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Trusts & Estates Glossary: B
BACK-END REVERSION:
A contingent reversion in a Grantor Retained Income Trust which permits the grantor’s estate to recover the trust property if the grantor dies within a period commencing at some point after the start of the income term and ending when the income term ends.
BAILMENT:
The delivery of personal property by one person to another for some specific purpose, such as for use, repairs, or safekeeping, but without passing title to the property. The person delivering the property is known as the bailor; the person receiving it, the bailee.
BREACH OF TRUST:
Violation of a duty of a trustee to a beneficiary.
BUDGET:
(1) The statement of probable revenues and expenditures in conjunction with an operation involving receipts and expenses. (2) A statement of funds available and needed for the payment of claims, taxes, and cash bequests in an estate.
BUSINESS INSURANCE TRUST:
A trust of life insurance policy contracts created in connection with a business enterprise. The term is applied alike to a trust created for the liquidation of business interests and to one created for credit or other purposes for the benefit of the business enterprise.
BUSINESS TRUST:
(1) Massachusetts trust or common law trust—A form of business organization wherein the assets are conveyed or transferred to a board of trustees for management and operation for the benefit of the holders of transferable trust certificates representing shares which resemble closely the shares of stock in a corporation. (2) Voting trust—A form of business organization wherein the owners of a part or all of the stock of a company transfer their shares to trustees for the purpose of voting them. They receive in return transferable voting trust certificates which entitle them to any dividends on the stock.
BUY-SELL AGREEMENT:
An agreement wherein owners of a business arrange to transfer their respective ownership interests upon the death of one, or upon some other event, so as to provide continued control of the business or some other desired end.
BUY TICKET:
A form prepared in multiple copies, used by the investment department to instruct the order department to purchase a security.