Credit Shelter Trust
Definition of "Credit shelter trust"
Vehicle through which the federal estate tax credit is protected from estate tax payment. The procedure is to leave the federal estate tax credit to the shelter trust with the trust established for the benefit of one's spouse (spouse receives the income from the trust and the assets of the trust are held for the benefit of the spouse). The assets of the trust are not subject to federal estate tax upon the death of the spouse since the assets are not in the spouse's estate at that time.
Popular Insurance Terms
Same as term Medical Examination: physical checkup required of applicants for life and/or health insurance to ascertain if they meet a company's underwriting standards or should be ...
Rejection by an insurance company of an application for a policy. ...
Payment for coverage that remains throughout the same premium-paying period. ...
Ownership of property by two or more persons who do not have rights of survivor ship. The share of a deceased tenant passes to that person's heirs and not to the other tenants. Because ...
Individuals who inherit assets as the result of being named in a will. ...
Addition to a property policy providing coverage for a specified amount. This endorsement is typically used for an unusual or valuable piece of property that does not fit standard ...
Fund that insures mortgages on homes for one to four families; also insures property improvement loans and loans to repair homes after a disaster. It is one of three funds operated by the ...
Individual permitted to enter property with the permission of the owner or the person who controls the property. There is no mutual profit motive; the licensee comes onto the property for ...
Restoration of a policy that has lapsed because of nonpayment of premiums after the grace period has expired. In life insurance the reinstatement time period is three years from the premium ...
Have a question or comment?
We're here to help.