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