Decedent

  

The term bankers and lawyers use for your dead Aunt Rita. (May she rest in peace.)

She had wishes (as stated in her will, and hopefully her trust) and obligations (like taxes). In all those official meetings you’ve attended, she’s been referred to as “the decedent.” It's what we call a deceased person in the legal sense.

Related or Semi-related Video

Finance: What is a trust deed?3 Views

00:00

Finance allah shmoop What is a trust deed here This

00:07

is okay So that's more of a trust fall A

00:10

trust deed is a kind of how to build it

00:14

kitt which instead of describing the construction of ah balsa

00:17

wood airplane describes how assets should be owned cared for

00:22

managed and eventually disposed of two the beneficiary or whoever

00:27

bought him in the first place or who were involved

00:29

in the model airplane build from the beginning What does

00:32

that mean Well a trustee lays out the rights and

00:35

obligations of the bank underwriting the purchase of whatever inventory

00:39

is involved here In this trust deed it lays out

00:43

the rights of the people transacting and it spells out

00:45

who gets called defend or when there is a conflict

00:48

And this is particularly useful in a world where there

00:51

is indeed not a lot of trust Essentially a business

00:54

owner is just holding merchandise that was bought by the

00:58

bank like eighteen miles of denim fabric with intentional rips

01:03

and tears in it You know those things as the

01:05

business owner stitches together hundreds than thousands of sets of

01:08

genes which they then sell into the fashion market places

01:13

In new york and milan the bank via their trust

01:17

deed owns that merchandise until the business owner essentially buys

01:21

them out of it or pays back the loan amount

01:24

committed when the merge was initially bought The trusty it'sjust

01:28

the legal documentation that outlines the various obligations of both

01:32

parties i'ii think of it as a contract light Why

01:35

would you want one of these arrangements If you're a

01:37

business owner Like why bother with all this trust deed

01:40

stuff and inventory and banks Well if you didn't have

01:43

tohave one well you wouldn't But if you're a fledgling

01:46

company hoping to make it big in the big city

01:49

and you need lots of inventory to make lots of

01:51

genes or nobody takes you seriously well then you do

01:54

what you have to dio and you can imagine that

01:56

banks charge very high interest for setting up the's trust

02:00

deeds because the credit risk they take here is usually

02:03

reasonably very high like the levi stitching company just vanishes

02:08

one night or was in fact a meth lab using

02:10

the denim as a mano a filtration process and the

02:14

mexican mafia comes in one night ending and this little

02:17

companies Entrepreneurial activities Well another reason banks charge high interest

02:20

is because the last thing they want tohave to dio

02:23

is repossess eighteen miles of denim and then try to

02:26

get their money back by selling that eighteen miles of

02:29

denim on ebay So as a result not only do

02:32

trusted borrowers pay high interest but they also have to

02:35

carry relatively expensive insurance on that inventory So that at

02:40

the end of the day the on the bank isn't

02:42

left high and dry Or at least you know just 00:02:44.81 --> [endTime] dry

Up Next

Finance: What is a Living Trust?
35 Views

A regular trust is a legal vehicle into which assets are placed so that it is legally clear who is to receive what. A living trust is a established...

Find other enlightening terms in Shmoop Finance Genius Bar(f)