An oral will is a will that is not written down, but is instead spoken aloud by the person who is making the will (the “testator”). Oral wills are not valid in most jurisdictions, and must be made in front of witnesses who can attest to the fact that the will was spoken by the … Read more
A donee beneficiary is a person who is named in a trust or will to receive a gift of property from the settlor or testator. The donee beneficiary has no obligation to the settlor or testator and may freely dispose of the property as they wish. Why type of third-party beneficiary is a creditor beneficiary? … Read more
The Resolution Trust Corporation (RTC) was a government-sponsored entity created in the early 1990s to take over the assets of failed savings and loan associations. The RTC was wound down in the late 1990s, and its remaining assets were transferred to the Federal Deposit Insurance Corporation (FDIC). What is RPP payment? RPP payment is a … Read more
An estate freeze is a wealth planning strategy that is used to lock in the value of assets at their current appraised value. This is done by transferring ownership of the assets to a trust or another entity, such as a family limited partnership. The purpose of an estate freeze is to minimize estate taxes … Read more
A revocable beneficiary is an individual who is named in a trust or will as a beneficiary but who can be removed or replaced by the grantor at any time. This type of beneficiary designation allows the grantor to change their mind about who should receive their assets after they die, without having to go … Read more
An Irrevocable Income-Only Trust (IIOT) is a trust that can only be used to generate income for the beneficiaries. The terms of the trust cannot be changed, and the trust cannot be terminated. The IIOT is often used in estate planning to protect assets from creditors and estate taxes. What happens to an irrevocable trust … Read more
A Crummey power is a power of withdrawal that is given to a beneficiary of a trust. This power allows the beneficiary to withdraw funds from the trust up to a certain amount each year. The power is named after the case of Crummey v. Commissioner, in which the U.S. Tax Court held that a … Read more
A testamentary trust is a trust that is created by a will and that only comes into existence upon the death of the person who created the trust (the “grantor”). The trust property is generally distributed to the beneficiaries named in the trust after the grantor’s death. A testamentary trust can be used to achieve … Read more
A nuncupative will (also known as an “oral will”) is a will that is not written down, but is instead spoken aloud by the person who is making the will (the “testator”). Nuncupative wills are typically only used in situations where the testator is unable to write down their will, due to being in a … Read more
The cy pres doctrine is a legal doctrine that allows a court to modify the terms of a trust or will if the original purpose of the trust or will becomes impossible or impracticable to achieve. The doctrine is derived from the French phrase “cy pres comme possible,” which means “as near as possible.” The … Read more
