cum testament annexo.
Certified Application Assistants. Court Appointed Attorney.
California Automobile Assigned Risk Program.
California Civil Jury Instructions.
Centralized Authorization File.
Employee benefit arrangements in which employees can select from a range of benefits. This is sometimes referred to as a Section 125 plan.
A California State version of COBRA.
California adoption of the Gramm-Leach-Bliley Act.
California Regional Extension Center Project.
California Probate Code, Structure of
Division 1 – Preliminary Provisions and Definitions
Part 1 – Preliminary Provisions
Part 2 – Definitions
Division 2 – General Provisions
Part 1 – Effect of Death of Married Person on Community and Quasi-Community Property
Part 2 – Surviving Spouse’s Right in California Real Property of Non-domiciliary Decedent
Part 3 – Contractual Arrangements Relating to Rights at Death
Part 4 – Establishing and Reporting Fact of Death
Part 5 – Simultaneous Death
Part 6 – Distribution Among Heirs or Beneficiaries
Part 7 – Effect of Homicide or Abuse of an Elder or Dependent Adult
Part 8 – Disclaimer of Testamentary and Other Interests
Part 9 – Trust Company as Fiduciary
Part 10 – Immediate Steps Concerning Decedent’s Tangible Personal Property and Safe Deposit Box
Part 11 – Fiduciaries’ Wartime Substitution Law
Part 12 – Probate Referees
Part 13 – Litigation Involving Decedent
Part 14 – Powers of Appointment
Part 15 – Deposit of Estate Planning Documents With Attorney
Part 16 – Jurisdiction
Part 17 – Legal Mental Capacity
Part 18 – Right to Trial
Part 19 – Conveyance or Transfer of Property Claimed to Belong to Decedent or Other Person
Division 3 – General Provisions of a Procedural Nature
Part 1 – General Provisions
Part 2 – Notices and Citations
Part 3 – Appeals
Division 4 – Guardianship, Conservatorship, and Other Protective Proceedings.
Part 1 – Definitions and General Provisions
Part 2 – Guardianship
Part 3 – Conservatorship
Part 4 – Provisions Common to Guardianship and Conservatorship
Part 5 – Public Guardian
Part 6 – Management or Disposition of Community Property Where Spouse Lacks Legal Capacity
Part 7 – Capacity Determinations and Health Care Decisions for Adult Without Conservator
Part 8 – Other Protective Proceedings
Part 9 – California Uniform Transfers to Minors Act
Division 4.5 – Powers of Attorney
Part 1 – Definitions and General Provisions
Part 2 – Powers of Attorney Generally
Part 3 – Uniform Statutory Form Power of Attorney
Part 4 – Judicial Proceedings Concerning Powers of Attorney
Part 5 – Judicial Proceedings Concerning Powers of Attorney [REPEALED]
Division 4.7 – Health Care Decisions
Part 1 – Definitions and General
Part 2 – Uniform Health Care Decisions Act
Part 3 – Judicial Proceedings
Part 4 – Request Regarding Resuscitative Measures
Part 5 – Advance Health Care Directive Registry
Division 5 – Non-probate Transfers
Part 1 – Provisions Relating to Effect of Death
Part 2 – Multiple-Party Accounts
Part 3 – Uniform TOD Security Registration Act
Part 4 – Non-probate Transfer to Former Spouse
Part 5 – Gifts in View of Impending Death
Division 6 – Wills and Intestate Succession
Part 1 – Wills
Part 2 – Intestate Succession
Part 3 – Family Protection
Part 4 – Escheat of Decedent’s Property
Division 7 – Administration of Estates of Decedents
Part 1 – General Provisions
Part 2 – Opening Estate Administration
Part 3 – Inventory and Appraisal
Part 4 – Creditor Claims
Part 5 – Estate Management
Part 6 – Independent Administration of Estates
Part 7 – Compensation of Personal Representative and Attorney for the Personal Representative
Part 8 – Accounts
Part 9 – Payment of Debts
Part 10 – Distribution of Estate
Part 11 – Closing Estate Administration
Part 12 – Administration of Estates of Missing Persons Presumed Dead
Part 13 – Non-domiciliary Decedents
Division 8 – Disposition of Estate Without Administration
Part 1 – Collection or Transfer of Small Estate Without Administration
Part 2 – Passage of Property to Surviving Spouse Without Administration
Division 9 – Trust Law
Part 1 – General Provisions
Part 2 – Creation, Validity, Modification, and Termination of Trusts
Part 3 – Trustees and Beneficiaries
Part 4 – Trust Administration
Part 5 – Judicial Proceedings Concerning Trusts
Part 6 – Rights of Third Persons
Part 7 – Uniform Prudent Management of Institutional Funds Act
Part 8 – Payment of Claims, Debts, and Expenses From Revocable Trust of Deceased Settlor
Division 10 – Proration of Taxes
Division 11 – Construction of Wills, Trusts, and Other Instruments
Part 1 – Construction of Wills, Trusts, and Other Instruments
Part 2 – Perpetuities
Part 3 – No Contest Clause
Part 3.5 – Limitations on Transfers to Drafters and Others
Part 3.7 – Presumption of Fraud or Undue Influence
Part 4 – Abatement
Part 5 – Compliance With Internal Revenue Code
Part 6 – Family Protection: Omitted Spouses and Children
Part 7 – Contracts Regarding Testamentary or Intestate Succession
In California the calendar rule is used in determining which insurance policy is primary when more than one applies and both have COB provisions. Under this rule the policy on the insured with the earliest birthday will be primary.
California Trust Law
Contained in Probate Code §§15000-19403.
Certified Anti-Money Laundering Consultant.
Allows the insurer to cancel or terminate the policy at any time by providing written notice to the insured. Premiums can also be increased. This option is the least desirable and least expensive.
Isa form of physical revocatory act to a will that traditionally affects the words on the paper.
Certified Asset Protection Analyst.
See Mental Capacity.
The amount by which the selling price of a capital asset exceeds its tax basis.
Capital Gains Tax Basis
The cost of the asset plus amounts expended for improvements, less tax deductions made ot taken during the term of ownership.
The maximum amount payable in one sum in the event of accidental dismemberment. It is usually a percentage of the principal sum. These terms are used in an accidental death and dismemberment policy6 or rider (AD&D).
In managed care, a fixed or flat fee paid per subscriber, usually monthly, to a health care provider to deliver the health services agreed upon to any covered person. This term is only used with HMOs.
Capital Asset Pricing Model.
Is a possible consequence of an invalid attempt to exercise a general power of appointment.
California Association of Realtors.
Comprehensive Assessment and REview for long-term care Services.
California Restraining and Protective Orders System.
Generally for gifts of property made after 1976, the done takes the basis of the donor, with some increase in the basis if the donor paid gift tax on the transfer.
See Carryover Provision.
In major medical policies, allowing an insured who has submitted no claims during the year to apply any medical expenses incurred in the last three months of the year toward the new calendar year’s deductible. Sometimes this is referred to as a carryover deductible.
The professional arrangement and coordination of health services through assessment, service plan development, and monitoring. It is used when there is a catastrophic injury or illness (stroke, spinal cord), and for chronic conditions.
Certified Access Specialist. (ADA related).
California Building Code.
Congressional Budget Office.
Civ. Code. Subchapter C Corporation.
Chartered Compliance Analyst. Chief Counsel Advice.
Coordinated Care Initiative.
Coordinated Care Organization.
Code of Civ. Proc.
California Courts Protective Order Registry.
California Code of Regulations.
Certified Commercial Real Estate Appraiser of the National Association of Real Estate Appraisers.
Carry Concealed Weapon permit.
Certificate of Deposit.
Certificate of Deposit Account Registry Service.
Child Disability Benefits.
Consumer Due Dilligence.
Consumer Driven Health Care.
Certificate of Degree of Indian Blood.
Charitable Distribution Trust.
California Earthquake Authority.
Continuing Education of the Bar.
Certified Elder Law Attorney.
Chief Executive Officer.
Certificate of Independent Review
A certificate created by an different attorney approving gift to drafting attorney from drafting attorney’s client. Attorney doing estate plans may not receive anything under the estate plan absent certain listed relationship, or the Certificate of Independent Review.
Is one form of spendthrift trust provision. Also known as a forfeiture provision.
Cestui Que Trust
Certified Financial Analysts.
Court of Federal Claims.
Certified Fraud Examiner.
Certified in Financial Forensics.
California Family Law Specialist.
Chief Financial Officer.
Certified Financial Planner.
Consumer Financial Protection Bureau.
Code of Federal Regulations.
California Family Rights Act.
Counter-Terrorist Financing. (Not CTF as expected.)
Commodity Futures Trading Commission.
Charitable Gift Annuity.
Chartered Global Management Accountant.
Charitable Giving Supplement.
Child’s Gifting Trust.
Military medical plan for active or retired military and their families.
Charitable Lead Trust
A trust designed to reduce beneficiaries’ taxable income by first donating a portion of the trust’s income to charities and then, after a specified period of time, transferring the remainder of the trust to the beneficiaries.
The whole idea of a charitable lead trust is to reduce taxes upon the estate left by the deceased. This is done by donating to charities from the estate until all taxes are reduced. Once this is accomplished, the estate is then transferred to the beneficiaries, who typically will face lower taxes.
Structuring donations into a unified plan so that donors maximize for themselves, their families, and their worthy causes the tax and nontax benefits of their gifts while they are alive and after their death.
Charitable Remainder Trust
A special tax-exempt irrevocable trust arrangement written to comply with federal tax laws and regulations. A kind of trust that pays income to the trust maker for the rest of the trust-maker’s life; whatever is left in the trust when the trust maker dies passes to the charity designated in the trust agreement.
An entity organized and operated for religious, charitable, scientific, literary, or educational purposes.
Child Health and Disability Prevention.
Chartered Financial Consultant.
Children are (1) the natural issue of the testator, unless legally adopted by another; (2) persons legal adopted by the testator; (3) issue of female testator, unless legally adopted by another; (4) issue of a man born out of wedlock but acknowledged by him; and (5) stepchildren and foster children if said relationship began during child’s minority, continued throughout their lifetimes, and there’s convincing evidence the child(ren) would have been adopted but for some legal barrier.
A trust that is created for minor children.
Children’s Health Insurance Program.
Charitable Owned Life Insurance.
Christiansen v. Commissioner, Estate of, 586 F.3d 1061 (8th Cir. 2009)
Tax court upheld a defined value clause under a formula disclaimer explicitly finding these clauses did not violate public policy.
Critical Illness. An accelerated benefit policy rider.
Chronic Illness Agreement.
Chronic Illness Access Agreement.
California Insurance Code. Captive Insurance Company.
Chronic Illness Conversion Agreement.
California Insurance Guarantee Association.
Certified Investment Management Analysts.
Certified Investment Management Consultant.
Change In Ownership.
Common Interest Real estate Association. This is what the IRS calls Home Owners Associations, Condominium Associations, Property Owner Associations, Time Share Associations, etc.
A U.S. Treasury circular containing regulations that govern a CPA’s practice before the Internal Revenue Service.
Certified International Tax Analyst.
Certificate of Interim Trail Use or Abandonment.
California Center for Judicial Education and Research.
Refers to the existence of an unfulfilled purpose of the trust that would prevent voluntary termination of the trust, even with the consent of all trust beneficiaries.
As defined in California Probate Code section 9000:
(a) is “a demand for payment for any of the following, whether due, not due, accrued or not accrued, or contingent, and whether liquidated or unliquidated: (1) Liability of the decedent, whether arising in contract, tort, or otherwise. (2) Liability for taxes incurred before the decedent’s death, whether assessed before or after the decedent’s death, other than property taxes and assessments secured by real property liens. (3) Liability of the estate for funeral expenses of the decedent.
(b) “Claim” does not include a dispute regarding title of a decedent to specific property alleged to be included in the decedent’s estate.
Clark v. Rameker, 573 US ___ (2014)
The Supreme Court held that an inherited IRAs funds are not “retirement funds” within the meaning of the Code, based on 3 characteristics of the inherited IRA account holder: (1) the account holder may never make additional contributions to the account, (2) the account holder is required to withdraw money from the account, no matter how far the holder is from retirement, and (3) the account holder may withdraw the entire account funds within 5 years of inheriting or take annual RMDs. Therefore, an inherited IRA’s funds are not exempt from creditors in a bankruptcy proceeding.
Group of beneficiaries designated by status. A grouping of persons are placed into a “class” for the purpose of determining an underwriting or rating group into which a particular risk must be placed.
Is a disposition to a group of beneficiaries defined by a common characteristic, usually with each member of the class taking an equal share. Class closing rules relate to these gifts.
Group of beneficiaries designated by status. A grouping of persons are placed into a “class” for the purpose of determining an underwriting or rating group into which a particular risk must be placed.
Charitable Lead Annuity Trust.
Chief Law Enforcement Officer.
California Law Enforcement Telecommunications System.
California Life and Health Insurance Guaranty Association.
A situation where covered insured must select one primary care physician. That physician is the only one allowed to refer patient to other health care providers within the plan. Also called a gatekeeper model.
When a physician provides services to only members or subscribers of a health organization and contractually is not allowed to treat other patients.
California Licensed Professional Fiduciary.
California Law Revision Commission.
(California) Certified Legal Specialty.
Charitable Lead Trust.
Charitable Lead UniTrust.
Chartered Life Underwriter.
California Medical Association.
California Confidentiality of Medical Information Act.
Centers for Medicare (and Medicaid) Services.
Typically, a flat dollar amount (could be a percentage) of costs of care paid by the insured before service is rendered.
When two or more parties own the same property at the same time and the property remains undivided.
Another person, often a family member, who serves with the trustee in helping to make decisions concerning the trust.
Coordination of Benefits.
Consolidated Omnibus Budget Reconciliation Act of 1985. Continuation of insurance benefits.
Cancellation Of Debt. Considered income by the IRS.
Cash Or Deferred Arrangement plan. Also known as 401(k) plan.
A change or addition to an existing will. A will which does not revoke a prior will and is at least in part compatible with it. It requires the same execution formality as does a will.
This is technically known as a participation requirement. Once the insured has met their deductible, the insured and insurer share in an agreed proportion of covered expenses. For example, if the coinsurance is written 80/20, the insurer agrees to pay 80% and the insured pays the remaining 20% of the covered expense. Major medical and PPOs and POS have coinsurance requirements.
Cost Of Living.
Cost Of Living Adjustment.
Property pledged as security for a debt.
Relatives other than ancestors or descendants, including siblings, aunts, uncles, and cousins. Also known as collaterals.
See Collateral Relatives.
Commercial Health Insurers
Insurance companies that function on the reimbursement approach, which allows policyholders to seek medical treatment, then submit charges to the insurer for reimbursement. This includes stock, mutual, and some casualty insurers.
Is the function of a fiduciary mixing fiduciary assets with its own, rather than clearly marking them as subject to the fiduciary relation. It is the converse of earmarking or segregation and constitutes a breach of fiduciary duty.
Commissioner v. _________
See under other party’s name.
When two or more people, including the testator and a beneficiary, die in the same accident and it is impossible to tell who died first.
Property that is held by two or more parties under one of the forms of co-ownership, i.e., joint tenancy, tenancy in common, tenancy by the entirety, or community property.
Often incorporated into their wills or living trusts by parents, they hold assets in one common or “pot” trust for the benefit of all of their children until some stated event occurs. It ensures that all of the parents’ assets are available to care for all of the children in all circumstances until all the children are old enough to care for themselves.
Common Trust Fund
A fund maintained by a professional trustee for investment of the assets of multiple trusts administered by the trustee in order to reduce costs and to diversify the investments.
All property acquired by a married couple, except for gifts or inheritance received by one of them. Separate property may become community property by agreement of the couple. The community property states include: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Each state has int own rules regarding how and when a couple acquire community property.
Community Property With Right of Survivorship
Property owned by a married couple the title document to which states it is “community property with right of survivorship.” When one spouse dies, the other inherits the decedent’s 1/2 interest without probate.
Is the process by which the value of a present and a future interest is determined and each is immediately satisfied by distribution of the underlying property in the proper proportions as between the two owners.
Interest that accrues on principal and unpaid prior interest.
Comprehensive Major Medical
Comprehensive insurance plans which cover virtually all medical expenses, in or out of the hospital.
Comes in several forms: Joint Tenancy, Tenancy By The Entireties, and Tenants In Common. It entails undivided mutual ownership of property, sometimes with probate avoidance and rights of survivorship at death, but not necessarily..
A bequest that requires certain pre-exiting conditions or occurrence of some itemized events before the bequest can become effective.
Is contingent on occurrence or non-Occurrence of an event or fact. Basically the same as dependent relative revocation.
A will contingent on the occurrence or non-occurrence of an event or fact to be intended as the maker’s final wishes. “If I do not recover from surgery” would be a classic example of a conditional will.
Allows the insurer to terminate the coverage only in the event that a condition stated in the policy is not being met. The condition could be reaching a certain age, retirement, or losing employment. Premiums can be increased by classification.
Used with a presumption that can arise when a will or gift is challenged on the basis of undue influence. It may also serve as a basis for an exception to the requirement that trusts of land be in writing.
Conflict Of Laws
Describes the issue of which state’s laws will be used to resolve the substance of an issue, and which state’s choice of law rules will be applied to make that decision.
A copy of a document filed with the court that has been stamped by the court clerk with the date/time of filing.
Refers to the relationship between people with a common ancestor. Examples: parent, grand parent, great grand parent, etc., uncle/aunt, 1st cousin, 2nd cousin, etc, and various cousin various generations removed.
A person whom a judge has decided is unable to care for himself
or herself or to manage his or her own financial affairs and for
whom a conservator has been appointed.
In the United States, a conservation easement (also called a conservation covenant or conservation restriction) is an encumbrance — sometimes including a transfer of usage rights (easement) — which creates a legally enforceable land preservation agreement between a landowner and a government agency (municipality, county, state, federal) or a qualified land protection organization (often called a “land trust“), for the purposes of conservation. It restricts real estate development, commercial and industrial uses, and certain other activities on a property to a mutually agreed upon level. The property remains the private property of the landowner.
The decision to place a conservation easement on a property is strictly a voluntary one where the easement is sold or donated. The restrictions of the easement, once set in place, “run with the land” and are binding on all future owners of the property (in other words, the restrictions are perpetual). The restrictions are spelled out in a legal document that is recorded in the local land records and the easement becomes a part of the chain of title for the property. Appraisals of the value of the easement, and financial arrangements between the parties (land owner and land trust), generally are kept private.
The primary purpose of a conservation easement is to protect land from certain forms of development or use. Lands for which conservation easements may be desirable include agricultural land, timber resources, and/or other valuable natural resources such as wildlife habitat, clean water, clean air, or scenic open space. Protection is achieved primarily by separating the right to subdivide and build on the land from the other rights of ownership. The landowner who gives up these “development rights” continues to privately own and manage the land and may receive significant state and federal tax advantages for having donated and/or sold the conservation easement. Perhaps more importantly, the landowner has contributed to the public good by preserving the conservation values associated with their land for future generations. In accepting the conservation easement, the easement holder has a responsibility to monitor future uses of the land to ensure compliance with the terms of the easement and to enforce the terms if a violation occurs.
Although a conservation easement prohibits certain uses by the landowner, such an easement does not make the land public. On the contrary, many conservation easements confer no use of the land either to the easement holder or to the public. Furthermore, many conservation easements reserve to the landowner specific uses which if not reserved would be prohibited. Some conservation easements confer specific uses to the easement holder or to the public. These details are spelled out in the legal document that creates the conservation easement.
A party appointed by a court to manage the financial affairs of an incompetent or incapacitated individual.
Conservator of the Estate
A person or organization appointed by a judge to manage the financial affairs of another person (the conservatee) whom a judge has decided is unable to do so.
Conservator of the Person
A person or organization appointed by a judge to provide for the personal care and protection of another person (the conservatee) whom a judge has decided is unable to do so.
Conservatorship is a legal term referring to a person who has been deemed gravely disabled by the court and unable to meet their basic needs of food, clothing, and shelter. There are two types of conservatorships, Lanterman Petris-Short (Lanterman Petris Short act of 1967, referred to as LPS) and Probate conservatorships. They are governed by the state’s individual laws. In California, they are governed by the California Probate Code, and Welfare and Institutions Codes. Some states or jurisdictions refer to it as a guardianship, or even a trustee, instead of a conservator.
A formal or informal document that contains a systematic
assessment of the conservatee’s needs and a plan to meet those
needs, based on the conservatee’s physical and mental condition
at present and for the foreseeable future and the resources
available from the conservatee’s estate and other available sources to finance the plan.
In legal terms, consideration is an exchange of something of value on which a contract is based. When both parties exchange consideration, the contract is validated. In health insurance, the insurance company exchanges the promises in the policy for a two=part consideration from the insured. A health insurance contract is valid only if the insured provides consideration in the form of (1) the full minimum premium required, and (2) the statements made in the application.
Is the process by which courts construe a document’s meaning, looking to discern intent. As compared to Interpretation this is more about what the maker meant to say, instead of the meaning of what the maker did in fact say. Sometimes referred to as “reading between the lines.”
Arises as a judicial equitable remedy to prevent unjust enrichment.
Consumer Driven Health Care
Refers to high deductible health insurance plans that allow members to use personal HSAs.
To challenge the legal validity of a will or a trust.
Any person entitled to inherit property under the terms of a will which specifies a contingency.
Contingent Beneficiary Provision
Directs distribution of property undisposed of in a trust when all the named beneficiaries are deceased.
A future interest that may not become possessory. Example “to A for life, then to his children who survive him.”
A form of ownership generally referring to a person’s right to direct the disposition of an asset at death as part of the agreement that creates the asset itself; such as a life insurance policy.
For purposes of calculating a taxpayer’s charitable income tax deduction, a taxpayer’s adjusted gross income not including any net operating loss carry-back deduction.
This means that the employee and employer share in the premium costs. In a contributory plan the employee could be paying a small portion or the entire premium. This plan requires 75% of the eligible employees to be enrolled.
An account – usually a bank account – that has been opened in joint names but only for the convenience of one of the joint owners and not with the intent that the noncontributing owner receive the balance in the account. As a result, the account could be part of a deceased owner’s probate estate.
Convenience Joint Tenancy
Is created as a means of providing property management without intending to create property rights in the other joint tenant(s), usually because the property owner did not know to use a durable power of attorney, and usually can be undone because of the lack of intent to make a gratuitous transfer of ownership rights.
All group policies must offer conversion, when the group coverage is terminated, to an individual policy. If the covered member/employee converts within the first 31 days of being terminated from the plan, then no proof of insurability will be required. The converted plan is not the same as the original. It usually contains lower benefit amounts and substantially higher premiums. Group AD&D does NOT offer conversion.
Chief Operations Officer.
Charging Order Protection Entity.
California State Bar Standing Committee On Professional Responsibility and Conduct.
An organization such as a bank or trust company that receives, holds, and manages money and other property for a fee from members of the public under a trust agreement.
Corporate Trusteed Trust
A trust which designates a corporation as trustee.
The res of a trust, as distinguished from its income.
Certificate Of Service.
A situation where covered persons pay a portion of the health costs, such as deductibles, coinsurance, or copayment amounts.
Two or more people (or entities) who are responsible for the joint management of a trust.
An investigator employed by the court to assist judges in conservatorship cases. He or she visits and speaks with people
involved in a conservatorship, including the proposed conservatee
and the proposed conservator, and reports his or her findings back to the court. Once a conservatorship has been started, the court investigator will visit the conservatee periodically to see how things are going. A court investigator is also sometimes called a probate investigator.
Company designated by the California Rules of Court, rule 3.670(1) as the provider that must be used for telephonic court appearances.
Community Property with right of Survivorship.
Certified Public Accountant.
Chartered Property Casualty Underwriter.
Consumer Price Index.
Consumer Price Index – Medical Component.
Consumer Price Index for All Urban Consumers.
Criminal Protective Order.
Charities Pooled Trusts.
Certified Risk Analyst.
Charitable Remainder Annuity Trust.
Certified Regulatory Compliance Manager (American Bankers Association).
Certified Real Estate Appraiser of the National Association of Real Estate Appraisers.
Credit Insurance / Credit Health / Credit Disability
An insurance policy designed to pay insured’s creditors when they are disabled due to illness or injury, and some pay off the loan in the event of an accidental death. An A&H credit policy will only pay off the loan balance if death is the result of an accident only, and will pay your loan payment if you are disabled.
Is an insurance policy that would pay off a loan in the even of death by either natural causes or an accident. An A&H credit policy will only pay off the loan balance if death is the result of an accident only, and will pay your loan payment if you are disabled.
Credit Shelter Trust
A type of trust that allows a married investor to avoid estate taxes when passing assets on to heirs. The trust is structured so that upon the death of the investor, the assets specified in the trust agreement (up to a specified maximum dollar value) are transferred to the beneficiaries named in the trust (normally the couple’s children). However, a key benefit to this type of trust is that the spouse maintains rights to the trust assets and the income they generate during the remainder of his or her lifetime.
This type of trust is also referred to as an “AB Trust”.
In certain circumstances, such as the need to fund healthcare expenses, the surviving spouse may even tap into the principal of the trust assets, not just their generated income. When the surviving spouse eventually dies, the assets are transferred wholly to the beneficiaries (children) without any estate taxes levied. This can amount to significant tax savings and can be very valuable, especially considering that the surviving spouse essentially maintains full use of the assets while they are in the trust anyway.
Any person or entity to whom decedent owed money at the time of his/her death, and any person or entity that the estate owes money.
College Retirement Equities Fund.
These types of insurance plans pay a specified amount upon diagnosis or treatment of a few specified illnesses stated in the policy, such as cancer, heart attack, or stroke.
A type of buy-sell agreement in which the remaining co-owners agree to purchase the interest of a deceased or departing owner.
Certified Risk Professional. Conservation Reserve Program.
Center for Retirement Research at Boston College.
Charitable Remainder Trust.
Charitable Remainder UniTrust.
Charitable Remainder Trust.
The rights of the beneficiaries of an irrevocable life insurance trust (ILIT) to withdraw money (for a noticed but short period of time) as it is contributed (in order to make premium payments) to the trust thus making the contributions to the ILIT present gifts thus avoiding the grantor interest in the trust thus defeating the purpose of the ILIT.
Crummey powers (named after a man named Crummey whose successful lawsuit validated the technique) are used in connection with Irrevocable Life Insurance Trusts (ILITs) in order to have gifts to the trust qualify for the gift tax annual exclusion. The exclusion is currently $12,000 per donor per donee per year and is indexed for inflation. Only gifts of a “present interest” qualify for the exclusion, and, without Crummey powers, gifts to an ILIT would otherwise be deemed to be gifts of a “future interest”, since the very essence of a trust is to defer enjoyment of the property in the trust until some future time.
Crummey powers need to be carefully drafted and implemented, and we here at Provada are intimately familiar with exactly what is needed http://www.theproducersedge.com/wp-content/uploads/2007/09/treasure-chest.jpgin order to make them fully effective. The holders of Crummey powers are typically the primary beneficiaries of a trust, but sometimes these powers need to be given to secondary beneficiaries as well in order to have enough annual exclusions to cover the full life insurance premiums. This can be accomplished by following the “Cristofani” guidelines (Cristofani was another successful taxpayer), and also requires careful drafting and implementation. We are also knowledgeable in this area.
Charitable Remainder UniTrust.
Corporate Shares. Child Support. Community Spouse.
Customer Service Center.
Community Spouse’s Minimum Maintenance Needs Allowance.
Commissioners Standard Ordinary table. Mortality tables. Most recent are 1980 and 2000.
Community Spouse Resource Allowance.
Community Spouse Resource Deduction.
Civil Service Retirement System.
Credit Shelter Trust, aka bypass trust.
Cash Surrender Value.
California Statutory Will.
Common Trust. Children’s Trust.
Cum Testamento Annexo. Latin meaning “with the will annexed.”
Certified Trust and Estate Planner Designation.
Certified Trust and Financial Advisor.
Certified Transfer Pricing Specialist.
Curci Investments, LLC v. Baldwin (2017) 14 Cal.App.5th 214.
James P. Baldwin borrowed $5,500,000 from Curci’s predecessor pursuant to a promissory note. When the note came due, Baldwin had not made any payments, and Curci filed suit against Baldwin. After a payment plan fell through, Curci obtained a judgment against Baldwin in the amount of about $7,200,000, including interest, attorney’s fees, and costs. Curci, unable to recover any part of the judgment, tried an enforcement procedure allowed in California – adding, by simple motion, one of Baldwin’s investment companies, JPBI Investments, LLC. JPBI, LLC, a Delaware LLC, had as its exclusive purpose to hold and invest Baldwin and his wife’s cash balances. Baldwin owned 99% of JPNI, and his wife owned the other 1 %. [Appears this is really a single member LLC.] Baldwin was the manager and the CEO of JPBI and, in these roles, Baldwin determined when, if at all, JPBI made monetary distributions to its members. The court found that “reverse piercing of the corporate veil” was warranted given these facts.
An estate in common law in the lands and tenements to which a man is entitled on the death of his wife.
The interest which a husband has in his wife’s lands after a child is born who may inherit but before the wife dies.
A fiduciary designated to handle property under the Uniform Transfers to Minors Act.
California Uniform Transfers to Minors Act. Prob. C. §§3900-3925.
Clean Water Act.
Chartered Wealth Manager.
Cy pres (pronounced “see-pray”) is a legal doctrine that first arose in courts of equity. The legal French term literally means “so near/close” and can be translated as “as near as possible” or “as near as may be.” The doctrine originated in the law of charitable trusts, but has been applied in the context of class action settlements in the United States.
When the original objective of the settlor or the testator became impossible, impracticable, or illegal to perform, the cy-près doctrine allows the court to amend the terms of the charitable trust as closely as possible to the original intention of the testator or settlor to prevent the trust from failing.