Definition of "Clifford trust"

Up to 1986, arrangement to provide a personal trust while the settlor is still alive. The income is paid to named children, who enjoy lower income taxes. After 10 years and a day, the property reverts to the original owner. The Internal Revenue Service had ruled that the income from the property in trust is not income to the original owner. The Clifford Trust was eliminated under the tax reform act of 1986.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Individual who works in the home office of an insurance company and performs the function of underwriting to determine if an applicant is insurable at standard rates, substandard rates, ...

Total premiums generated from all policies written by an insurance company within a given period of time. ...

Coverage against foreign country expropriation underwritten by the overseas private investment corporation (OPIC) for U.S.-owned companies investing in given developing countries. ...

Clause in a surety bond contract providing for restoration of coverage after a loss without requirement of a restoration premium. ...

Extra percent of interest credited to an annuity during the first year that it is in force. This extra amount is above the interest rate to be credited beginning with the second year and ...

Principle that no liability exposure can result from the performance of proprietary functions. ...

Coverage for acts or omissions committed by an agent or broker resulting in adequate insurance in the event of a liability suit or property damage to a client. ...

Accidental death benefit option that can be added to a disability income (DI) policy under which a lump sum is payable at the loss of life, dismemberment, or loss of sight. ...

Same as term Associate in Risk Management: professional designation earned after the successful completion of three national examinations given by the insurance institute of America (IIA). ...

Popular Insurance Questions