What Is an Intentionally Defective Grantor Trust (IDGT)? An intentionally defective grantor (IDGT) trust is an estate-planning strategy used to freeze an individual’s assets for estate tax purposes but not for income tax purposes. The intentionally defective grantor trust is set up as a standard grantor trust, but with a […]
Legal Terms
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What Is a Unilateral Contract? A unilateral contract is a one-sided offer where the offer creates an obligation only if it is fulfilled by the performance of a specified act. The offeror commits to remit payment only following the occurrence of that certain act. In general, unilateral contracts are most […]
What Is a Contingent Beneficiary? What is a contingent beneficiary? It is the person next in line to receive a beneficiary-named account if the primary beneficiary is unable or unwilling. A contingent beneficiary is a secondary beneficiary who is essentially waiting in the wings, just in case. In other words, […]
What is a Certificate of Incumbency? A certificate of incumbency is an official corporate document that identifies the firm’s current directors, officers, and key executives. An incumbency certificate of incumbency is issued by a corporation or limited liability company. It includes the names of the firm’s current directors, executives, and, […]
What Is a Modified Gross Lease? A modified gross lease is a rental agreement where the landlord and tenant share the responsibility of paying a property’s operating expenses. In general, the tenant pays base rent but also bears a proportional amount of the property’s other expenditures. For example, property taxes, […]
What Is Subordinated Debt? Subordinated debt is an unsecured obligation that ranks lower in terms of claims on assets or profits than more senior loans or obligations. This type of debt is also known as a subordinated debenture. It is an unsecured loan or bond that ranks lower in terms of […]