A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
grandfather clause
A provision in a new law that limits its application to people who are new to the system; people already in the system are exempt from the new regulation. For example, when Washington, D.C. raised its drinking age from 18 to 21, people between those ages, who could drink under the old law, were allowed to retain the right to legally consume alcohol under a grandfather clause.
grant deed
A deed containing an implied promise that the person transfering the property actually owns the title and that it is not encumbered in any way, except as described in the deed. This is the most commonly used type of deed. Compare quitclaim deed.
grantor
Someone who creates a trust. Also called a trustor or settlor.
grantor retained income trust
Irrevocable trusts designed to save on estate tax. There are several kinds; with all of them, you keep income from trust property, or use of that property, for a period of years. When the trust ends, the property goes to the final beneficiaries you've named. These trusts are for people who have enough wealth to feel comfortable giving away a substantial hunk of property. They come in three flavors: Grantor-Retained Annuity Trusts (GRATs), Grantor-Retained Unitrusts (GRUTs) and Grantor-Retained Income Trusts (GRITs).
gravamen
The essential element of a lawsuit. For example, the gravamen of a lawsuit involving a car accident might be the careless driving of the defendant.
green card
The well-known term for an Alien Registration Receipt Card. This plastic photo identification card is given to individuals who are legal permanent residents of the United States. It serves as a U.S. entry document in place of a visa, enabling permanent residents to return to the United States after temporary absences. The key characteristic of a green card is that it allows the holder to live permanently in the United States. Unless you abandon your residence or violate certain criminal or immigration laws, your green card can never be taken away. Possession of a green card also allows you to work in the United States legally. Those who hold green cards for a certain length of time may eventually apply for U.S. citizenship. Green cards have an expiration date of ten years from issuance. This does not mean that your permanent resident status expires. You must simply apply for a new card.
greenmail
A situation in which a person or entity buys enough stock in a company to threaten a hostile takeover. The person or entity can greenmail the victim company into buying back its stock at a higher price in order to avoid the takeover.
gross estate
For federal estate tax filing purposes, the total of all property owned at death, without regard to any debts or liens against the property or the costs of probate. Taxes are due only on the value of the property the person actually owned (the net estate) plus the amount of any taxable gifts made during life. In a few states, the gross estate is used when computing attorney fees for probating estates; the lawyer gets a percentage of the gross estate.
gross lease
A commercial real estate lease in which the tenant pays a fixed amount of rent per month or year, regardless of the landlord's operating costs, such as maintenance, taxes and insurance. A gross lease closely resembles the typical residential lease. The tenant may agree to a "gross lease with stops," meaning that the tenant will pitch in if the landlord's operating costs rise above a certain level. In real estate lingo, the point when the tenant starts to contribute is called the "stop level," because that’s where the landlord’s share of the costs stops.
grounds for divorce
Legal reasons for requesting a divorce. All states require a spouse who files for divorce to state the grounds, court and whether requesting a fault divorce or a no-fault divorce.
group life or group health insurance
A single policy under which individuals in a group--for example, employees--and their dependents are covered.
guaranteed reservation
A hotel or rental car reservation secured by a credit card number. In exchange for your card number, the hotel or rental agency promises to have a room or vehicle for you no matter when you show up. If you have a guaranteed reservation with a hotel, it must provide you with a room, either at that hotel or at another comparable establishment. If you have a guaranteed reservation with a car agency, it must provide you with a vehicle. The downside of a guaranteed reservation is that if you don't show up and haven't cancelled your reservation, you will be billed for one night in the room or one day's use of the vehicle.
guarantor
A person who makes a legally binding promise to either pay another person's debt or perform another person's duty if that person defaults or fails to perform. The guarantor gives a "guaranty," which is an assurance that the debt or other obligation will be fulfilled.
guaranty
When used as a verb, to agree to pay another person's debt or perform another person's duty, if that person fails to come through. As a noun, the written document in which this assurance is made. For example, if you cosign a loan, you have made a guaranty and will be legally responsible for the debt if the borrower fails to repay the money as promised. The person who makes a guaranty is called the guarantor. Also known as a guarantee or warranty.
guardian
An adult who has been given the legal right by a court to control and care for a minor or her property. Someone who looks after a child's property is called a "guardian of the estate." An adult who has legal authority to make personal decisions for the child, including responsibility for his physical, medical and educational needs, is called a "guardian of the person." Sometimes just one person will be named to take care of all these tasks. An individual appointed by a court to look after an incapacitated adult may also be known as a guardian, but is more frequently called a conservator.