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Trusts & Estates Glossary: G
GENERAL POWER OF APPOINTMENT:
The power of the donee (the one who is given the power) to pass on an interest in property to whomsoever he pleases, including himself or his estate. See also Power of Appointment.
A tax imposed on any generation-skipping transfer at a flat rate computed with reference to the maximum federal estate rate applicable at the time of the transfer.
Any taxable distribution or taxable termination with respect to a generation-skipping trust or any direct skip from a transferor.
Any trust having beneficiaries who belong to two or more generations younger than the grantor.
GIFT CAUSA MORTIS:
A gift of personal property made by a person in expectation of death, completed by actual delivery of the property, and effective only if the donor dies; to be distinguished from gift inter vivos.
GIFT INTER VIVOS:
A gift of property by one living person to another. To make such a gift effective, there must be actual delivery of the property during the lifetime of the donor and without reference to his death.
A tax imposed by the federal government since 1932 and by some states on transfers of property by gift during the donor’s lifetime. Gifts, under this law, may include irrevocable living trusts.
A security which meets all requirements of the stock exchange for delivery to a broker upon sale.
GOODS AND CHATTELS:
The term commonly used to describe and identify all of the tangible (touchable) personal property in an estate, such as jewelry, furniture, tools, equipment.
A person to whom property is transferred by deed or to whom property rights are granted by means of a trust instrument or some other document.
A person who transfers property by deed or who grants property rights by means of a trust instrument or some other document. See also Settlor.
GRANTOR ANNUITY TRUST:
A trust in which the grantor retains the right to a set annual dollar amount (the annuity) for a fixed term and gives the principal to others, such as the grantor’s children, at the end of that term. If the grantor survives until the end of the annuity term, all of the trust principal will be excluded from the grantor’s estate for death tax purposes. A grantor annuity trust is sometimes referred to as a "GAT."
GRANTOR RETAINED INCOME TRUST:
A trust in which the grantor retains the right to all of the trust income for a fixed term and gives the principal to others, such as the grantor’s children, at the end of that term. If the grantor survives until the end of the income term, all of the trust principal will be excluded from the grantor’s estate for death tax purposes. A grantor retained income trust is often referred to as a "GRIT."
For purposes of the income taxation of trusts and estates, a trust in which the grantor or a third party,
because of certain rights to income or principal or certain power over the disposition of income and principal, is treated as the owner of the trust and taxed on the income thereof. Consequently, a grantor trust is not treated as a separate entity for income tax purposes.
All of a person’s property before debts, taxes, and other expenses or liabilities have been deducted; to be distinguished from net estate which is what is left after these items have been taken into account.