Clifford Trust
Definition of "Clifford trust"
Up to 1986, arrangement to provide a personal trust while the settlor is still alive. The income is paid to named children, who enjoy lower income taxes. After 10 years and a day, the property reverts to the original owner. The Internal Revenue Service had ruled that the income from the property in trust is not income to the original owner. The Clifford Trust was eliminated under the tax reform act of 1986.
Popular Insurance Terms
Value of an insurance company or other company that consists of capital and surplus and an estimated value for business on the company's books. ...
Investment strategy that advocates the transfer of amounts from one category of investment to another category according to a perception of how each of these categories of investments will ...
Premium paid by an insured business to an insurance company from which the company subtracts charges for the cost of putting a policy on its books, premium taxes, and profit. The remainder ...
Term used for a general class of insurance such as life insurance, property insurance, or workers compensation insurance. ...
Asset excluded from the financial statements submitted to the state insurance examiner because the asset has virtually no value in meeting claims in the event the insurance company must be ...
Immediate annuity under which one premium payment is made and the annuity is paid up (no further premium payments are required). ...
Provision in many business and personal policies that loss or damage to one of a pair or set of individual items does not represent the loss of the pair or set. For example, the loss of one ...
Coverage that protects a business, up to the policy limits, if actions or non-actions of the insured result in a legally enforceable claim for bodily injury, property damage, or personal ...
From favor payment by an insurance company to an insured even though the company has no legal liability. The company makes such a payment for goodwill purposes. ...
Have a question or comment?
We're here to help.