trusts and estates

Definition

A form of whole life insurance that combines aspects of universal life insurance and variable life insurance and provides for a death benefit and accrues cash value on a tax-deferred basis. Variable universal life insurance ("VUL") policies allow for flexibility in premiums, death benefits, and investment options.

Definition

A form of whole life insurance that accumulates cash value on a tax-deferred basis. Variable life insurance operates similarly to a mutual fund because the insured pays premiums that go into a separate investment account owned by the insured.

Definition

An estate that has no heirs, because they either do not exist or have renounced the estate. A vacant estate may escheat back to the state.

Definition

A form of life insurance that offers flexible premiums, adjustable death benefits, and the ability of the insured to make partial withdrawals from the cash value. Universal life insurance policies generate cash value as the insured’s premium payments are invested into the insurer’s investment fund.

Definition

Property acquired by a married person or couple in a non-community property state that would have been community property if it had been acquired in a community property state, e.g. California. If the married couple subsequently relocates to a community property state and either the couple divorces or one spouse dies, a court in that state may treat the property like community property when determining the property interests of the divorcing or surviving spouse(s).  

Definition

An indorsement — the placement of a signature on the back of a negotiable instrument — coupled with an additional phrase, e.g. "without recourse" or "for deposit only," limiting the liability of the indorser (signer) in the event the instrument is dishonored. A qualified indorsement makes it more difficult for a thief or embezzler to cash an instrument. Also spelled qualified endorsement. 

Rules for distributing property that belonged to someone who died intestate.  Intestacy rules usually take the form of sequential if-then statements that tell a probate court which heirs should be given priority in claiming the intestate decedent's property.

Definition

In estates and trusts law, documents — in particular, wills — that are important in carrying out a decedent's wishes. In addition to wills, valuable papers include power of attorney forms, title documents, stock certificates, and letters to be opened after one's death.

In trust law, a remainder interest is the part of the trust property that remains after the specific devises are given to the intended beneficiaries.

A self-declared trust is a situation in which an individual who has both legal and equitable ownership declares that she now owns the legal title for the benefit of another individual.