Estate Planning Distribution
Plan that involves distribution of property by living hand and distribution of property after the death of its owner. Distribution by living hand can take the form of an outright gift, a grant of limited property interest, or a gift in trust. Distribution at death can be accomplished through a will or, if there is no will, as directed by state law. Common terms include:
- Beneficiary of Trust person who receives the benefits of the trust.
- Life Estate property that can be used in any manner that pleases the donee during his/her life. Upon the death of the donee, the property reverts to the donor or the donor's estate.
- Living Trust property distributed by living individuals.
- Personal Trust one in which an owner of property gives it to another person to safeguard, hold, and use for the benefit of a third party.
- Power of Appointment owner of a property grants the right to another person to decide who should receive title to the property.
- Tenancy donee has the right to use property and to receive income it generates for a limited time, whereupon the property reverts to the owner.
- Testamentary Trust property disposed at the death of the trustor, who has previously described what property is to be placed in the trust, how it is to be managed, and who is to be the trustee. The trustor can change the provisions of the trust by a will. But at the death of the trustor, the testamentary trust becomes irrevocable.
- Trustee person to whom a trustor transfers property. The trustee is obligated to safeguard, manage, and use the property in accordance with the terms and conditions of the trust.
- Trustor individual who puts his/her thoughts in writing concerning the terms of the trust and the process of transferring the property to the trustee.
Popular Insurance Terms
Life insurance policy provision stating that after the death of an insured, the proceeds from a policy are not immediately paid to the primary beneficiary; instead, they are delayed for a ...
Placement of verbal descriptive information into numerical form for the purposes of analysis. ...
Amount received by the policyholder if the policy is canceled, benefits are reduced, or the premium is reduced. ...
Same as term Claims Made Basis: method of determining whether or not coverage is available for a specific claim. If a claim is made during the time period when a liability policy is in ...
Same as term Expiration File: agents' records showing when clients' policies expire. ...
Same as term Extended Coverage Endorsement: added to an insurance policy or a clause found in an insurance policy that will provide additional coverage for risks to be insured other than ...
Assets from a will transfer into an established life insurance trust. Through this mechanism, assets that have been probated are transferred into a living trust. ...
Annual contributions to a pension plan that exceed or are smaller than the minimum required for future employee benefits currently being earned; and any supplemental liability for past ...
Health insurance that provides coverage for physicians' fees for all services, with the exception of surgeons' fees. ...

Have a question or comment?
We're here to help.