Weatherby & Associates, PC

Defective trust
A trust that is taxed as a grantor trust, usually because of a power inserted specifically to achieve this result, as with some life insurance trusts.

Demand loan
A loan on which the lender can demend repayment at any time.

Depletion deduction
An income tax deduction for the annual dimunition of value in a natural resource (such as an oil and gas interest) caused by its exhaustion from productive use.

Direct skip gift
A gift to the donor's grandchild or other person assigned to a similar or more remote generation (see "Skip person"), upon whcih a generation-skipping transer tax may be imposed.

Durable Power of Attorney
A Power of Attorney that does not end on the disability of the principal. Authorized in every state but not in the District of Columbia.