What is abeyance? Abeyance is an adjective that means “not held in common.” A deed or trust cannot be considered aberrant unless it specifically provides for the holding of a deed by a specified individual. A deed of trust does not hold any individual in common with whom it has been created. If a grantor, divisor, etc., has created a trust estate, then that individual cannot abey the trust and hold it against the grantee, etc., unless the trust is specifically provided for that purpose.
What is abeyance in deed? When there is no holding in common of the trust estate, that is called abeyance. When there is some specific holding in common of a trust estate, that is called abeyance. When there is no specific holding in common of the trust estate, then the estate is said to be simply held. There are two qualifications for abeyance. One is when there is no right of redemption; and two is if the grantor is under a power of attorney.
Why would I say that abeyancy occurs when there is no redemption? If there is no redemption, you cannot be a trust property. If there is no right of redemption, the property cannot be transferred. If there is a power of attorney, then the person holding the property can be a trust. But, if the person doesn’t have a power of attorney and can’t do that, then he or she may be able to transfer the property without abeying.
Why should I call a property held in abeyance, instead of saying that it is trust? It is because of one factor. In some states abeyances are easier to prove than trusts. So, if your state requires that you show that the property is indeed held in abeyance, then the process will be a lot simpler for you.
What is abeyancy also used for? There are many different uses of abeyance, but the most common use is in Limitedpurpose Trusts and revocable living trusts. A Limited Purpose Trust is a type of trust estate that has some specific purposes, which are to avoid probate, to protect inheritance, and to create additional rights.
A revocable living trust is one that will grant its owner a “right to redeem”. The trustee will hold the property for the benefit of the people named in the trust. It will revolve during the lifetime of the owner, and then become part of the estate of the deceased.
What is abeyance in Limitedpurpose Trusts? In Limitedpurpose Trusts, it means that the property can be held by the trustee or grantor for certain purposes. These purposes can include revocable trusts, for investments, and for gift giving. So, when we refer to what is abeyance in Limited Purpose Trusts, it simply refers to the holding of property in the form of a trust.
What is abeyance in probate? In probate, it simply refers to the holding of property after a person dies. Probate usually involves selling of property at a trustee sale.
What is abeyance in corporations? In corporations, the word is used to refer to the holding of stock. Stocks are shares of stock that are owned by the corporation. So, when you talk about abeyance in corporations, it is simply referring to the holding of stock within the company. However, the corporation itself will never be bankrupt.
What is abeyance in trusts? When talking about what is abeyance in trusts, it simply refers to a trustee holding the property for a specific purpose. For example, there are life insurance policies. The beneficiaries of the policy will receive an amount of money upon the death of the insured. This money is paid directly to the beneficiaries.
What is abeyance in limited purpose trusts? Similar to what is abeyance in corporations, there are several ways to define the general terms. For instance, in limited purpose trusts, the beneficiaries of the trust will receive an asset upon death of the owner. This could be a house or other valuable property. However, the purpose of this is to create a pass-through entity where the assets go directly to the beneficiaries after the death of the primary owner.
What is abeyance in general? The process of wills can be confusing. If you need more information, do not hesitate to contact an estate planning attorney who can help you understand the terminology. There are many more uses of the term than these two examples.