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
Trade association located in New York City, consisting of approximately 200 captive insurance companies. The objective of the association is to further the common interests of its members. ...
Person, business, or organization specified as the insured (s) in a property or liability insurance policy. In some instances, the policy provides broader coverage to persons other than ...
Person covered under an employee benefit insurance plan. ...
Associated insurers that are under common stock ownership or interlocking directorates. Such an arrangement makes it easier to exchange insurance products for sale to the consumer, reduces ...
Premium payment made by the policy owner under a universal life insurance policy, usually on an automatic monthly preauthorized bank draft basis. The amount of the payment is established ...
Measurement of the use of health insurance by employees of an insured employer, stated in terms of the average number of claims per employee. ...
Bonds sold at a discount from their face value; accumulated interest paid at maturity, as in the case of zero coupon bonds. Interest rate minimum is guaranteed with the prevailing interest ...
Estate under the legal and administrative guidance of both the surety and the fiduciary. Any actions on the part of the estate requires the signatures of both in order to reduce the chances ...
Frequency of illness, sickness, and diseases contracted. ...
Have a question or comment?
We're here to help.