Glossary of Terms

Gain - The difference between what you receive for an asset when it is sold
and what you paid for it. Used to determine the amount of capital gains tax
due.

Generation Skipping Transfer Tax - A steep (55%) tax on assets that
"skip" a generation and are left directly to grandchildren and younger
generations. Everyone has an exemption from this tax. Prior to 1999, the
exemption was $1 million. It is now tied to inflation and was increased in
1999 to $1,010,000. In 2007 and 2008 the exemption was $2 million, $3.5 million in 2009, no tax in 2010, with a tax rate up to 45%.

Gift - A transfer from one individual to another without fair compensation.

Gift Tax - A federal tax on gifts made while you are living. Currently $12,000
per person per year is exempt from gift tax. Also see "Annual Exclusion."
Lifetime exclusion of $1 million then tax rate at 45%.

Grantor - The person who sets up or creates the Trust. The person whose
Trust it is. Also called Creator, Settlor, Trustor, or Donor.

Gross Estate - The value of an estate before debts are paid.

Guardianship - See "Conservatorship."

Health Care Proxy - See "Advance Health Care Directive."

Heir - One who is entitled by law to receive part of your estate.

Holographic Will - A handwritten Will.

Homestead Exemption - Portion of your residence (dwelling and
surrounding land) that cannot be sold to satisfy a creditor’s claim while you
are living.