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
Life insurance: Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds. Stocks(a) preferred stock investment ...
Method of valuing a reserve under which a life insurance policy, from an actual point of view, combines one-year term insurance and a one-year deferred plan. Here the net premium is ...
Inability of the insured to perform one or more of the important daily duties of that insured's occupation. The income payment to the insured is reduced from that of total disability. ...
Life insurance policy provision under which the policyholder may apply the accumulated cash value, in the form of a single premium payment, to pay up the policy or to mature the policy as ...
coverage issued to a creditor on the life of a debtor so that if the debtor becomes disabled, the insurance policy pays the balance of the debt to the creditor. ...
pool that contains various reinsurance companies with each sharing reinsurance contracts on a pro rata basis as they are submitted to the pool. market that operates much like the New York ...
Right that has a limited time in duration for an individual to receive the income generated by assets owned by another individual. ...
Condition for inland marine liability insurance coverage that states a loss or claim must occur in the policy territory. Policy territory for a liability policy includes the U.S., its ...
Adjustment in property insurance to reflect increased construction costs. ...
Have a question or comment?
We're here to help.