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THE ESTATE TAX ("Death Tax").

SHOULD YOU CARE?

What is the Estate Tax?  The estate tax, also sometimes refeerred to as the death tax, is a federal tax (some states also impose their own version of a death tax) that occurs on some estates valued over a certain amount upon your death.

Estate Planning Glossary

Assets

Anything you own, including your home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, art, clothing, and collectibles.

 

Beneficiaries

In a living trust, the persons and/or organizations who recieve the assets of the trust, or benefit from the trust assets, after the death of the trust settlor.

 

Certificate of Trust

 

Codicil

A written change or amendment to a Wll.

 

Community Property

 

Conservatorship

 

Disclaim

To refuse to accept a gift or inheritance so it can go to the recipient who is next in line.

 

Distribution

Payment in cash ot asset(s) to one who is entitled to receive it.

 

Estate

Assets and debts left by an individual at death.

 

Estate Taxes

 

Executor

Person or insitution named in a will to carry out its instructions.  A Female executor is called an Executrix.  Also called a personal representative.

 

Fiduciary

 

Funding

The process of transferring assets to your living trust.

 

Heir

One who is entitled by law to receive part of your estate.

 

Holographic Will

A handwritten will.

 

Incapacitated/Incompetent

Unable to manage one's own affairs, either temporarily or permanently.  Lack of legal power.

 

Inheritance

The assets received from someone who has died.

 

Inter vivos

 

Irrevocable Trust

A trust that cannot be changed (revoked) or cancelled once it is set-up.  Opposite of a revocable trust.

 

Intestate

Without a will.

 

Living Trust

 

Personal Property

 

Pour Over Will

 

Real Property

Land and property that is permanently attached to land (like a building or a house).

 

Revocable Trust

 

Separate Property

Generally, all assets you acquire prior to marriage and assets acquired by gift or inheritance during marriage.

 

Settlor

 

Special Gifts

 

Special Needs Trust

 

Spouse

Husband or wife.

 

Surviving Spouse

The spouse who is living after one spouse has died.

 

Survivor's Trust

 

Successor Trustee

 

Testamentary Trust

A trust in a will.  Can only go into effect at death.  Does not avoid probate.

 

Trust

An entity that holds assets for the benefit of certain other persons or entities.

 

Trustee

Person or institution who manages and distributes another's assets according to the instructions in the trust document.

 

Trustor

 

Totten Trust

 

Will

A written document with instructions for disposing of assets after death.  A will can only be enforced through the probate court.

 

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