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Legal Terminologygarnishment A court-ordered process that takes property from a person to satisfy a debt. For example, a person who owes money to a creditor may have her wages garnished if she loses a lawsuit filed by the creditor. Up to 25% of a person's wages can be deducted. GATT See General Agreement on Tariffs and Trade. General Agreement on Tariffs and Trade (GATT) A comprehensive free-trade treaty signed in 1947 by 117 nations, including almost every developed country. The goal of GATT has been to promote global economic growth by encouraging and regulating world trade. Among other things, member countries are required to treat all other member countries equally in the application of import and export tariffs, offer basic copyright protection to authors from member countries, consult with each other about trade matters and attempt to resolve differences in a peaceful manner. GATT created an international regulatory body known as the World Trade Organization (WTO) to enforce compliance with the agreement. general damages See damages. general partner A person who joins with at least one other to own and operate a business for profit -- and who (unlike a corporation's owners), is personally liable for all the business's debts and obligations. A general partner's actions can legally bind the entire business. See also partnership, limited partnership. general power of attorney See power of attorney. generation-skipping transfer tax A federal tax imposed on money placed in a generation-skipping trust. Currently, there is a $1 million exemption to the GSTT; that is, each person may leave $1 million in a generation-skipping trust free of this tax. The GSST is imposed when the middle-generation beneficiaries die and the property is transferred to the third-generation beneficiaries. Every dollar over $1 million is subject to the highest existing estate tax rate--currently 55%--at the time the GSTT tax is applied. generation-skipping trust A trust designed to save on estate tax. The trust principal is preserved for the trust maker's grandchildren, with his or her children receiving only income from the trust. Because the children (the middle generation) never legally own the property, it isn't subject to estate tax at their death. See generation-skipping transfer tax. generic mark In trademark law, a word or symbol commonly used to describe an entire type of product or service rather than to distinguish one product or service from another. An example is raisin bran, used by several manufacturers of breakfast cereals to describe their products. Generic marks never receive protection because they don't serve the basic function of marks, which is to distinguish goods and services in the marketplace. genericide Loss of trademark protection that occurs when a specific brand name becomes identified with the entire type of product or service. For example, Xerox was in danger of losing the trademark on its name when to Xerox something was equivalent to copying it. gift taxes Federal taxes assessed on any gift, or combination of gifts, from one person to another that exceeds $12,000 in one year. Several kinds of gifts are exempt form this tax: gifts to tax-exempt charities, gifts to your spouse (limited to $120,000 annually if the recipient isn't a U.S. citizen) and gifts made for tuition or medical bills. In addition to the annual gift tax exclusion, there is a $1 million cumulative tax exemption for gifts. In other words, you can give away a total of $1 million during your lifetime -- over and above the gifts you give using the annual exclusion -- without paying gift taxes. golden rule argument During a jury trial, an attempt to persuade the jurors to put themselves in the place of the victim or the injured person and deliver the verdict that they would wish to receive if they were in that person's position. For example, if the plaintiff in a personal injury case has suffered severe scarring, the plaintiff's lawyer might ask the jury to come back with the verdict they themselves would want to receive had they been disfigured in such a manner. As a rule, judges frown upon this type of argument, because jurors are supposed to consider the facts of a case in an objective manner. goods & chattels See personal property. grace period A period of time during which you are not required to make payments on a debt. For example, most credit cards give you a grace period of 20-30 days before you have to pay interest on the amount of your purchases. Cash advances, however, usually have no grace period; interest begins to accumulate from the date of the withdrawal, even if you pay your bills on time. Also, some student loans give you a grace period after graduating or dropping out of school. During this time, you are not required to make payments on your loan. grand jury In criminal cases, a group that decides whether there is enough evidence to justify an indictment (formal charges) and a trial. A grand jury indictment is the first step, after arrest, in any formal prosecution of a felony. 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. guardian ad litem A person, not necessarily a lawyer, who is appointed by a court to represent and protect the interests of a child or an incapacitated adult during a lawsuit. For example, a guardian ad litem (GAL) may be appointed to represent the interests of a child whose parents are locked in a contentious battle for custody, or to protect a child's interests in a lawsuit where there are allegations of child abuse. The GAL may conduct interviews and investigations, make reports to the court and participate in court hearings or mediation sessions. Sometimes called court-appointed special advocates (CASAs). guardian of the estate Someone appointed by a court to care for the property of a minor child that is not supervised by an adult under some other legal method, such as a trust. A guardian of the estate may also be called a property guardian or financial guardian. See also guardian. guardianship A legal relationship created by a court between a guardian and his ward--either a minor child or an incapacitated adult. The guardian has a legal right and duty to care for the ward. This may involve making personal decisions on his or her behalf, managing property or both. Guardianships of incapacitated adults are more typically called conservatorships .
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