Glossary
A
POOLED INCOME FUND - Also called a Charitable Remainder Pooled Income Fund
- is an investment fund much like a mutual fund. It is made up of transfers
by many persons to the fund who receive life income interest in exchange for
their transfers, based on the value of the transfer into the fund and based
on the income earned by the fund.
PROBATE is the legal process of proving a will, appointing an executor, and settling an estate; but by custom, it has come to be understood as the legal process whereby a dead person's estate is administered and distributed.
A QUALIFIED TERMINABLE INTEREST PROPERTY TRUST (QTIP) is a trust often set up to avoid transfer tax on the first spouse's death. The deceased spouse establishes the ultimate disposition of the property, rather than the surviving spouse including the property in their estate. During their lifetime, the surviving spouse receives all income from the principal and, in some cases, has access to the principal.
A RETAINED LIFE ESTATE is a gift plan defined by federal tax law allowing the donation of a personal residence (to include a vacation home) or farm with the donor retaining the right to life enjoyment. A life estate may be retained for one or more lives or it may be retained for a term of years. All routine expenses - maintenance fees, property taxes, repairs, etc. - are the responsibility of the donor. The donor receives an income tax deduction for a significant portion of the value of the contributed property (the property is irrevocably deeded to the charity) and estate tax benefits.
TENANTS
IN COMMON is a property ownership arrangement in which two or more persons
own property jointly. It is not necessary that the ownership consist of equal
shares or percentages of the property. Generally there is no right of survivorship
when a co-owner dies. The share of the property belonging to the deceased co-owner
passes to his or her heirs and the shares of the remaining original co-owners
do not change.
TESTAMENTARY TRUST - A will can have a trust written into it, called a Testamentary Trust, which is set into motion by the Court after the will reaches a certain point of execution, and is used only after the death of the person whose estate it represents.
A TRUST is defined as any arrangement where property is to be held and administered by a trustee for the benefit of those for whom the trust was created. Depending on the type and how it is established, a trust may be revocable (changeable) or irrevocable (not changeable).
The TRUSTEE is the person or institution named by a person making the trust, or appointed by the court, to carry out the terms of the trust. Assuming a trust has been set up through a will, when the executor's job is finished, the trustee's job begins.
A TRUSTOR is the individual who establishes the trust. Also referred to as the GRANTOR and/or SETTLOR.
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WILL is the legal expression or declaration of a person's mind or wishes
as to the disposition of the person's property, to be performed or take effect
after the person's death.
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Important note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for WFSU by Future Focus. Please report any problems to section webmaster. Revised: September 14, 2010 14:54.