which many contracts exist (as opposed to the Law of Statutes). The right to contract was exposed and granted by the U. S. Constitution.
Law of Contract - The basis upon which many contracts exist (as opposed to the Law of Statutes). The right to contract was exposed and granted by the U. S. Constitution.
Law of Statute
Law of Statute - Laws based on a single State of the United States. Usually binding in other states, but based upon state law. Most attorneys assume contracts are based upon the local state law, unless stated otherwise within the contract. Also, most attorneys will create contracts based upon their local state laws, because their license, training, and background are similarly based.
Law of Statute - Laws based on a single State of the United States. Usually binding in other states, but based upon state law. Most attorneys assume contracts are based upon the local state law, unless stated otherwise within the contract. Also, most attorneys will create contracts based upon their local state laws, because their license, training, and background are similarly based.
Lawyer
Lawyer - "A licensed person (first) representing the court practicing law, not necessarily justice. Client is secondary concern. Justice is lessor concern than procedure and court rules."
Lawyer - "A licensed person (first) representing the court practicing law, not necessarily justice. Client is secondary concern. Justice is lessor concern than procedure and court rules."
Legal Title
Legal Ownership or Legal Title - An estate or interest in property which is enforceable in a court of law.
Legal Ownership or Legal Title - An estate or interest in property which is enforceable in a court of law.
License
License - A governmental permit to engage in a particular activity. Often unnecessary such as consultants, internet business, investing, advisors, agents, and many more; but common and mostle required in some professions like medical, food, construction, dangerous industry. Many gray areas exist and the law generally allows labor without a license.
License - A governmental permit to engage in a particular activity. Often unnecessary such as consultants, internet business, investing, advisors, agents, and many more; but common and mostle required in some professions like medical, food, construction, dangerous industry. Many gray areas exist and the law generally allows labor without a license.
Lien
Lien - A hold upon property until payment of a debt or duty. Does not guarantee payment.
Lien - A hold upon property until payment of a debt or duty. Does not guarantee payment.
Life Estate
Life Estate - Only a benefit during the life of a person. Gone uon death with no benefit or value to heirs.
Life Estate - Only a benefit during the life of a person. Gone uon death with no benefit or value to heirs.
Liquidating Trust
Commercial trust used to wind up and distribute assets of a business or entity. Search: liquidating trust bankruptcy.
Commercial trust used to wind up and distribute assets of a business or entity. Search: liquidating trust bankruptcy.
Lis Pendens
Lis Pendens - "Suit pending"; notice of legal action.
Lis Pendens - "Suit pending"; notice of legal action.
Living Trust
(See Revocable Trust)
(See Revocable Trust)
Living Will
Living Will - A legal document in which an individual states, in advance of final illness or injury, his or her wishes regarding procedures and equipment designed to extend life.
Living Will - A legal document in which an individual states, in advance of final illness or injury, his or her wishes regarding procedures and equipment designed to extend life.
Massachusetts Trust
Massachusetts Trust - See "Business Trust".
Massachusetts Trust - See "Business Trust".
Nevada Trust
- A trust created based upon Nevada Law because of favorable laws regarding state taxes.
- A trust created based upon Nevada Law because of favorable laws regarding state taxes.
Notary Public
Notary Public aka NOTARY - A person that attaches a signature and Seal by a Notary Public signifying that a specific person(s) has personally signed a document. Sometimes also attesting that an oath was stated as well.
Notary Public aka NOTARY - A person that attaches a signature and Seal by a Notary Public signifying that a specific person(s) has personally signed a document. Sometimes also attesting that an oath was stated as well.
Oral Trust
Trust created orally (recognized under Uniform Trust Code in some cases, but not for real property in many states). Difficult to prove and enforce. Search: oral trust Uniform Trust Code.
Trust created orally (recognized under Uniform Trust Code in some cases, but not for real property in many states). Difficult to prove and enforce. Search: oral trust Uniform Trust Code.
Passive Trust
Passive Trust - A trust regarding which the trustee has no active duties to perform, being merely a titleholder or holding entity.
Passive Trust - A trust regarding which the trustee has no active duties to perform, being merely a titleholder or holding entity.
Perpetuity Law
Perpetuity Law - Any limitation or condition which may take away or suspend the power of alienation for a period beyond life or lives in being and 21 years thereafter.
Perpetuity Law - Any limitation or condition which may take away or suspend the power of alienation for a period beyond life or lives in being and 21 years thereafter.
Person
Person - Either a human being, corporation, partnership, trust, or other entity, unless shown that only a human being is intended.
Person - Either a human being, corporation, partnership, trust, or other entity, unless shown that only a human being is intended.
Personal Property
Personal Property - All property other than real property.
Personal Property - All property other than real property.
Pet Trust
Pet Trust / Purpose Trust
For care of pets or other non-charitable purposes (artwork, property maintenance, etc.). Many states validate pet trusts by statute. Broader purpose trusts in some jurisdictions. Search: pet trust statute, non-charitable purpose trust.
Pet Trust / Purpose Trust
For care of pets or other non-charitable purposes (artwork, property maintenance, etc.). Many states validate pet trusts by statute. Broader purpose trusts in some jurisdictions. Search: pet trust statute, non-charitable purpose trust.
Petition
Petition - Documents filed in probate court to request that an action be taken, such as a petition to open an estate for probate.
Petition - Documents filed in probate court to request that an action be taken, such as a petition to open an estate for probate.
Pour-Over Trust
Trust (usually a revocable living trust) that receives assets “poured over” from a will at death. The will directs the executor to transfer residual estate assets into the trust. Search: pour-over will trust.
Trust (usually a revocable living trust) that receives assets “poured over” from a will at death. The will directs the executor to transfer residual estate assets into the trust. Search: pour-over will trust.
Power
Power - Authority or right to do or to refrain from doing a particular act, such as a manager's banking power.
Power - Authority or right to do or to refrain from doing a particular act, such as a manager's banking power.
Power of Appointment
Power of Appointment - The power given by an individual to another in a will or trust document to determine which persons will receive an interest in his or her estate.
Power of Appointment - The power given by an individual to another in a will or trust document to determine which persons will receive an interest in his or her estate.
Power of Attorney (POA)
Power of Attorney - A legal document authorizing one individual to act as the agent or "attorney" for another (the "principal"). If the attorney is authorized to act in behalf of another for all matters, he or she has general power of attorney. Authority to act solely regarding specified situations is special power of attorney. If the authority granted extends beyond the disability of the principal, the attorney has durable power of attorney.
Power of Attorney - A legal document authorizing one individual to act as the agent or "attorney" for another (the "principal"). If the attorney is authorized to act in behalf of another for all matters, he or she has general power of attorney. Authority to act solely regarding specified situations is special power of attorney. If the authority granted extends beyond the disability of the principal, the attorney has durable power of attorney.
Preference
Preference - The payment of certain types of creditors before other creditors.
Preference - The payment of certain types of creditors before other creditors.
Principal
Principal - In either a trust or a will, the real and personal property which initially makes up the corpus of the estate or which is subsequently transferred thereto from which income is produced; or in an agency relationship, the principal is the individual who authorized another to act on his or her behalf, which individual is also known as an agent.
Principal - In either a trust or a will, the real and personal property which initially makes up the corpus of the estate or which is subsequently transferred thereto from which income is produced; or in an agency relationship, the principal is the individual who authorized another to act on his or her behalf, which individual is also known as an agent.
Private Asset Protection Trust - PAPT
Protects against lawsuits, asset attacks, divorce losses, medical bills, beneficiary conflicts, public disclosures, tax claims. and more. Better than a Pre-nup Agreement. Better than a LLC or Corporation. Requires advance setup. Can combine multiple benefits and features from other specific trusts. Can affect step-up in basis and property taxes and income taxes.
Protects against lawsuits, asset attacks, divorce losses, medical bills, beneficiary conflicts, public disclosures, tax claims. and more. Better than a Pre-nup Agreement. Better than a LLC or Corporation. Requires advance setup. Can combine multiple benefits and features from other specific trusts. Can affect step-up in basis and property taxes and income taxes.
Probate
Probate - A court controlled action with costs & fees & restrictions & claims & taxes & disputes & wasted time pertaining to resolution of an estate (probate). Could have easily been avoided with estate planning trust(s).
Probate - A court controlled action with costs & fees & restrictions & claims & taxes & disputes & wasted time pertaining to resolution of an estate (probate). Could have easily been avoided with estate planning trust(s).
Probate Court
Probate Court - The court that has jurisdiction with respect to wills and intricacies and sometimes guardianships, adoptions, etc.; also called court of probate (Connecticut); surrogate's court (New York); Ordinary Court (Georgia); Orphan's Court (Delaware, Maryland, New Jersey, Pennsylvania); and Perfect's Court (New Mexico).
Probate Court - The court that has jurisdiction with respect to wills and intricacies and sometimes guardianships, adoptions, etc.; also called court of probate (Connecticut); surrogate's court (New York); Ordinary Court (Georgia); Orphan's Court (Delaware, Maryland, New Jersey, Pennsylvania); and Perfect's Court (New Mexico).
Pro rata
Pro rata - A portion of value based on percentage amount.
Pro rata - A portion of value based on percentage amount.
Property
Property - The assets that are owned by a person. Quite often refers to furniture, jewelry, metals, contracts, banking, real estate, or an joint interest.
Property - The assets that are owned by a person. Quite often refers to furniture, jewelry, metals, contracts, banking, real estate, or an joint interest.
Prudent Investor Rule
Prudent Investor Rule - Legal term that refers to the duty of the fiduciary to invest and manage assets in the best interests of another.
Prudent Investor Rule - Legal term that refers to the duty of the fiduciary to invest and manage assets in the best interests of another.
Prenuptial Agreement
Prenuptial Agreements - Agreements made before marriage about what will result of each spouse's assets and belongings they owned before the marriage in case of a divorce.
Prenuptial Agreements - Agreements made before marriage about what will result of each spouse's assets and belongings they owned before the marriage in case of a divorce.
Protective Trust
Trust that converts to discretionary upon attempted alienation or bankruptcy of the beneficiary, providing protection. Search: protective trust.
Trust that converts to discretionary upon attempted alienation or bankruptcy of the beneficiary, providing protection. Search: protective trust.
Public Administrator
Public Administrator - In many states, a public official whose main duty is to inventory, protect, move, and control all assets until a court determines the settlement of the estate of persons who died without appointed individuals and have assets not in a trust.
Public Administrator - In many states, a public official whose main duty is to inventory, protect, move, and control all assets until a court determines the settlement of the estate of persons who died without appointed individuals and have assets not in a trust.
Pure Trust
Pure Trust - An irrevocable trust arrangement, based on the Laws of Contract, that does not have a Grantor, which that holds fee simple title to the trust assets, and has a termination date. The beneficiaries of which are the holders of Trust Certificate Units (TCU's). Additionally, the trust must not contain three of the following: Centralized management, Continuous Life, Easy transfer of beneficial interest, or Limited personal liability of trustees. Commonly abused by tax resistors and promoters. Not recommended. See also "Business Trust"
Pure Trust - An irrevocable trust arrangement, based on the Laws of Contract, that does not have a Grantor, which that holds fee simple title to the trust assets, and has a termination date. The beneficiaries of which are the holders of Trust Certificate Units (TCU's). Additionally, the trust must not contain three of the following: Centralized management, Continuous Life, Easy transfer of beneficial interest, or Limited personal liability of trustees. Commonly abused by tax resistors and promoters. Not recommended. See also "Business Trust"
Pure Trust – See Business Trust. (Original cross-reference.)
Qualified Domestic Trust (QDOT)
Trust under IRC §2056A allowing marital deduction when surviving spouse is not a U.S. citizen. Requires U.S. trustee with withholding power. Search: QDOT noncitizen.
Trust under IRC §2056A allowing marital deduction when surviving spouse is not a U.S. citizen. Requires U.S. trustee with withholding power. Search: QDOT noncitizen.
Qualified Personal Residence Trust (QPRT)
Transfers residence at discounted gift tax value; grantor retains right to live there for a term. Survival of term removes from estate. Search: QPRT home.
Transfers residence at discounted gift tax value; grantor retains right to live there for a term. Survival of term removes from estate. Search: QPRT home.
Qualified Retirement Plan
Qualified retirement plans - IRAs and 401(k)s provide an extra layer of asset protection as well as a tax deduction for contributions.
Qualified retirement plans - IRAs and 401(k)s provide an extra layer of asset protection as well as a tax deduction for contributions.
Qualified Terminable Interest
QTIP - Inter Vivos Qualified Terminable Interest Property Trust this spousal trust protects assets from creditor claims for both spouses.
QTIP - Inter Vivos Qualified Terminable Interest Property Trust this spousal trust protects assets from creditor claims for both spouses.
Quit-Claim Deed
Quit-Claim Deed - A legal instrument by which one conveys all of his right, title and interest in real estate to another without giving any guarantees of any kinds as to what, if any, that right to, title, or interest in the property is. States that "Never Had" or "Does Not" have any interest in ownership or rights. Often mis-used by divorces or clouded title actions.
Quit-Claim Deed - A legal instrument by which one conveys all of his right, title and interest in real estate to another without giving any guarantees of any kinds as to what, if any, that right to, title, or interest in the property is. States that "Never Had" or "Does Not" have any interest in ownership or rights. Often mis-used by divorces or clouded title actions.
Qualified Subchapter S Trust (QSST)
Trust eligible to hold S corporation stock under specific single-beneficiary and income distribution rules. Search: QSST.
Trust eligible to hold S corporation stock under specific single-beneficiary and income distribution rules. Search: QSST.
Quistclose Trust
Trust that arises when money is advanced for a specific purpose (e.g., to pay a dividend or particular creditor). If the purpose fails, the funds are held on trust for the lender rather than becoming part of the recipient’s general assets (important in insolvency). Recognized in many common-law jurisdictions. Search: Quistclose trust Barclays.
Trust that arises when money is advanced for a specific purpose (e.g., to pay a dividend or particular creditor). If the purpose fails, the funds are held on trust for the lender rather than becoming part of the recipient’s general assets (important in insolvency). Recognized in many common-law jurisdictions. Search: Quistclose trust Barclays.
Rabbi Trust
Irrevocable trust for nonqualified deferred compensation. Assets remain subject to employer’s creditors. Provides limited security to employee. Search: rabbi trust deferred compensation.
Irrevocable trust for nonqualified deferred compensation. Assets remain subject to employer’s creditors. Provides limited security to employee. Search: rabbi trust deferred compensation.
Real Estete
Real Estate - The right, title, or interest that a person has in real property that legally are classified as real; opposed to personal property. Must be in writing. Recording usually required
Real Estate - The right, title, or interest that a person has in real property that legally are classified as real; opposed to personal property. Must be in writing. Recording usually required
Real Property
Real Property - Land and that which is attached to the land.
Real Property - Land and that which is attached to the land.
Reciprocal Trusts
Reciprocal Trusts - Trusts made by two or more persons that make reciprocal provisions in favor of each other.
Reciprocal Trusts - Trusts made by two or more persons that make reciprocal provisions in favor of each other.
Recordation
Recordation - Notification to the public by filing with a government recorder or permanent entity that confirms trust existence.
Recordation - Notification to the public by filing with a government recorder or permanent entity that confirms trust existence.
Remainderman
Remainderman - In the case of a trust, this term refers to the individual who will receive the principal of a trust when final distribution takes place.
Remainderman - In the case of a trust, this term refers to the individual who will receive the principal of a trust when final distribution takes place.
Revocable Trust
Revocable Trust - Sometimes called a "Living" or "Family" or "Living Revocable", or "Inter Vivos" trust which by its terms may be terminated. Totally worthless while revocable and Creator still alive, but can be good for future planning. Could be amended to be worthwhile or protective. A trust created during the lifetime of the creator.
Revocable Trust - Sometimes called a "Living" or "Family" or "Living Revocable", or "Inter Vivos" trust which by its terms may be terminated. Totally worthless while revocable and Creator still alive, but can be good for future planning. Could be amended to be worthwhile or protective. A trust created during the lifetime of the creator.
Rule against perpetuities
Rule against perpetuities - A rule of common law that makes void any estate or interest in property so limited that it will not take effect or vest within a limited period of time. Jurisdiction may or may not legislate for or against.
Rule against perpetuities - A rule of common law that makes void any estate or interest in property so limited that it will not take effect or vest within a limited period of time. Jurisdiction may or may not legislate for or against.
Resulting Trust
Implied trust arising by law when express trust fails or property transferred without gift intent (e.g., purchase money resulting trust).
Implied trust arising by law when express trust fails or property transferred without gift intent (e.g., purchase money resulting trust).
Secret Trust / Semi-Secret Trust
Will leaves property to someone who agreed (often orally) to hold for another. Enforceable in equity under certain conditions. Search: secret trust will.
Will leaves property to someone who agreed (often orally) to hold for another. Enforceable in equity under certain conditions. Search: secret trust will.
Self-Settled Trust
Trust in which the grantor is also a beneficiary; generally vulnerable to grantor’s creditors except in DAPT states. Search: self-settled trust.
Trust in which the grantor is also a beneficiary; generally vulnerable to grantor’s creditors except in DAPT states. Search: self-settled trust.
Settlor
Settlor - An individual who establishes a trust in order to transfer property. (See Grantor)
Settlor - An individual who establishes a trust in order to transfer property. (See Grantor)
Sham Trust
Arrangement labeled a “trust” that does not actually transfer ownership or control and is disregarded by courts and the IRS as abusive. Not a valid trust. Search: sham trust abusive.
Arrangement labeled a “trust” that does not actually transfer ownership or control and is disregarded by courts and the IRS as abusive. Not a valid trust. Search: sham trust abusive.
Simple Trust
IRS: distributes all income currently, no principal distributions, no charitable contributions. Contrast Complex Trust.
IRS: distributes all income currently, no principal distributions, no charitable contributions. Contrast Complex Trust.
Situs – Legal jurisdiction of the trust. Critical for protection, tax, and duration rules.
Simple Trust
Simple Trust - (a) Simple; (b) Short, readable, singular purpose; per IRS Code that: Is not a grantor trust or required to be treated as a grantor trust; Is required to distribute all income annually; and Does not distribute the corpus of the trust or make charitable contributions.
Simple Trust - (a) Simple; (b) Short, readable, singular purpose; per IRS Code that: Is not a grantor trust or required to be treated as a grantor trust; Is required to distribute all income annually; and Does not distribute the corpus of the trust or make charitable contributions.
SLANT (Spousal Lifetime Access Non-Grantor Trust)
Non-grantor version of a SLAT. Spouse is beneficiary but trust is taxed as a separate taxpayer (not grantor trust). Useful for stacking QSBS exclusion or state tax planning. Search: SLANT non-grantor trust.
Non-grantor version of a SLAT. Spouse is beneficiary but trust is taxed as a separate taxpayer (not grantor trust). Useful for stacking QSBS exclusion or state tax planning. Search: SLANT non-grantor trust.
SPA Trust
SPA Trust - Special Power of Appointment Trust - Most trusts allow and provide for the power to appoint additional or replacement trustees.
SPA Trust - Special Power of Appointment Trust - Most trusts allow and provide for the power to appoint additional or replacement trustees.
Special Needs Trust (SNT / Supplemental Needs Trust)
A special needs trust can help by paying for things to improve quality of life that the government will not generally pay for; education, cultural events, travel, computer and media equipment, gifts, books, and more. It can be established for a person of any age, and anyone can contribute to the trust. Benefits disabled person without disqualifying from SSI/Medicaid. First-party (payback) vs third-party (no payback). Strict rules. Search: "special needs trust Medicaid".
A special needs trust can help by paying for things to improve quality of life that the government will not generally pay for; education, cultural events, travel, computer and media equipment, gifts, books, and more. It can be established for a person of any age, and anyone can contribute to the trust. Benefits disabled person without disqualifying from SSI/Medicaid. First-party (payback) vs third-party (no payback). Strict rules. Search: "special needs trust Medicaid".
Spendthrift Trust
Restricts beneficiary alienation and protects from beneficiary’s creditors. Standard provision.
Restricts beneficiary alienation and protects from beneficiary’s creditors. Standard provision.
Spouse Gifting Trust
Spousal Gifting Trust - if you re married, you and your spouse can create a Spousal Gifting Trust to protect assets against estate taxes and creditors, while retaining the control and use of those assets.
Spousal Gifting Trust - if you re married, you and your spouse can create a Spousal Gifting Trust to protect assets against estate taxes and creditors, while retaining the control and use of those assets.
Spousal Lifetime Access Trust (SLAT)
Irrevocable trust by one spouse for the other (and often descendants). Uses exemption with indirect access via spouse. Often grantor trust. Search: SLAT reciprocal.
Irrevocable trust by one spouse for the other (and often descendants). Uses exemption with indirect access via spouse. Often grantor trust. Search: SLAT reciprocal.
SS-4 - The application form to apply for a federal tax identification number with the IRS. Often not needed if not tax obligation or taxs are administered elsewhere.
Stand-Alone IRA Beneficiary Trust / Retirement Trust
Purpose-built trust to receive IRA/401(k) proceeds after death, designed to meet see-through rules and control distributions (conduit vs accumulation). Search: standalone retirement trust, IRA trust.
Purpose-built trust to receive IRA/401(k) proceeds after death, designed to meet see-through rules and control distributions (conduit vs accumulation). Search: standalone retirement trust, IRA trust.
State Taxes - Only pertains to assets or residents in certain states. Search "[individual state] taxes"
State Law
State Law - See "Law of Statute".
State Law - See "Law of Statute".
Statement of Wishes
Statement of Wishes - Non-binding management and forecast guidance of trust(s). Usually plain language written explanation of spending, loans, investments, spendthrift provisions, disbursement, caretaking, charity, purpose, and suggestions
Statement of Wishes - Non-binding management and forecast guidance of trust(s). Usually plain language written explanation of spending, loans, investments, spendthrift provisions, disbursement, caretaking, charity, purpose, and suggestions
Successor
Successor Trustee - or Successor Executor - An individual or institution taking the place of a (unavailable or deceased) trustee or executor unable to continue the responsibilities designated in the trust agreement or will.
Successor Trustee - or Successor Executor - An individual or institution taking the place of a (unavailable or deceased) trustee or executor unable to continue the responsibilities designated in the trust agreement or will.
Summary Administration
Summary Administration - A simplified probate proceeding for estate valued at less than a stipulated amount (see state statues) and holds no real property.
Summary Administration - A simplified probate proceeding for estate valued at less than a stipulated amount (see state statues) and holds no real property.
Support Trust
Trust directing distributions for the beneficiary’s support (often HEMS); less flexible than pure discretionary trusts. Search: support trust.
Trust directing distributions for the beneficiary’s support (often HEMS); less flexible than pure discretionary trusts. Search: support trust.
Tax-Free Zone
Combination of multiple entities in low tax areas that are NOT closely related by creators, controllers, family, or beneficiaries. Requires professional and strict tax compliance.
Combination of multiple entities in low tax areas that are NOT closely related by creators, controllers, family, or beneficiaries. Requires professional and strict tax compliance.
Taxes
Taxes - Trusts are not required to file a tax returns, provided that the tax reports on all items of income and allowable expenses are reported on a personal Form 1040, U.S. Individual Income Tax Return.
Taxes - Trusts are not required to file a tax returns, provided that the tax reports on all items of income and allowable expenses are reported on a personal Form 1040, U.S. Individual Income Tax Return.
TCU
TCU / Trust Certificate Units - In a Business/Pure Trust arrangement, certificates replace beneficiaries and represent a percentage each of those rights and value. See also "Business Trust"
TCU / Trust Certificate Units - In a Business/Pure Trust arrangement, certificates replace beneficiaries and represent a percentage each of those rights and value. See also "Business Trust"
Tenancy-in-Common
Tenancy-in-Common - A form of shared ownership where there is no right of survivorship. Tenants-in-common can own property in unequal shares, unlike joint tenants who each won an equal share of the property.
Tenancy-in-Common - A form of shared ownership where there is no right of survivorship. Tenants-in-common can own property in unequal shares, unlike joint tenants who each won an equal share of the property.
Testamentary Trust
Created under a will; effective only after death and probate. Often court-supervised. Contrast inter vivos.
Created under a will; effective only after death and probate. Often court-supervised. Contrast inter vivos.
Totten Trust
Informal “in trust for” / payable-on-death bank account. Not a full formal trust.
Informal “in trust for” / payable-on-death bank account. Not a full formal trust.
Testate
Testate - Leaving a valid will. Testator - A person who leaves a will or testament in force at their death.
Testate - Leaving a valid will. Testator - A person who leaves a will or testament in force at their death.
Title
Title - Legal ownership of property. (see transfer by title article)
Title - Legal ownership of property. (see transfer by title article)
Trust IRA
IRA held in trust form rather than custodial form, allowing more customized distribution and control provisions for beneficiaries. Search: trusteed IRA vs custodial.
IRA held in trust form rather than custodial form, allowing more customized distribution and control provisions for beneficiaries. Search: trusteed IRA vs custodial.
Trust
A legal, fiduciary relationship in which an individual or institution (the trustee) holds legal title to property with the responsibility for keeping or managing this property for the benefit of another person or beneficiary. A relationship in which one person (the trustee) holds title (often subject to a number of conditions) to property for the benefit of another person (the beneficiary). A trust is commonly used when money is left to people inexperienced in its management such as children or as a tax saving device. A testamentary trust is one established by a will.
A legal, fiduciary relationship in which an individual or institution (the trustee) holds legal title to property with the responsibility for keeping or managing this property for the benefit of another person or beneficiary. A relationship in which one person (the trustee) holds title (often subject to a number of conditions) to property for the benefit of another person (the beneficiary). A trust is commonly used when money is left to people inexperienced in its management such as children or as a tax saving device. A testamentary trust is one established by a will.
Trust Agreement
Trust Agreement - A legal document that establishes a trust and outlines the rules and guidelines affecting its management and disposition.
Trust Agreement - A legal document that establishes a trust and outlines the rules and guidelines affecting its management and disposition.
Trust Fund
Trust Fund - Property held in trust. This term originally applied only to money held in trust, but is frequently used when referring to all property held in trust.
Trust Fund - Property held in trust. This term originally applied only to money held in trust, but is frequently used when referring to all property held in trust.
Trust Deed
Trust Deed or "Deed of Trust" - See "Deed of Trust".
Trust Deed or "Deed of Trust" - See "Deed of Trust".
Trust Organization Bylaws
Trust Organization Bylaws - Rules determining operations of trust.
Trust Organization Bylaws - Rules determining operations of trust.
Trustee
Trustee - (a) The only person(s) in control (with power); (b) The person(s) appointed conserve and administer the assets of the trust for the beneficiaries; (c) The trustee holds legal title to the trust assets and is required to administer the trust on behalf of the beneficiaries according to the express terms and provisions of the trust agreement. A fiduciary is an individual or organization charged with the duty to act for the benefit of another. NOTE: A trustee is always a fiduciary.
Trustee - (a) The only person(s) in control (with power); (b) The person(s) appointed conserve and administer the assets of the trust for the beneficiaries; (c) The trustee holds legal title to the trust assets and is required to administer the trust on behalf of the beneficiaries according to the express terms and provisions of the trust agreement. A fiduciary is an individual or organization charged with the duty to act for the benefit of another. NOTE: A trustee is always a fiduciary.
Trustor
Trustor - Same as Creator, Grantor, or Settlor.
Trustor - Same as Creator, Grantor, or Settlor.
U.B.O. Business Trust - See "Business Trust".
Unified Credit
Unified Credit - A federal tax credit that offsets gift and estate-tax liability. (search "unified Credit & estate tax charts")
Unified Credit - A federal tax credit that offsets gift and estate-tax liability. (search "unified Credit & estate tax charts")
Voting Trust
Shareholders transfer voting rights to trustee while retaining economic interests. Used for corporate control or succession. Search: voting trust agreement.
Shareholders transfer voting rights to trustee while retaining economic interests. Used for corporate control or succession. Search: voting trust agreement.
Will - A legal document in which a person states who he wants to inherit his property, etc.
2642(c) Trust
Special GST trust under IRC §2642(c) for single beneficiary transfers that can qualify without GST exemption allocation under strict conditions. Search: 2642c trust.
Special GST trust under IRC §2642(c) for single beneficiary transfers that can qualify without GST exemption allocation under strict conditions. Search: 2642c trust.
Disclaimer: Educational and research resource only. Not legal, tax, or financial advice. Laws vary by jurisdiction and change frequently. Consult qualified counsel for your situation. Expanded from the classic TheProtectionBook.com / TrueTrust glossary while preserving original definitions and style. All types and terms fully alphabetized and combined.
Related resources: TrueTrust.com | TheProtectionBook.com