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
Assets that are not readily convertible into cash 'without a significant loss of principle, such as an automobile, a house, television set, a radio, etc. ...
number of people born as a percentage of the total population in any given period of time. ...
Insurance company's total investments in financial securities. ...
a contract in life insurance that includes elements of whole life and term insurance. in pensions, a combined life insurance policy and a side (auxiliary) fund to enhance the amount of a ...
Retirement plan under which benefits are fixed in advance by formula, and contributions vary. The defined benefit plan can be expressed in either of two ways: Fixed Dollars: Unit benefit ...
Same as term Annual Policy: contract remaining in force for up to 12 months unless canceled earlier. After 12 months the policy can either be renewed or not renewed by the insurance company ...
Commercial life insurers that operate on the legal reserve system as opposed to fraternal life insurance companies, many of which now operate on a legal reserve basis. ...
Chart showing rate of death at each age in terms of number of deaths per thousand. ...
Insurance arrangement in which all employees of a given business firm are accepted into a plan regardless of their physical condition. The employee cannot be required to take a physical ...
Have a question or comment?
We're here to help.