GLOSSARY OF TERMS
A person appointed by the court to manage one's estate when he or she dies without leaving a will. See also "Executor."
A sum of money payable at a regular interval, usually yearly.
Property that has increased in value. Examples of appreciated property may be real estate or stock.
An individual designated to receive benefits under a contract, such as a will, insurance policy, or
A gift of personal property left through a will.
Capital Gains Tax
Tax levied on the profits an investor realizes when he or she sells a capital asset at a price higher than the purchase price.
Charitable Gift Annuity
An agreement in which a donor transfers assets to a charitable organization in exchange for its promise to pay the donor an annuity for life. When the donor dies, the organization retains the remaining funds.
A trust whose beneficiary is a charitable organization.
Charitable Remainder Trust
A trust that will provide income to the non-charitable beneficiaries of the trust for a specified amount of time. After such time passes, the charitable organization will receive the remainder of the trust.
Closely Held Stock
Stock in a company where common shares are owned by one individual or by a small group of contrasting stockholders.
A legal instrument used to explain, modify, or revoke a will or part of one.
A beneficiary who receives the benefit if the primary beneficiary dies or is otherwise unable to receive the benefit.
The original cost or value of an asset before its appreciation or depreciation.
Durable Power of Attorney
A document whereby one individual designates another to act on his or her behalf should the first individual become incapacitated in some way.
A gift where the donor's contribution is invested with and becomes a part of the U.S. Figure Skating endowment. Annual distributions will be made from the earnings, rather than the principal and the fund will generate support in perpetuity.
A tax assessed on a property's market value payable after the owner's death. The maximum estate
tax rate is 35%.
A person appointed by the court to manage one's estate when he or she dies without leaving a will. See also "Administrator."
A person or entity that is legally responsible for the management of assets or information.
A tax assessed on property that is transferred as a gift. Usually levied on the person making the gift rather than the recipient.
Gift-Tax Annual Exclusion
The provision in tax law that exempts the first $13,000 in present-interest gifts (for 2012) given by
a person to each recipient from federal gift taxes.
The person who makes a grant or transfer of assets.
The total valuation of the estate's assets at the time of the owner's death.
An individual legally appointed to manage the rights and/or property of a person incapable of managing her or her own affairs.
Inter Vivos Trust
A revocable or irrevocable trust established during the trustor's lifetime that can entail the distribution of assets to the beneficiary during and after the trustor's lifetime. Also called a Living Trust (revocable).
Any right or ownership in property or assets.
Used to describe a person who has died without a will.
Irrevocable Life Insurance Trust (ILIT)
A trust designed to hold and own life insurance policies. Ownership of the life insurance policy is
transferred to the trustee of the ILIT. Insurance proceeds will be held in the trust for the benefit of
a spouse or other beneficiary throughout his or her lifetime, but cannot be taxed in your estate when
you die. Also called Wealth Replacement Trust.
The ownership of property by two or more people.
Life Insurance Trust
A trust whose principal asset is an individual's life insurance policy.
A revocable trust established during the trustor's lifetime that can entail the distribution of assets
to the beneficiary during and after the trustor's lifetime.
A legal document detailing a person's desires regarding medical treatment when the person is no longer able to communicate his or her wishes.
A deduction allowing for tax-free transfer of assets from one spouse to another.
Power of Attorney
A legal document that gives an individual the authority to act for another.
Powers of Appointment
A right given in a will or trust allowing an individual to decide how to distribute one's property. Called "general" power of appointment if no restrictions are placed on who the distributes may be; otherwise called "limited" or "special."
The process of establishing the validity of a will.
The gift of those assets remaining after specific bequests are made.
Special Needs Trust
A type of trust designed to provide income and/or benefits to a physically or mentally disabled person without reducing their eligibility public assistance such as Social Security, Medicare or Medicaid.
A trust that is created through explicit instructions in a deceased's will. It is commonly used when one wishes to leave assets to a beneficiary, but does not want the assets distributed until a specified time.
A person who dies with a legal will in force.
A legal arrangement in which the grantor (trustor) gives fiduciary control of property to a trustee for the benefit of him/herself or others.
The individual or institution which manages and/or invests assets for the benefit of another.
A legal instrument that directs how a person's estate and assets are to be managed and distributed after his or her death.