Glossary of Terms

 

Administrator

One appointed by the court to manage an estate when he/she dies without leaving a will. Also known as an executor.

 

Annuity

A fixed sum of money which is paid yearly or at regular intervals.

 

Appreciated Property

Property that has increased in value, such as real estate or stocks.

 

Beneficiary

A person(s) or entity designated to receive some form of benefit from a legal will or contract from the deceased such as an insurance policy or estate.

 

Bequest

The leaving of something such as personal property or any other assets through a will.

 

Charitable Gift Annuity

The transferring of gifts (cash or other assets) to a charitable organization with the promise that the organization will pay you an annuity for a set term or life.

 

Charitable Trust

A charitable organization is designated as the beneficiary of a trust's assets.

 

Codicil

An addition to a will modifying, explaining or changing the terms of or otherwise qualifying the terms of the will.

 

Cost Basis

The original value of a sum of money one invests into a particular fund or security before appreciation or depreciation.

 

Durable Power of Attorney

Giving legal authority to an individual to act on a person's behalf should they become unable to do so.

 

Endowment

A minimum initial contribution level required to annually generate thereafter the amount of interest earnings necessary to fund the program of the donor's declaration (i.e., scholarships, education, etc.). Donors can make additional contributions to an endowment and the interest earnings generated thereof would be expended in accordance with the guidelines set forth at the endowment's inception. Endowments can be named for the purpose of carrying on one's legacy in perpetuity.

 

Estate Planning

Process of giving what you have, to whom you want, when and how you want.

 

Estate Tax

A tax on the transfer of property at one's death.

 

Executor

The person given authority per legal documentation to manage an estate, collect and distribute property and pay debts according to the will.

 

Expendable Fund Scholarship

A scholarship without an accompanying endowment or with an account that contains less than the minimum endowment of $10,000 requirement. An account is created for the scholarship and contributions are distributed to that particular account. The scholarship is awarded each year until the fund is depleted.

 

Fiduciary

One who is legally responsible for the distribution, investment and management of funds. Examples are administrators, executors and trustees.

 

Gift-In-Kind

Donation of a Non-monetary asset to charity.

 

Gift Tax

A tax that the person making a gift will pay rather than the person receiving the gift.

 

Grantor

The seller of real property or someone who transfers assets into a trust to benefit another.

 

Gross Estate

The total amount of an individual's property which is subject to estate and gift tax.

 

Guardian

A person who is legally entrusted by law to care for and manage the property and rights of one who is unable to care for and manage their own affairs.

 

Interest

The rights, advantage and ownership one has in property.

 

Intestate

The succession of heirs after an individual dies without having a will.

 

Life Insurance Trust

A trust that has the proceeds of an individual's life insurance policy as its principal.

 

Living Trust

A trust established to ensure that property and assets are transferred to an heir(s) according to the wishes of the deceased.

 

Living Will

Legal right to refuse medical treatment or artificial support from healthcare providers in the case of a terminal illness or accident.

 

Marital Deduction

Spousal transfer of unlimited property which is free of estate and gift tax.

 

Memorial Gift

A gift/donation given in memory of a loved one, friend or colleague. Permanent endowments are often funded with memorial gifts enabling one's legacy to be carried on in perpetuity.

 

Power of Attorney

Documentation stating that one person has the legal authority to act on behalf of another in legal and business matters.

 

Probate

When the court must determine the legal validity of one's will.

 

Testamentary Trust

When a trust is created upon death by the terms of the deceased's will.

 

Testator

A person who leaves a will when they die.

 

Trust

A legal document created during the lifetime or at the death of someone in order to benefit another.

 

Trustee

The party given legal responsibility of property to be held in the best interest or subsequent benefit of another.

 

Will

A legally binding document that gives direction as to the distribution of property and assets after death.