GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Sprinkling Provision


Synonyms:dividing assets, divvying assets, spreading assets
Filed Under: estate-management, financial-banking, insurance
Tags: banking, insurance
 

Definition of sprinkling provision

sprinkling provision
1. A provision that allows the trustee of a life insurance policy to distribute the death benefit amongst beneficiates as the trustee sees fit. A sprinkling provision gives the trustee the discretion to allocate funds to beneficiaries who are in most need of the money.

Related Terms and Acronyms:

  • death benefit (DB)   A payment or series of payments made to the beneficiaries of a life insurance policy.
      ➥  An amount paid to a beneficiary in a life linsurance policy.
  • executor   The person who manages the estate of a deceased individual.
  • life insurance   An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
      ➥  CanEquity offers life insurance.
  • life insurance trust (LIT)   A legal entity that is made the beneficiary of a life insurance policy, often arranged to evade taxation.
  • power of attorney (PA, POA)   A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and cheques, for example.
  • probate sale   Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs.
  • trust   A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
  • trust company   A company that acts as a trustee (an entity that controls financial assets on the behalf of another).
  • trustee   A person who holds and manages assets for the benefit of beneficiaries.
  • will   A document that states what must be done with a person's estate after his or her death.

More Related Terms and Acronyms

Search the Glossary

Compare Mortgage Rates Here
Interested in viewing current mortgage rates? Compare rates from all the best lenders in Canada using our mortgage rate comparison chart and find the lowest one.
Mortgage Rate Comparison
 
Mortgage Rates
Unlike the banks, you don't ever have to haggle with us over our rates. We will show you our best rates, right from the start. No fuss, no muss. Why don't you check out our mortgage rates right now?
Mortgage Rates
 
Brand New Mortgage Calculator
Use our new mortgage calculator and strike a balance between maximizing your payment schedule and leaving yourself enough breathing room to live comfortably. By simply changing your mortgage amount, amortization period, interest rate, or payment frequency you can determine the best mortgage for your unique situation.
New Mortgage Calculator