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Home Dictionary N Notice to Creditors Notification to creditors is a public announcement of the death of an individual in order to warn potential creditors of the situation. The notice, still published in local newspapers, is filed by the executor and is intended to facilitate probate. Creditors will have a limited amount of time to respond to the notice, which may also be filed by individuals declaring bankruptcy. A-B Trust
September 25, 2022 AB trust is a joint trust created by a married couple; after the death of one of the spouses, the trust is divided into the survivor’s part (Trust A) and the bypass part (Decedent’s Trust or Trust B). Account in Trust
September 25, 2022 Trust accounts are managed by a trustee on behalf of a third party. Agency by Necessity
September 25, 2022 The agency, if necessary, allows any person or entity to act on behalf of another person when the beneficiary cannot explicitly give permission to do so. Bare Trust
September 25, 2022 Naked trusts or “naked trusts” grant the beneficiary, if over 18 years of age, an absolute right to the capital, assets and income within the trust. Contingent Beneficiary
September 25, 2022 The notional beneficiary is the beneficiary of the proceeds or payment if the primary beneficiary is deceased or cannot be located. Declaration Of Trust
September 25, 2022 A declaration of trust or declaration of a nominee appoints a trustee to oversee the assets for the benefit of another person or persons. Distributable Net Income (DNI)
September 25, 2022 Distributable net income is the income distributed among the beneficiaries of the trust. Dynasty Trust
September 25, 2022 Dynasty trusts allow rich people to leave money to future generations without paying inheritance taxes. Endowment
September 25, 2022 Most donations are designed to keep the principal amount intact while using income from investments for charitable purposes. Escheat
September 25, 2022 Escheat refers to the government’s right to take possession of real estate or unclaimed property. Estate
September 25, 2022 Real estate is the economic evaluation of all investments, assets and interests of a person. Estate Tax
September 25, 2022 Inheritance tax is a financial levy on property based on the current value of its assets. Executor
September 25, 2022 An executor is a person who disposes of a person’s property after his death. Generation-Skipping Trust
September 25, 2022 A generation skip trust (GST) is a legally binding arrangement whereby assets are passed on to the grantor’s grandchildren or anyone 37.5 years younger, bypassing the grantor’s next generation of children. Gift Causa Mortis
September 25, 2022 Gift causa mortis is when a person gives a gift to another because he believes that he will die soon. Gift Inter Vivos
September 25, 2022 A gift between the living in Latin means a gift between the living. Gift Letter
September 25, 2022 A gift letter is a piece of formal written correspondence that explicitly states that money received from a friend or relative is a gift. Gift in Trust
September 25, 2022 Trust gifts are commonly used to transfer wealth from one generation to the next by creating a trust fund. Grantor Retained Annuity Trust (GRAT)
September 25, 2022 Annuity preservation trusts (GRAT) are estate planning instruments in which the grantor freezes assets in a trust from which they receive an annual income. Grantor Trust Rules
September 25, 2022 A trust trust is a trust in which the individual creating the trust is the owner of the assets and property for income and inheritance tax purposes. Gross Estate
September 25, 2022 “Gross estate” is a term used to describe the total dollar value of a person’s assets at the time of their death. Healthcare Power of Attorney (HCPA)
September 25, 2022 A Health Care Power of Attorney (HCPA) is a legal document that gives a specific person the right to speak with others and make decisions on your behalf regarding your health, treatment, and care. Heir
September 25, 2022 An heir is a person who has a legal right to receive an inheritance when the deceased did not draw up a last will and testament. Holographic Will
September 25, 2022 Holographic wills can be an alternative to legal wills. Income in Respect of a Decedent (IRD)
September 25, 2022 Income in Respect of the Deceased (IRD) refers to non-taxable income that the deceased earned or was entitled to receive during their lifetime.