A trust that allows couples to reduce or avoid estate taxes. Each spouse puts his or her property in an AB trust. When the first spouse dies, his or her half of the property goes to the beneficiaries named in the trust -- commonly, the grown children of the couple -- with the crucial condition that the surviving spouse has the right to use the property for life and is entitled to any income it generates. The surviving spouse may even be allowed to spend principal in certain circumstances. When the surviving spouse dies, the property passes to the trust beneficiaries. It is not considered part of the second spouse's estate for estate tax purposes. Using this kind of trust keeps the second spouse's taxable estate half the size it would be if the property were left directly to the spouse. This type of trust is also known as a bypass or credit shelter trust.
ADA
See Americans With Disabilities Act.
ADEA
See Age Discrimination in Employment Act.
ADR
See alternative dispute resolution.
ARM
See adjustable rate mortgage.
Age Discrimination in Employment Act (ADEA)
A federal law that prohibits arbitrary discrimination against workers over the age of 40 in any employment decision, especially firing. The ADEA also provides that no worker can be forced to retire.
Allen charge
See dynamite charge.
Americans With Disabilities Act (ADA)
A federal law that prohibits discrimination against people with physical or mental disabilities in employment, public services and places of public accommodation, such as restaurants, hotels and theaters.
Attorney General
Head of the United States Department of Justice and chief law officer of the Federal government. The Attorney General represents the United States in legal matters, oversees federal prosecutors, and provides legal advice to the President and to heads of executive governmental departments. Each state also has an attorney general, responsible for advising the governor and state agencies and departments about legal issues, and overseeing state prosecuting attorneys.
ab initio
Latin for "from the beginning." This term is used by lawyers intent upon getting their money's worth from a liberal arts education by uttering such statements as "The judge was against me ab initio."
abandonment (of a child)
A parent's failure to provide any financial assistance to or communicate with his or her child over a period of time. When this happens, a court may deem the child abandoned by that parent and order that person's parental rights terminated. Abandonment also describes situations in which a child is physically abandoned -- for example, left on a doorstep, delivered to a hospital or put in a trash can. Physically abandoned children are usually placed in orphanages and made available for adoption.
abandonment (of a spouse)
See desertion.
abandonment (of trademark)
A situation in which the owner of a trademark or service mark does not use the mark for an extended period of time, fails to protest the unauthorized use of the mark by others or lets others use the mark without adequate supervision. If a trademark is abandoned, the owner loses her exclusive rights to the mark.
abatement
A reduction. After a death, abatement occurs if the deceased person didn't leave enough property to fulfill all the bequests made in the will and meet other expenses. Gifts left in the will are cut back in order to pay taxes, satisfy debts or take care of other gifts that are given priority under law or by the will itself.
abstract of title
A short history of a piece of land that lists any transfers in ownership, as well as any liabilities attached to it, such as mortgages.
