Clifford trust
- noun
- Specialized
:
fideicomiso Clifford
- The family created a Clifford trust to reduce their overall tax burden.
Examples
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Before 1986, many wealthy individuals made use of a Clifford trust in estate planning.
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Changes in tax law have largely eliminated the benefits of setting up a Clifford trust.
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She established a Clifford trust to benefit her children.
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Many wealthy individuals set up Clifford trusts for tax benefits.
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Wealthy families often utilize a Clifford trust to minimize their tax liabilities over a long period.
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After consulting with a financial advisor, they decided to establish a Clifford trust to ensure more favorable tax treatment.
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Setting up a Clifford trust can be an effective strategy for transferring assets while reducing taxes for the beneficiaries.
Surface Forms
Morphology
Clifford + trust
Although the word 'trust' signals a legal arrangement, the addition of the proper name 'Clifford' makes this an eponymous, specialised legal term whose precise meaning (tax planning, income transfer, 10‑year rule) cannot be derived from the constituents. A B1 learner who knows the words would at best guess it is a type of trust but would not be able to infer the technical tax-related conditions, so domain knowledge is required.
Etymology
The Clifford trust is named after a person or court case called Clifford and describes a way to put income into a trust for someone who pays tax at a lower rate. People kept the income with that person for ten years or more to lower the original owner's tax, so the term means 'a trust set up to reduce tax by shifting income'.
