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"Estate Planning Definitions"


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Annual Gift Tax Exclusion:
Technique to allow gifts without the imposition of estate or gift taxes.
Children's or Grandchildren's Irrevocable Education Trust:
A Trust used by parents and grandparents for a child's or grandchild's education.
Charitable Remainder Interest Trust:
A trust whereby donors transfer property to a charitable Trust and retain an income stream from the property transferred. The donor receives a charitable contribution income tax deduction, and avoids a capital gains tax on transferred property.
Family Limited Partnership:
An entity used to:
1. Provide asset protection for partnership property from the creditors of a partner
2. Provide protection for limited partners from creditors
3. Enable gifts to children and parents maintaining management control
4. Reduce transfer tax value of property.
Fractional Interest Gift:
Allows a donor to transfer partial interests in real property to donees and obtain fractional interest discounts for estate and gift tax purposes.
Is the process that entails transferring assets you own as an individual into the name of your Trust.
Generation Skipping Tax:
This is a tax levied on assets that are given to individuals who are more than one generation away from the donor. An example would be a grandparent giving an asset to a grandchild either during the grandparent's life or at death.
Is a court-supervised proceeding which names an individual or entity to manage the affairs of an incapacitated person. A guardianship may also include the duty to care for the incapacitated person.