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CH 8: Trusts
Terms in this set (30)
A person who receives a beneficial interest in a trust or property bequeathed from a decedent's estate.
A trust that can accumulate income, distribute corpus, and make gifts to charities. A complex trust qualifies as a separate tax entity that deducts income distributed and pays tax on income retained.
Contingent Remainder Interest
An interest in a trust's remainder that is contingent on the occurrence of a certain event or circumstance.
A corporation named to serve as a fiduciary, such as guardian, executor, or trustee.
Two or more trustees serving together.
A provision that gives a trustee the discretion to make distributions to trust beneficiaries for certain criteria.
A trust created by a state that can last for many generations because it is not subject to the rule against perpetuities. Also known as a perpetual trust.
A person who creates a trust.
An interest in a trust's income.
An individual named to serve as trustee.
A trust established during the settlor's lifetime.
A trust that cannot be amended, revoked, or changed by the grantor.
A trust created by a state that can last for many generations because it is not subject to the rule against perpetuities. Also known as a dynasty trust.
A trust funded by the "pouring in" of assets from a decedent's will.
A split property interest in which a person's interest in property becomes effective at some future time--typically the termination of a period of years or another person's life.
The principal of a trust, also known as trust corpus.
A trust created by a grantor that can be amended, revoked, or changed by the grantor during the grantor's lifetime.
Rule Against Perpetuities
A statutory limit on the duration of trusts that provides that the interests of a beneficiary in a trust must generally vest within the period allowed.
The person who creates a trust. Also known as the trustor.
A trust where all trust income must be distributed in the year it is earned. The trustee cannot distribute trust principal or make charitable gifts.
The physical location of property; the jurisdiction in which real property is subject to estate tax.
A provision in a trust that protects the beneficiary's income and assets from the claims of creditors, divorce, and bankruptcy by restricting the beneficiary's right to assign income and corpus.
A trust provision that gives the trustee discretionary authority to distribute income and corpus to trust beneficiaries in equal or unequal shares. A trust that includes a spray provision can be referred to as a spray trust.
A trust provision that gives the trustee discretionary authority to distribute income to trust beneficiaries in equal or unequal shares. A trust that includes a sprinkle provision can be referred to as a sprinkle trust.
A trust established per the terms of a decedent's will.
The principal of a trust, also known as res.
A fiduciary who may be given certain powers to provide greater flexibility in carrying out trust provisions in the future. The trust protector can adapt various trust provisions, determined when the grantor established the trust, to provide for changes in tax law or beneficiary circumstances. A trust protector can also be referred to as a special trustee or trust adviser.
A person who holds legal title to trust assets and administers those assets for trust beneficiaries. A trustee can manage and invest assets, make distributions, and file tax returns for the trust. A trustee is a fiduciary.
The person who creates a trust. Also known as the grantor.
Vested Remainder Interest
An interest in a trust's remainder that is a vested or certain interest.
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CH 1: Introduction to Estate Planning
CH 2: Property Interests
CH 3: Community Property
CH 4: Methods of Property Transfer at Death
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