Estate Planning Distribution
Definition of "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
Same as term Original Age: insured's age at the date a term life insurance policy is issued. An original age or retroactive conversion option permits the insured to convert the term policy ...
HEALTH MAINTENANCE ORGANIZATION that restricts to a relatively small amount the number of medical providers from which an HMO member may seek services. Usually, HMO members may select the ...
Assistance program for the financially needy. Medicaid, also referred to as Title XIX of the Social Security Act, was enacted in 1965 at the same time as medicare. It is a joint ...
Policy underwritten on either a monoline primary insurance or monoline excess insurance basis that will allow the purchaser to increase the limits of liability coverage above that of ...
Coverage for the contents of a renter's home or apartment and for liability. Tenant policies are similar to homeowners insurance, except that they do not cover the structure. They do, ...
Surrender of rights by an insured against the third party to an insurance company that has paid a claim. ...
Monetary sum paid to an intermediary who acts as the contact between the lender (an insurance company) and the borrower. ...
Additional coverage designed to provide protection against economic losses incurred by insured wage earners when their income is interrupted or terminated because of illness, sickness, or ...
Provision that excludes from coverage under Form No. 3: flood damage, except if the flood causes a fire, explosion, or theft; water damage from the backup of sewers; earthquake, except if ...
Have a question or comment?
We're here to help.