Glossary – S

glossary

 

 

 

S Corporation

An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any federal income taxes. Instead, the corporation’s income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.

S-I-C-R

Skilled nursing facility – Intermediate nursing care – Custodial care – Residential care.

Types of long term care benefits.

Safe Harbor

A provision of a statute or a regulation that reduces or eliminates a party’s liability under the law, on the condition that the party performed its actions in good faith or in compliance with defined standards.

SAI

Separate Account equity Index.

Satisfaction

See Ademption By Satisfaction.

Savings Clause

A provision, such as under the Rule Against Perpetuities, that attempts to make a disposition valid to the fullest extent possible or avoid invalidity to the fullest extent possible simply by stating the intent and calling for interpretation or application in a manner consistent with that intent.

SC

Subchapter S Corporation.

SCAN

Stop Child Abuse Now.

Schedule of Initial Trust

A schedule listing property to be included in a newly formed trust. It should be included in the trust document to help establish intent to create a trust, which is an element required to create a trust.

SCHIP

State Children’s Health Insurance Program.

SCI

Southern California Institute.

SCIF

State Compensation Insurance Fund (California).

SCIN

Self-Canceling Installment Notes.

SDCL

South Dakota Codified Laws; San Diego County Library.

SDI

State Disability Insurance.

SDING

South Dakota INcomplete Gift non-grantor trust.

SDLIA

Split-Dollar Life Insurance Agreement.

SDLT

Split-Dollar Legacy Trust.

SDPC

South Dakota Planning Company.

SDSC

San Diego Superior Court.

Some of their forms include:

SDSC ADM-11: To request case file papers.

SDSC FCS-039: Guardianship Questionnaire for waiver request (estate).

SDSC FCS-045: Guardianship Questionnaire for waiver request (person).

SDSC PR-020: Referral Information and List of Relatives form used in conservatorships.

SDSC PR-063: Order Directing or Waiving Investigation.

SDSC PR-065: Increased Bid in Open Court re sale of real property.

SDSC PR-114: Form to request notes be mailed due to a lack of access to the internet by persons.

SDSC PR-136: Probate Ex Parte Coversheet & Instructions (green paper).

SDSC PR-162: Submitted Order Coversheet (blue paper)

SDSC PR-163: printed (pink paper); used with notice of lodgment.

SDT

Subpoena Duces Tecum.

SDTC

South Dakota Trust Company.

Second Look Doctrine

Under the Rule Against Perpetuities tests the validity of a power of appointment or its exercise at the time the power is exercised or lapses.

Second to Die Life Insurance

A life insurance policy covering two lives and paying off only after the death of the second insured to do so.

Secret Trust

Involves a transfer that on its face appears to be outright but extrinsic evidence purports to show was meant to be restricted with fiduciary duties.

Secured-Perimeter Residential Care Facility

A specialized kind of care facility designed for the treatment of persons with dementia, featuring secure outer fencing or locked exit doors. To place a conservatee in this kind of facility, the conservator must first establish and the court must find that the conservatee suffers from dementia, lacks capacity to consent to placement, and needs or would benefit from placement in this type of facility, and that this type of facility is the least restrictive placement appropriate for the conservatee’s care.

Self Proving Affidavit

Is essentially a form of deposition, executed to avoid having to produce witnesses to affirm what they saw in a will execution.

Self Proving Will

A will executed in a way that allows the probate court to accept it as the true will without additional proof. In California, a will is a self proving will when two witnesses to the will sign under penalty of perjury that they observed the testator sign the will and that the testator told them it was his/her will.

Self-Settled Domestic Assets Protection Trust

A self-settled DAPT. They are legally recognized in 15 states (as of 2014), including: Alaska, Delaware, Hawaii, Mississippi, Missouri, Nevada, New Hampshire, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Virginia, and Wyoming.

Self-Settled Trust

A trust where the person creating the trust (the settlor) is also the beneficiary or one of the beneficiaries of the trust.

Self Trusteed Declaration Of Trust

See Declaration Of Trust.

Self Trusted Trust

Trust in which Trustor is also trustee.

SEP

Simplified Employee Pensions. Special Enrollment Period.

SEP IRA

Simplified Employee Pension IRA. Ideal for small business employers.

SEPS

Special Medicare Part D Enrollment Periods.

Times when you can change Part D enrollment other than during open enrollment which is each year from November 15th to December 31.

Separate Property

All property owned by a California decedent that is not considered community or quasi-community property.

Service Organization

An organization providing services to “user entities”, for which these services are likely to be relevant to these user entities’ internal control for financial reporting.

Service Provider

An organization that provides health coverage by contracting with providers to provide medical services to subscribers who pay in advance through premiums. This type of organization pays directly to the provider of the service. The most common service provider organizations are: Blue Cross, Blue Shield, and HMOs.

Settlor

One who creates a trust. Also known as Trustor or Grantor.

SEUA

SouthEastern Underwriters Association.

Sever (or Severance)

The term for turning a joint tenancy into a tenancy in common.

SFC

Senate Finance Committee.

SFO

Single-Family Office. A company that manages investments and trusts for a single family.

SGA

Substantial Gainful Activity.

SGLI

Serviceman’s Group Life Insurance.

Shark-Fin CLAT

. . .

Shelter Trust

See Bypass Trust.

Sickness

An illness that first manifests itself while the policy is in force.

SIG

Special Interest Group.

SIMPLE

Savings Incentive Match Plan for Employees.

Simultaneous Death Act

See Uniform Simultaneous Death Act.

SIS

Social Insurance Supplement rider.

Pays benefits that would be paid by social security until insured qualifies for social security.

Situs

Location of property.

SLAPP

Strategic Litigation Against Protesting People. Strategic Lawsuit(s) Against Public Participation (Partnerships).

SLAT

Spousal Lifetime Access Trust.

SLM

Specified Low-Income Medicare Beneficiary Program.

Small Trust Termination

Provisions permit a trustee to determine that continued administration of the trust will be uneconomic or counterproductive and collapse the trust with an outright distribution.

SMI

Supplementary Medical Insurance; aka Medicare Part B; Sudden Money Institute.

SMLLC

Single Member Limited Liability Company.

SNET

Solicitation-Negotiation-Execution-Transaction

Acts involving insurance which require a license from the state.

SNF

Skilled Nursing Facility.

SNT

Special Needs Trust. Supplemental Needs Trust.

SNTF

Special Needs Trust Foundation; P.O. Box 1890; Lakeside, CA 92040; (619) 201-2672.

Social Security Disability

The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. While these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.

Social Security Disability Insurance pays benefits to you and certain members of your family if you are “insured,” meaning that you worked long enough and paid Social Security taxes.

SOGRAT

Stock Option GRAT.

Special Power Of Appointment

Old term to describe a non-general power.

Specific Bequest

One of a particular asset or source of funds, such as “my watch” or “the balanceof my account at the XYZ bank.” See General, Demonstrative, and Residuary Bequests.

Solicitor, Insurance

One appointed by an insurance broker, or an insurance agent, who employs them. Solicitors may not be employed by more than one broker or agent at a time.

SP

Separate Property. Sole Proprietorship.

Special Needs Trust

A Special Needs Trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held for their benefit. In addition to personal planning reasons for such a trust (the person may lack the mental capacity to handle their financial affairs) there may be fiscal advantages to the use of a trust. Such trusts may also avoid beneficiaries losing access to essential government benefits.

Specific Bequest

A specific item of an estate designated in the will as going to a specific beneficiary.

Specific Devise

A devise of specific property as opposed to general or residuary devise.

SPEE

Society of Petroleum Evaluation Engineers.

Spendthrift Clause/Provision

Clause implementing a spendthrift trust. See Asset Protection Trust.

Spendthrift Trust

A trust which restricts a beneficiary from alienating the beneficiary’s interest and prevents creditors of the beneficiary from reaching the interest.

SPDA

Single Premium Deferred Annuity.

SPIA

Single Premium Immediate Annuity.

SPIN

SPeculator-INitiated life insurance.

SPOA

Special Power Of Attorney.

Spousal Annuity

Same as the survivor annuity under ERISA.

Spousal Election

Same as the elective share.

SPP

Spousal Property Petition.

SPQ

Seller’s Property Questionnaire, a form used by CAR (California Association of Realtors).

Spray Provision

A provision in a trust giving the trustee the discretion to make unequal distributions among the beneficiaries. Also known as “sprinkle provisions.”

Springing Power

A durable power of attorney that by its terms does not become effective until a defined event, such as determination of the principal’s incapacity.

Sprinkle Provisions

See Spray Provision.

SRS

Social and Rehabilitation Service.

SRT

._.

SS

Surviving Spouse.

SSA

Social Security Act; Social Security Administration.

SSDI

Social Security Disability Income.

SSI

Social Security Income. Supplemental Security Income.

SSP

Statutory Sick Pay.

SSRN

Social Science Research Network.

ST

Successor Trustee.

STAMP

Securities Transfer Agents Medallion Program.

Standing

In a will contest context is the authority to prosecute the case because the contestant will be adversely affected by admission of the will to probate.

STARR

Acronym for remembering the means of dealing with risk. Sharing, Transferring, Avoidance, Reduction, and Retention.

Statute of Frauds

Law prescribing formal requirements for wills. The English law enacted in 1676 and later superseded by the Wills Act of 1837.

Statutes of Descent and Distribution

The intestate laws of a state.

Statutory Rule Against Perpetuities

The common law rule against perpetuities forbids some future interests (traditionally contingent remainders and executory interests) that may not vest within the time permitted; the rule “limit[s] the testator’s power to earmark gifts for remote descendants”.[1] In essence, the rule prevents a person from putting qualifications and criteria in his will that will continue to control or affect the distribution of assets long after he or she has died, a concept often referred to as control by the “dead hand” or “mortmain”.

STB

Surface Transportation Board.

STCG

Short-Term Capital Gain.

STEP

Society of Trusts and Estates Practitioners; Society of Trusts and Estate Professionals.

Step-up Basis

The readjustment of the value of an appreciated asset for tax purposes upon inheritance. With a step-up in basis, the value of the asset is determined to be the higher market value of the asset at the time of inheritance, not the value at which the original party purchased the asset.

STOLI

STranger Originated Life Insurance.

Stop Loss

A self-insured group qualifies for stop-loss coverage after the claims exceed a specific limit for a set period of time. It can be set up as an aggregate limit for all claims or a maximum paid on one claim.

Stop Loss Plan

See Minimum Premium Plan.

Stop Loss Provision

A maximum dollar amount that must be shared on a coinsurance basis to limit insured’s out of pocket expense. Once the stop loss has been met the insurer pays 100% of the covered expenses for the remainder of the year. It may or may not include the deductible.

STR

Suspicious Transaction Reporting.

Stranger To The Adoption Rule

Treated adopted children as natural born only vis-à-vis the adopting parent and not anyone – the stranger to the adoption – who was not a party to the adoption.

Street-Name Securities

Stocks or bonds of a customer that are held in the name of the brokerage house for ease of transfer.

Stretch Out

Procedure or process used to extend (stretch-out) the time during which mandatory distributions are made from a retirement account.

Strict Settlement

A settlement whereby land was limited to a parent for life, and after his death to his first and other sons or children in tail, with trustees interposed to preserve contingent remainders.

Structured Settlement Trust

A trust that is funded with payments to be received over a period of time as the result of a settlement in a personal-injury lawsuit.

Substantial Compliance

In will execution is modern horseshoes: close is good enough.

Substituted Judgment

Standard used by courts in authorizing conservators to make gifts of the conservatee’s property.

Substituted Judgment Petition

A petition in a conservatorship proceeding in which the conservator or another person interested in the conservatorship requests the court to authorize or require the conservator to take certain kinds of proposed actions for the benefit of the conservatee, the estate, or those persons or organizations the conservatee would be likely to provide for or make gifts to. This kind of petition is used in a wide variety of situations. For example, a conservator may be authorized to sign a will or an amendment to a will for the conservatee, to revoke or amend a trust the conservatee had the authority to revoke or amend, or to make a gift from the conservatee’s estate.

Succession

The act of acquiring title to property that was not disposed of by will.

Successor Executor

A person named in a will to replace the first-named executor if for any reason he is not able to serve.

Successor Trustee

Trustee who takes over when an earlier trustee is no longer serving as trustee.

Summary Administration

a short-form proceeding in lieu of probate.

Superwill

See Blockbuster Will.

Supplemental Accident

Supplement your health and disability income policies. These rare helpful because medical plans don’t cover all expenses and disability income polices have an elimination period which must be met before benefits are paid.

Supplemental Major Medical

Picks up where Basic policies leave off. Once benefits of the basic plans is exhausted, the insured pays a “corridor deductible” before the major medical supplement kicks in.

Supplemental Needs Trust

A special trust establish for a person who is receiving or who may be receiving benefits under a welfare benefit program where the trust provides benefits that are over and above (supplemental to) the person’s basic needs for food, clothing, and shelter. The assets in a properly drafted supplemental needs trust will not affect the person’s eligibility for government benefits. This type of trust may or may not be the same as a special needs trust, depending on the respective terms.

Supplemental Security Income pays benefits based on financial need.

Support Trust

A trust providing for the beneficiary’s support or maintenance.

Surcharge

One of several remedies to redress a fiduciary breach by holding the fiduciary personally accountable for any loss incurred.

Surviving Domestic Partner

The surviving member of a domestic partnership when one of them dies. See California Probate Code Section 37.

Survivor Annuity

Is the ERISA-mandated entitlement of a participant’s surviving spouse, also known as the spousal annuity.

Survivor Trust

Trust A” or the “Survivor’s Trust” remains revocable and contains the survivor’s property interests, and the surviving settlor has total control. If the survivor is the deceased settlor’s spouse, this trust usually receives all assets that exceed the applicable exclusion, and this qualifies for the marital deduction, thus deferring any estate tax until the surviving settlor’s death. If the survivor and the deceased settlor are not married, the deceased settlor’s assets are usually not added to the survivor’s trust since there is no way the transfer can qualify for the marital deduction.

Survivorship

Is the requirement that a named beneficiary must be alive at a certain time to take.

SWOT

Strengths, Weaknesses, Opportunities, and Threats.