Gift Planning 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

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