Equity - The current market value of an asset less any loan or liability.
Estate - Assets and debts left by an individual at death.
Estate Taxes - Federal or state taxes on the value of assets left at death.
Also called inheritance taxes or death taxes.
Executor - Person or institution named in a Will to carry out its instructions.
Female is Executrix. Also called a Personal Representative.
Federal Estate Tax Exemption - Amount of an individual’s estate that is
exempt from federal estate taxes, scheduled to gradually increase from $1.5
million to $2 milliom in 2007 and 2008; $3.5 million in 2009; no tax in 2010, thereafter $1 million exemption.
Fiduciary - Person having the legal duty to act primarily for another’s
benefit. Implies great confidence and trust, and a high degree of good faith.
Usually associated with a Trustee.
Funding - The process of transferring assets to your Living Trust.
ESTATE PLANNING
Glossary of Terms
