Alimony Substitution Trust
Agreement in which spouse X (the spouse who is mandated by the court to make alimony and/or child support payments to spouse Y) must put assets (the principal) in a trust, from which the payments are made to spouse Y. Under this trust, the payments made from the income generated by the principal is taxable income to spouse Y, but any sums paid from the corpus of the principal is not taxable income to spouse Y. Spouse X does not receive a tax deduction for payments made from the trust's corpus of principal, nor does spouse X pay income taxes on the income generated by the principal in the trust.
Popular Insurance Terms
Coverage for exposures that exhibit a possibility of financial loss. ...
Insurance company's net gain from operations divided by its adjusted surplus. This is the accounting rate of return on stockholder's equity since the ratio shows the rate of return the ...
Premise that, out of a large group of people, a given number will die each year (conversely, a given number will remain alive each year) until all the people in that original group are ...
Record of debit or industrial insurance policies. ...
Value in life insurance policies that entitle the insured to these choices: to relinquish the policy for its CASH SURRENDER VALUE. (Note that in the beginning years the cash value may be ...
Policy similar to that of an individual universal life insurance policy except that the coverage is provided (up to a limit) without the requirement of the submission of evidence of ...
Hospital insurance program that provides medical professional liability insurance coverage to non employed hospital physicians. The objective of this means of insurance coverage is to ...
Coverage required by the laws of a particular state. For example, many states stipulate minimum amounts of automobile liability insurance that must be carried. ...
Annuity with no fixed schedule for payment of premiums. For example, premiums can be paid for 10 straight months, then not paid for the next 10 months, then paid every other month, or any ...
Have a question or comment?
We're here to help.