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
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
