Planned Giving Glossary

Appreciated Property

Assets, such as real estate or securities, which have increased in value from their cost basis

 

Beneficiary

Person and/or organization named in a will, trust or other legal document to receive an interest in an estate

 

Bequest

Gift of property or assets to an individual or organization as defined in a will   

 

Charitable Income Tax Deduction

Portion of a gift that is deductible from a person’s federal, gift, or estate tax

 

Charitable Gift Annuity

Agreement that pays an annual fixed income for life (for one or two recipients) in exchange for cash, securities or other tangible property.  The rate of return is based on the age(s) of the annuitant(s) at the time the gift is funded.  Payments may start immediately or be deferred to a future date.   

 

Charitable Trust

A trust having a charitable organization as a beneficiary.  Examples include: charitable lead trust, charitable remainder unitrust, and charitable remainder annuity trust.

 

Codicil

An addition or amendment to a will

 

Cost Basis

Donor’s purchase price of an asset

 

Estate Tax

Tax assessed at one's death on the transfer of most types of assets

 

Executor/Personal Representative

Person named in a will who carries out the terms of the estate

 

Fair market value

Price an asset would bring on the open market

 

Income Interest

Right to receive payments from a trust for life or a term of years

 

Intestate

Dying without a will

 

Life Income Gift

Planned gift that makes payments to a donor and/or other beneficiaries for life or a term of years and then distributes the remainder to a charitable organization(s)

 

Probate

Court process for determining the validity of a deceased person’s will and ensuring all property is distributed in accordance with the terms of the will

 

Remainder Interest

Amount remaining in a trust after income payments have ended

 

Retained Life Estate

Gift of a personal residence, vacation home, or farm with the donor’s right to use or live in the property for life or a term of years and the remainder interest going to a charitable organization(s)

 

Testator

Person making the will or testament

 

Testate

Dying with a valid will

 

Trust

Legal instrument created by a person for the benefit of him or herself during life and others during life or upon death

 

Trustee

Individual or organization entrusted with the responsibility of managing all assets placed in a trust

 

Will

Legally executed document that directs how and to whom a person’s property is to be distributed after death