Question

Define each of the following terms:

1. Inter vivos trust.

2. Charitable remainder trust.

3. Remainderman.

4. Executor.

5. Homestead allowance.

Answer 1

.1 Inter vivos trust.:

Inter vivos trust is a trust created for estate planning and transfer on the death of an individual , while the individual is still alive .

These type of trusts are also called living trust and can be revocable .

A Testamentory trust is a trust created after the death of an individual , based on the will and testament.

2. Charitable remainder trust:

Charitable reminder trust is a tool for reduction of tax . It is a irrevocable trust which disperses income to beneficiaries for a specified period of time and thereafter donates the remaining balance to a designated charity.

3. Remainderman

Remainderman is the person who inherits or is entitled top inherit a property on the death of the owner.

If one gifts his property to A and on his death to B then B is the remainderman who is entitled to inherit the remainder of the property on the death of A.

4. Executor.

Executor in legal terminology is the person appointed to execute the will of a person upon his death as per the wishes of the deceased. Executor could be appointed by the deceased, when he was alive or by a court if executor was not appointed by the deceased in his lifetime

5. Homestead allowance.

Homestead allowance is an allowance given from the estate of the deceased to the surviving spouse or the minor children.

Homestead allowance is given in lieu of any share in the property . If the share in the property is too low (Lower than the homestead allowance) , the homestead allowance can be given for the difference.