An estate in reversion is a type of estate left by the grantor for themselves, beginning after the termination of a specific estate granted by them. For example, a landlord has an estate in reversion that becomes theirs to possess when the lease expires.
A General Warranty Deed is a legal document used in the transfer of ownership of real property, where the grantor guarantees the grantee a clear title free from any claims or encumbrances, both during and before the grantor's ownership.
The grantee is the party to whom the title of real property is conveyed, effectively the buyer or recipient in a real estate transaction. This term is often used in legal documents such as deeds, contracts, and wills.
A grantor is an entity, often an individual or trustee, that transfers, or 'grants,' assets or rights to another party; in the context of investments and law.
A type of trust that has beneficiaries other than the grantor, but because of the retention of certain interests or certain powers over the trust, all income of the trust is taxed to the grantor.
Incident of ownership refers to an element of ownership or degree of control over property, which can impact the tax treatment of transferred property, especially in the context of estate taxes.
An Inter Vivos Trust, also known as a living trust, is a legal arrangement established during the lifetime of the grantor, typically for the benefit of another person, such as a child. This differs from a Testamentary Trust, which becomes effective upon the death of the trust creator.
A Quitclaim Deed is a legal instrument that conveys only the right, title, or interest that the grantor currently has in a property, without guaranteeing that the grantor actually has any specific title or interest in the property. The grantor, under a Quitclaim Deed, releases whatever interest they may have to the grantee.
A revocable trust is an estate planning tool that allows the grantor to alter or cancel the trust agreement during their lifetime, providing flexibility compared to an irrevocable trust.
A settlor is the person in a trust relationship who creates or intentionally causes the trust to come into existence. Other terms used to designate this person include donor, trustor, and grantor.
A type of property conveyance deed in which the grantor limits the title warranty given to the grantee to claims arising only by, from, through, or under the grantor, and does not cover defects arising before the grantor's ownership.
A testamentary trust is a legal entity created as a result of a will and generally takes effect upon the death of the grantor, in contrast to an inter vivos trust which is established during the grantor's lifetime.
A Totten Trust, also known as a payable-on-death (POD) account, is a type of trust where the assets are designated for a beneficiary, but the grantor retains control and the right to reclaim the assets. When the grantor dies, the assets pass to the beneficiary, but not until they have been included as part of the grantor's taxable estate.
An unrecorded deed is an instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of change in ownership. Recording a deed is essential to protect one’s interest in real estate.
A warranty deed is a legal document used in real estate transactions to convey property ownership with guarantees regarding the status of the title.
