Qualified Domestic Trust
Definition of "Qualified domestic trust"
Type of trust established for the purpose of permitting the federal estate marital deduction for assets transferred from the decedent's estate to a surviving spouse who is not a citizen of the United States. The trustee for this trust must be a United States corporation or citizen, and if the assets are in excess of $2,000,000, the trustee must be a United States bank. Income from this trust can be distributed to the surviving spouse without incurring any estate tax consequences; however, any distributions of principal are subject to the federal estate tax. Upon the death of the surviving spouse and/or termination of the trust, the distributed principal of the trust is subject to federal estate tax.
Popular Insurance Terms
Standards set by the various state regulatory authorities that determine how financial statements must be prepared for regulators. The states are responsible for making certain that ...
Effort of a poor risk to seek insurance coverage. The onset of a health problem such as heart disease, for example, may prompt a person to apply for life insurance before seeking medical ...
Payments in a defined benefit plan. Benefits are allocated to the pension plan participants as premiums are received by the insurance company. Since the benefits purchased are paid up, the ...
Disability in which a wage earner is forever prevented from working because of injury or illness suffered. ...
Court that presides over estate distribution settlements, documentation of wills, and the appointment of legal guardians. ...
Special policy blank issued by an insured for individual shipments or other purposes under an open policy. The open policy allows an insured to buy protection for all marine business for an ...
Calculation of insurance premiums based on an age less than the current age of the insured. ...
Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance ...
Membership organization of individuals especially trained in the application of property and casualty insurance to personal and business situations. Membership is achieved by passing a ...
Have a question or comment?
We're here to help.