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Simple English definitions for legal terms
GRUT
Read a random definition: querela coram rege a concilio discutienda et terminanda
A quick definition of GRUT:
A guarantee is a promise that something will be done or provided. It can also be something given as security to make sure that a promise is kept. For example, if you buy a toy and it breaks, the store might guarantee to fix it or give you a new one. When someone guarantees something, they are making a commitment to make sure it happens.
A more thorough explanation:
Definition: GRUT stands for Grantor-Retained Unitrust. It is a type of trust where the grantor (the person who creates the trust) retains the right to receive income from the trust for a certain period of time. After that time, the remaining assets in the trust are distributed to the beneficiaries.
Definition: GSA stands for General Services Administration. It is a government agency responsible for managing and supporting the basic functioning of federal agencies, including managing federal buildings and supplies.
Definition: GST Supertrust is a type of trust that is designed to last for multiple generations. It is also known as a dynasty trust. The assets in the trust are not subject to estate taxes when they are passed down to future generations.
Example: John creates a GRUT and retains the right to receive income from the trust for 10 years. After 10 years, the remaining assets in the trust are distributed to his children. This allows John to receive income from the trust during his lifetime while also ensuring that his children will receive the remaining assets.
Example: The GSA is responsible for managing federal buildings and supplies, such as office furniture and vehicles. This helps ensure that federal agencies have the resources they need to carry out their work.
Example: Sarah creates a GST Supertrust and funds it with $10 million. The trust is designed to last for multiple generations, and the assets in the trust are not subject to estate taxes when they are passed down to future generations. This allows Sarah's family to benefit from the trust for many years to come.
These examples illustrate the definitions by showing how each term is used in a specific context. The examples help to clarify the meaning of each term and make it easier to understand.