A gift inter vivos (literally, “gift between the living”) is a gift made during a person’s lifetime, as opposed to a testamentary gift, which is one that is made in a person’s will. Gifts inter vivos can take many different forms, including cash, property, stocks, or other assets. What is a gift in trust law? … Read more
Income in Respect of a Decedent (IRD) is income that a decedent would have received had they not died. This includes items such as wages, bonuses, commissions, and other forms of earned income. IRD is generally taxed at the decedent’s marginal tax rate. However, there are some special rules that apply to IRD, such as … Read more
An A-B trust is a trust that is created for the benefit of two people, typically a husband and wife. The trust is divided into two parts, the A trust and the B trust. The A trust is typically funded with the husband’s assets, and the B trust is typically funded with the wife’s assets. … Read more
A testamentary will is a will that is only valid after the death of the person who made it. The will must be in writing, and it must be signed by the person making the will (the “testator”) in the presence of two witnesses. The witnesses must also sign the will. A testamentary will is … Read more
A charitable remainder trust is an irrevocable trust that provides income to one or more non-charitable beneficiaries for a period of time, after which the trust’s assets are distributed to one or more charitable beneficiaries. The most common type of charitable remainder trust is the charitable remainder annuity trust, which pays a fixed annuity to … Read more
A conservatorship is a legal proceeding in which the court appoints a person to manage the financial affairs of another person who is unable to do so. The conservator is typically a family member, friend, or professional fiduciary. The conservatorship proceeding is initiated by the filing of a petition with the court. The court will … Read more
Legacy planning is the process of creating a plan to ensure that your assets are distributed according to your wishes after you die. It involves making decisions about how your assets will be managed and distributed, and who will receive them. Legacy planning can also include making arrangements for your funeral and other final expenses. … Read more
Pari passu is a Latin term meaning “equal footing.” In the context of trust and estate planning, it refers to the principle that all beneficiaries of a trust or estate should receive their share of the assets equally and without preference. This principle is often violated when beneficiaries are given unequal distributions of assets or … Read more
A trust that is intentionally defective for tax purposes. An IDGT is typically used in estate planning to minimize gift and estate taxes. The grantor of an IDGT retains certain powers, such as the power to revoke the trust, which causes the trust to be treated as part of the grantor’s estate for tax purposes. … Read more
A life estate is an estate in which the owner has the right to possess and use the property for the duration of their life, after which it reverts back to the original owner or their heirs. How does a life estate work in NY? A life estate is a type of ownership interest in … Read more
