| Separate Property |
Generally, all assets you acquire prior to marriage and assets acquired by gift or inheritance during marriage. |
| Separate Trust |
A trust established by one person. A married couple has separate trusts if each spouse has his/her own trust with its own assets. In contrast, see “Common Trust.” |
| Settle an Estate |
The process of handling the final affairs (valuation of assets, payment of debts and taxes, distribution of assets to Beneficiaries) after someone dies. |
| Settlor | See “Grantor.” |
| Special Gifts |
A separate listing of special assets that will go to specific individuals or organizations after your incapacity or death. Also called special bequests. |
| Special Needs Trust |
Allows you to provide for a disabled loved one without interfering with government benefits. |
| Spendthrift Clause |
Protects assets in a trust from a beneficiary’s creditors. |
| Spouse | Husband or wife, or married same-sex couples. |
| Stepped-up Basis |
Assets are given a new basis when transferred by inheritance (through a will or trust) and are re-valued as of the date of the owner’s death. If an asset has appreciated above its basis (what the owner paid for it), the new basis is called a stepped-up basis. A stepped-up basis can save a considerable amount in capital gains tax when an asset is later sold by the new owner. Also see “Basis.” |
| Subchapter S Corporation Stock |
Stock in a corporation which has chosen to be subject to the rules of subchapter S of the Internal Revenue Code. |
| Surviving Spouse |
The spouse who is living after one spouse has died. |
| Survivor’s Trust |
See “A Trust.” |
| Successor Trustee |
Person or institution named in the trust document who will take over should the first trustee die, resign, or otherwise become unable to act. |
