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51 terms

LGL120 Ch 28

Chapter 28
STUDY
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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