A Trust - The surviving spouse’s portion of an A-B Trust. Also called Marital
Trust or Survivor’s Trust.
A-B Trust - A Living Trust with a provision that lets you provide for your
surviving spouse, keep control over who will receive your assets after your
spouse dies, and leave up to $1.35 million (in 2000 and 2001) to your
Beneficiaries, estate-tax free. (This amount will increase over the next
several years as the federal estate tax exemption increases. By the year
2006, an A-B Living Trust or Disclaimer Trust will let you and your spouse leave your Beneficiaries up to $2 million estate-tax free, by 2007 and 2008 $ 4 million, 2009 $7 million, 2010 no tax, then $2 million in 2011 and with no probate.)
Administration - The court-supervised distribution of an estate during
probate. Also used to describe the same process for a Trust after the
Grantor dies.
Administrator - Person named by the court to represent a probate estate
when there is no Will or the Will did not name an Executor. Female is
Administratix. Also called Personal Representative.
Alternate Beneficiary - Person or organization named to receive your assets
if the primary Beneficiaries named in your Trust die before you do.
Ancillary Administration - An additional probate in another state. Typically
required when you own real estate in another state that is not titled in the
name of your Trust.
Annual Exclusion - Amount you can give someone each year without
having to file a gift tax return or pay a gift tax. Currently $12,000 per
recipient ($24,000 if married).
Assets - Basically, anything you own, including your home and other real
estate, bank accounts, life insurance, investments, furniture, jewelry, art,
clothing, and collectibles.
Assignment - A short document that transfers your interest in assets from
your name to another. Often used when transferring assets to a Trust.
B Trust - The deceased spouse’s portion of an A-B Trust. Also called Credit
Shelter or Bypass Trust.
Basis - What you paid for an asset. The value that is used to determine
gain or loss for income tax purposes.
Beneficiaries - In a Living Trust, the persons and/or organizations who
receive the Trust assets (or benefit from the Trust assets) after the death of
the Trust Grantor.
By-Pass Trust - Another name for the "B" part of an A-B Living Trust
because the assets in this Trust bypass federal estate taxes.
ESTATE PLANNING
Glossary of Terms
