Accy 411 Final Terms

Trustee

interested in preserving the principal

Per Stirpes

the method of proportionately dividing an estate between beneficiaries according to their deceased ancestor's share

Devisee

the person who gets the Devise

Probate Estate

the real and personal property owned by a person that can be transferred at death by will

Trust Corpus

The body, principal sum, or capital of a trust **same as Trust Res

Abatement

-decrease, reduction -The process of determining the distribution of the estate when the total assets in the estate are insufficient to satisfy the provisions of the will

Trust

-extremely useful in the area of wealth management

Per Capita

-for each person -Manner of distribution of property in which the heirs to an intestines estate share and share alike

Spendthrift Estate

-used when the grantor wishes to insure that a beneficiary does not squander or foolish spends money -Parents can set up this type of trust when junior cannot handle finances

The elements of a TRUST

1. Grantor, Settlor or Trustor (all mean the same) who creates a trust by conveying 2. property (corpus, principal, or trust res) to a 3. trustee for the benefit of a 4. beneficiary. The book does not include another party who is the 5. remainderman

Collaterals

-Brothers and sisters of the deceased -Receive remaining assets after the surviving spouse, descendants, and ascendants.

Ademption

-The extinction or withdrawal of an inheritance because decedent did not own the property at the time of death -Specific request becomes impossible to perform

Laws of Descent and Distribution

-The rules for distributing the property of an intestate -A child always inherits a deceased parents share

Will

A legally enforceable declaration of how a person wishes his or her property to be distributed after death

Holographic Will

A will in the testator's own handwriting. Does not need to be attested by witnesse

Bequest

A wish or desire for something

Personal Property

All property not classified as real property

Principal Transactions

Amount originally received ex. stock splits, replacement property, capital expenditures

Nuncupative Will

An oral will made by a decedent in peril of impeding death. Can only bequeath personal property

Testate

Dies with a will

Intestate

Dies without a will

Remainderman

Gets the property when the trust ends

Real Property

Land and everything permanently attached to it

Ascendants

People above ex. Grandparents

Descendants

People below ex. children, grandchildren

Settlor

Person who creates a trust

Legacy

Personal property bequest

Devise

Real property request

Trust Res

The body, principal sum, or capital of a trust ** same as Trust Corpus

Attestation

The act of witnessing a person's signing of an instrument by a notary public.

Residuary Estate

The estate remaining after debts, expenses, and specific bequests have been settled.

Income Transactions

The interest, dividends and other income earned by the principal ex. Rents, Interests, Dividends, Depreciation

Beneficiary

The person for whose benefit the trust property is held by the trustee

Probate

The process of proving in court that the will of someone who has died is valid, and of administering the estate of a dead person.

Administrator

a man who has been appointed by the court to settle an estate

Executor

a man appointed by the will of a deceased person to carry out the provisions thereof and settle the estate