Estate plan
Determines how the administration and disposition of one's property will be handled at death. Plan reviews will, trusts, gifting, power of attorney, etc.
Estate Tax
A tax paid on property or assets owned at the time of an individual’s death.
Eulogy
A speech delivered as a tribute to a loved one who has passed away.
Executor/Executrix
An individual appointed through a Will to administer and distribute property upon the testator’s death. Executor is the male version and Executrix is the female form of the word.
Fiduciary
An individual who manages property or acts on behalf of another individual and is placed in a position of trust.
Health Care Proxy (Health Care power of attorney)
A legal document that allows you to appoint someone to make medical decisions should you become unable to competently make them for yourself.
General price list (GPL)
A valuable document distributed by funeral homes that allows consumers to comparison shop the goods and services they want. It must contain identifying information, itemized prices for the various goods and services the funeral service provider sells, and other important disclosures.
Gift tax
Federal tax imposed on donor when a certain amount of assets are given to another person. The tax depends on many factors such as how much was given and over what period of time as well as to how many people. In 2004 individuals were allowed to gift up to $11,000 per person, per year without any tax implications.
Guardian
An individual who has the legal right and duty to take care of another person or another’s property because that person cannot legally handle these responsibilities.
Fixed Annuity
See Annuity.
Intestate or Intestacy
The state of dying without a legal Will where asset distribution is overseen by a Probate Court.
Investment Policy Statement
Formal statement of objectives and constraints for an individual's or organization's investment portfolio. Guidelines include investment objectives, diversification requirements, investment restrictions and other relevant rules that govern the administration of the investment program.
Living Will
Not the type of Will that’s used in estate planning. This is the legal document allowing you to express your wishes as to health care treatment. It makes clear what measures you want taken – or not taken – to keep you alive if you are seriously ill and cannot survive without artificial means or significant intervention.
Long term care insurance
An insurance policy that provides benefits for the chronically ill or disabled over a long period of time.
Mutual Fund
A fund operated by an investment company that pools a large amount of investors’ money and invests it. The monies are invested in a wide variety of assets such as individual company stocks, bonds, and other funds that pool stocks and bonds. Mutual funds provide investors the benefit of diversification (spreading out their money to mitigate risk) and professional management.
Payable on death (POD or TOD)
A simple and inexpensive technique for passing on certain financial assets to heirs without going through probate. It allows you to name beneficiaries to accounts that otherwise wouldn't have beneficiaries.
Postmortem
Occurring after the event of death.
Power of Attorney
A document that authorizes someone to act on another’s behalf.
Power of Appointment
A part of an individual’s Will, deed or trust document that gives someone the right to decide who will receive property or how the property will be used.
Probate
The process of proving that a Will is genuine and distributing the property accordingly.
Retirement account (IRA)
A tax-deferred retirement account that permits individuals to set aside savings with earnings tax-deferred until withdrawals begin at age 59 1/2 or later.
Risk management
The process of analyzing exposure to risk and determining how to best handle such exposure. Typically includes insurance as means of mitigation.
Rollover
The action of moving retirement funds from one account to another. This is a formal government regulated process that when done correctly will not result in any tax penalties.
Stock Certificate
A certificate that represents a shareholders ownership in a company. Certificate reflects the company name and number of shares for which it represents class of stock and voting rights. The number of shares does not necessarily reflect all shares owned as other shares may be on deposit or additional shares may have been acquired due to a stock split.
Testamentary Trust
A trust created by Will after death. Unlike a living trust (inter vivos trust) that was created during the lifetime of the grantor.
Term Insurance
Life insurance that doesn’t feature cash accumulation and provides pure insurance protection for a specified period of time.
Transfer agent
An agent that maintains shareholder records, including purchases, sales, and account balances.
Transfer on death (TOD or POD)
A simple and inexpensive technique for passing on certain financial assets to heirs without going through probate. It allows you to name beneficiaries to accounts that otherwise wouldn't have beneficiaries.
Trust
A legal agreement where you give legal authority to someone else, the trustee, to make financial decisions regarding your property and estate to benefit your beneficiaries. You can also set up a trust to help provide for the needs of adult dependents.
Trustee
A person (or institution) to whom legal title to property is entrusted to use for another's benefit.
Variable Annuity
See Annuity.
Whole-Life Insurance
Permanent life insurance coverage with increasing cash values.
Will
A legal document through which a person declares or designates how their possessions will pass after death.
