Legal Term for Property Recipient
Exclusion amount: A term used by the Internal Revenue Code to identify the value of assets owned by a deceased person who is effectively exempt from federal estate tax. Capacity: The legal capacity to perform a specific act (e.g., drafting a will or trust, signing a power of attorney, or entering into a binding contract). If you still haven`t solved the Property Recipient crossword issue, search our database for the letters you already have! Disclaimer – The waiver or refusal to accept a gift or bequest, or the receipt of insurance, pension and other products under the designation of a beneficiary so that ownership can be passed on to other purchasers. In order to be a qualified waiver and therefore not to be treated as a gift of the waiver (the person making the waiver), the waiver must be made within nine months and before the renouncer has accepted an interest in the property to avoid a tax-triggering event. Given the currently high amounts of gift and inheritance tax exemption, it may be possible, in many cases, to refrain from achieving non-tax targets even after this period. State laws dealing with waiver may differ, and some wills and trusts may contain explicit provisions governing what happens to assets or interests that are rejected. Be sure to consider all of these issues before denying this. Premature baby: A person who can become an heir by birth or adoption after the date of execution of the will. Trust certificate: Verification of the existence of a trust, which usually identifies the trustees and explains the powers of the trust, but does not disclose the assets, beneficiaries or terms of the trust. Estate tax or estate charges: The tax levied by some states on property passed under the will of a deceased person or by inheritance. Residual Charitable Fund: A trust that you can establish during your lifetime or upon your death and that distributes a pension or Unitrust amount to your selected non-charitable beneficiaries for life or for a period of several years. The rest goes to charity. The charity receives the “rest,” that is, it is a “rest” charitable trust.
A popular aspect of charitable residual funds is that if you transfer low core assets to the trust when those assets are sold, capital gains tax is not paid immediately. Instead, the total proceeds of the sale remain in the trust. When beneficiaries receive annual distributions, they record a portion of the distributed amount as capital gains. The remainder is held in the trust and reinvested. Per stirpes: A Latin expression meaning “by branch” which is a method of distributing property according to the family tree, with descendants taking the share that their deceased ancestor would have taken if the ancestor were alive. Each branch of the designated person`s family receives an equal share of the estate. If all the children were alive, each child would receive a share, but if a child was not alive, that child`s share would be divided equally among the children of the deceased child. Separate property: In general, all property that a person acquired before the marriage and property that the person received during the marriage by gift or inheritance. Dynasty Trust: A trust whose terms allow it to remain in force for the benefit of many future generations and generally avoid succession, inheritance and generation, thereby avoiding taxes while protecting the trust`s assets from beneficiaries` creditors and marital disputes. Matrimonial Trust – A trust formed to hold property for a surviving spouse in escrow planning A-B and eligible for the marriage deduction. A commonly used matrimonial trust is a qualified interest payable fund, or QRAI`s trust, which requires all income to be paid to the surviving spouse. Descendants: The term is defined by state law, but generally a descendant is the children, grandchildren, great-grandchildren, etc.
of a person who are related by blood or have been legally absorbed into the lineage. The problem and the child are usually interchangeable. Trust: An agreement in which property is legally owned by an individual or business trustee as a designated trustee for the benefit of another beneficiary, called a beneficiary, and who is the rightful owner of the property, is managed.