Fiduciary Terms

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Ascertainable beneficiary -- A beneficiary who is designated with sufficient clarity and certainty to be capable of identification, although not necessarily by name. This means that the beneficiaries do not have to be alive at the time the trust is created, they have to come into existence before the trust terminates.

Beneficiary -- According to Code Sec. 643(c), a beneficiary is an heir, legatee, or devisee. More commonly, the beneficiary is a person who will benefit in the present or future from the transfer of assets by will or other arrangement.

Corpus -- The property and other assets that have been transferred to the trust. Corpus is also referred as principal.

Fiduciary -- The trustee of a trust or the executor, personal representative, or a person in possession of property of a decedent's estate. The fiduciary’s responsibility includes following the terms of the trust or will and exercising due care while acting primarily for the benefit of the beneficiary(ies).

Grantor -- An individual who establishes or funds the trust with money, property or any other asset.

Grantor Trust--any trust over which the Grantor or other owner retains the power to control or direct the trust's income or assets. The income of the trust will be taxed to the grantor rather than to the trust.

Inter Vivos Trust -- A trust established during the trust creator’s life.

Rule against Perpetuities -- No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the time of the creation of the interest.

Testamentary Trust -- A trust established by the terms of a Will. (Therefore, after the creator’s death)

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