Settlor / Grantor
The person who creates and funds the trust.
Trustee
The person or institution that holds legal title and manages the trust under its terms.
Beneficiary
The person or entity who benefits from the trust.
Corpus / Principal
The property held in the trust.
Inter vivos trust
A trust created during the settlor's lifetime (a 'living trust').
Testamentary trust
A trust created by a will that takes effect at death.
Revocable
A trust the settlor can amend or revoke; assets remain in the settlor's estate.
Irrevocable
A trust that cannot be revoked; assets are generally removed from the settlor's estate.
Probate
The court process of administering a deceased person's estate.
Spendthrift clause
A provision barring a beneficiary's creditors from reaching trust assets before distribution.
Marital deduction
A deduction deferring estate tax on transfers to a surviving spouse.
QTIP
Qualified Terminable Interest Property — a trust qualifying for the marital deduction while controlling the remainder.
GST
Generation-Skipping Transfer tax — a tax on transfers skipping a generation, with an available exemption.
Crummey power
A beneficiary's right to withdraw gifted contributions for a short window, converting gifts to present interest for the annual exclusion.
Section 7520 rate
The IRS hurdle rate used to value retained interests in GRATs and QPRTs.
Rule against perpetuities
The common-law limit on how long a trust may last; abolished for some trusts in certain states.
Constructive trust
A court-imposed remedy to prevent unjust enrichment by a wrongdoer holding property.
Resulting trust
A trust implied by law returning property to the settlor when an express trust fails or leaves a surplus.
Unitrust
A trust paying a fixed percentage of annually revalued assets rather than a fixed dollar amount.
Funded trust
A trust whose assets have actually been retitled into the trust's name.