Trust Acronyms Used in Business

Think of any profession and you'll find that each line of work has its own unique language. The medical and legal service areas certainly have distinctive words for communicating and there are many occasions when we "civilians" have a hard time keeping pace and comprehending exactly what's being expressed. The area of trusts as utilized by the legal and financial profession is no exception.

There are many acronyms used in trust documents that may have a more common meaning elsewhere but have a specific meaning as part of a legal trust document. For example, the acronym UDT commonly refers to an Underwater Demolition Team in navy parlance but is also used as jargon for referring to a Urine Drug Test. If you see this acronym used in a trust document it has nothing to do with explosives or drugs but is short for Under Declaration of Trust. Here is a listing of acronyms and abbreviations commonly used with trusts along with what they stand for:

APT - Asset Protection Trust

BDIT - Beneficiary Defective Inheritor's Trust

CLAT - Charitable Lead Annuity Trust

CLT - Charitable Lead Trust

CLUT - Charitable Lead Unitrust

CRT - Charitable Remainder Trust

CRAT - Charitable Remainder Annuity Trust

CRUT - Charitable Remainder Unitrust

CST - Credit Shelter Trust

DAPT - Domestic Action Protection Trust

DFI - Department of Financial Institutions

DTD - Dated

ESBT - Electing Small Business Trust

ETF - Education Trust Fund

ETIP - Estate Tax Exclusion Period

FBO - For Benefit Of

GRAT - Grantor Retained Annuity Trust

GRIT - Grantor Retained Income Trust

GST - Generation Skipping Trust

ILIT - Irrevocable Life Insurance Trust

NIMCRUT - Charitable Remainder Unitrust with Net Income make-up Provision

QDOT - Qualified Domestic Trust

QFT - Qualified Funeral Trust

QPRT - Qualified Personal Residence Trust

QTIP - Qualified Terminable Interest Property Trust

RLT - Revocable Living Trust

SNT - Special Needs Trust

TD - Temporary Document

TTEE - Trustee

TUA - Trust Under Agreement

TUW - Trust Under Will

U/A - Under Agreement

UDT - Under Declaration of Trust

Trusts are relatively easy to define but there are many variations. A trust can be defined as a legal arrangement where an individual gives fiduciary control over property to another for the benefit of the trust beneficiaries. The grantor of the trust, also sometimes referred to as the trustor, is the one that transfers assets into the trust. The trustee is the holder of the property that is being maintained or managed for the benefit of the beneficiary. The beneficiary is the ultimate recipient of the property.

References: www.bankrate.com