LGL120 Ch 28

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51 terms · Chapter 28

A-B trust

a type of marital deduction trust that reduces the taxation of the second spouse to die by limiting the amount in that person's estate to a sum that is not taxable. Also called bypass trust, credit-shelter trust, and exemption equivalent trust

beneficial title

the right to beneficial enjoyment. Also called equitable title

beneficiary

someone who actually receives a gift under a will; also, one for whose benefit a trust is created. Also called cestui que trust

bypass trust

a type of marital deduction trust that reduces the taxation of the second spouse to die by limiting the amount in that person's estate to a sum that is not taxable. Also called A-B trust, credit-shelter trust, and exemption equivalent trust

cestui que trust

one for whose benefit a trust is created. Also called beneficiary

charitable remainder annuity trust

a trust in which a fixed amount of income is given annually to a beneficiary and the remainder is given to a charity

charitable remainder trust

a trust in which the donor, or a beneficiary, retains the income from the trust for life or other period, after which the trust corpus is given to a charity

charitable remainder unitrust

a trust in which a fixed percentage of income (at least 5 percent of the trust corpus) is given annually to a beneficiary and the remainder is given to a charity

charitable trust

a trust established for charitable purposes. Also called public trust

constructive trust

an implied trust that arises in favor of one who is defrauded when title to property is obtained by fraud

conveyance in trust

a transfer or legal title to property by the settlor to a trustee to hold for the benefit of a beneficiary

corpus

the body, principal sum, or capital of a trust. Also called trust fund, trust principal, trust property, and trust res

credit-shelter trust

a type of marital deduction trust that reduces the taxation of the second spouse to die by limiting the amount in that perosn's estate to a sum that is not taxable. Also called A-B trust, bypass turst, and exemption equivalent trust

Crummey powers

authority that gives trust beneficiaries the right to withdraw each year the money that is contributed to the trust that year

cy pres doctrine

as near as possible

declaration of trust

a written declaration by a settlor that he or she is holding legal title to property as trustee for the benefit of another person

discretionary trust

a trust that allows the trustee to decide how much will be given to each beneficiary in the trustee's discretion. Also called spray trust and sprinkling trust

donor

a person who gives a gift. A person who establishes a trust. Also called grantor, settlor, and trustor

equitable title

the right to beneficial enjoyment. Also called beneficial title

exemption equivalent trust

a type of marital deduction trust that reduces the taxation of the second spouse to die by limiting the amount in that person's estate to a sum that is not taxable. Also called A-B trust, bypass trust, and credit-shelter trust

grantor

a person who transfers real property to another. A person who establishes a trust. Also called donor, settlor, and trustor

implied trust

a trust that arises by implication of law from the conduct of the parties

inter vivos trust

a trust that is created by the settlor when he or she is alive. Also called living trust

irrevocable living trust

a trust that may not be rescinded or changed by the settlor at any time during his or her lifetime

legal title

full, absolute ownership

living trust

a trust that is created by the settlor when he or she is alive. Also called inter vivos trust

marital deduction

the amount that passes from a decedent to a surviving spouse and is not taxable under the federal estate tax law

marital deduction trust

a trust that is arranged to make maximum use of the marital deduction that is found in the federal estate tax law

pour-over trust

a provision in a will leaving a bequest or devise to the trustee of an existing living trust

precatory trust

an express trust that arises from the use of polite, noncommanding language by a testator in a will

public trust

a trust established for charitable purposes. Also called charitable trust

qualified terminable interest property

a marital deduction trust that gives all trust income to a surviving spouse for life, payable at least annually, with the principal passing to someone else upon the spouse's death

resulting trust

an implied trust that arises in favor of the payor when property is transferred to one person after being paid for by another person

revocable living trust

a trust that may be rescinded or changed by the settlor at any time during his or her lifetime

rule against perpetuities

the principle that no interest in property is good unless it must vest, if at all, not later than 21 years agter some life in being, plus the gestation period, at the creation of the interest

settlor

a person who establishes a trust. Also called donor, grantor, and trustor

spendthrift

one who spends money profusely and improvidently

spendthrift trust

a trust designed to provide a fund for the maintenance of a beneficiary and at the same time to secure it against the beneficiary's improvidence or incapacity

spray trust

a trust that allows the trustee to decide how much will be given to each beneficiary in the trustee's discretion. Also called discretionary trust and sprinkling trust

sprinkling trust

a trust that allows the trustee to decide how much will be given to each beneficiary in the trustee's discretion. Also called discretionary trust and spray trust

testamentary trust

a trust that is created by will and that comes into existence only on the death of the testator

Totten trust

a bank account in the name of the depositor as trustee for another person

trust

a right of ownership to property held by one person for the benefit of another

trust deed

an instrument that creates a living trust. Also called trust indenture

trustee

a person who holds legal title to property in trust for another

trust fund

the body, principal sum, or capital of a trust. Also called corpus, trust property, and trust res

trust indenture

an instrument that creates a living turst. Also called trust deed

trustor

a person who establishes a trust. Also called donor, grantor, and settlor

trust principal

the body, principal sum, or capital of a trust. Also called corpus, trust fund, trust property, and trust res

trust property

the body, principal sum, or capital of a trust. Also called corpus, trust fund, trust principal, and trust res

trust res

the body, principal sum, or capital of a trust. Also called corpus, trust fund, trust principal, and trust property

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