Glossary Archive

The Rule Against Accumulations is a legal principle that limits the duration for which income generated by a trust can be accumulated rather than distributed to beneficiaries. This rule aims to prevent the indefinite retention of trust income, ensuring that beneficiaries receive their rightful shares in a timely manner. In general, the Rule Against Accumulations...

The Rule Against Double Taxation is a legal principle that aims to prevent the same income or asset from being taxed multiple times by different jurisdictions or levels of government. It serves to ensure that individuals and businesses are not unfairly burdened by taxes on the same source of income. In the context of estate...

The Rule Against Perpetual Administration is a legal principle that seeks to limit the duration of the administration of a trust or estate to prevent indefinite control over property. The primary purpose of this rule is to ensure that assets are managed and distributed within a reasonable timeframe, thus avoiding situations where property may be...

The Rule Against Perpetuities is a legal principle that limits the duration of certain interests in property to prevent them from lasting indefinitely, thereby ensuring property remains marketable and freely transferrable. The rule states that no interest in property is valid unless it must vest, if at all, within a certain time frame—specifically, within 21...

The Rule of Convenience in Distribution is a legal principle used in estate planning and trust administration. It serves to simplify the management and distribution of assets within a trust or estate by allowing distributions to be made at a particular time that is convenient for the beneficiaries, rather than adhering strictly to the timing...

S Corporation An S Corporation is a special type of corporation that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity. This means that the income, deductions, and credits of the corporation pass directly to its shareholders, avoiding the double taxation commonly associated with traditional C Corporations. To qualify...

Sale Agreement Assignment Clause A Sale Agreement Assignment Clause is a provision within a sale agreement that outlines the rights and obligations of the parties involved regarding the assignment of the agreement to third parties. This clause specifies whether a party can transfer its rights and duties under the agreement to another individual or entity...

Sale Contract Contingency Clause A Sale Contract Contingency Clause is a provision included in a real estate purchase agreement that establishes specific conditions that must be met for the contract to be fully binding. This clause protects the interests of the buyer and, in some cases, the seller by allowing the transaction to proceed only...

Sale-Leaseback Transaction A sale-leaseback transaction is a financial arrangement in which one party sells an asset—typically real estate or equipment—to another party and simultaneously enters into a lease agreement to continue using that asset. This structure allows the original owner, now the seller-tenant, to free up capital that was tied up in the asset while...

Sales and Use Tax Compliance Agreement A Sales and Use Tax Compliance Agreement is a legal contract between a business and a tax authority that outlines the obligations and processes for ensuring compliance with applicable sales and use tax laws. These agreements are designed to clarify how businesses should handle tax collection, reporting, and remittance...