An interest-in-possession trust ensures that the income generated by the trust's assets goes to a specific beneficiary or beneficiaries for a fixed period or until the life tenants' death. Subsequently, the capital passes to the remainderman.
A life estate is an interest in property that lasts for the duration of a person's life, providing certain rights and responsibilities for the life tenant.
Settled property refers to property that is included in an interest-in-possession trust, where beneficiaries have the right to benefit from the property during their lifetime.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.