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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.
Funding:
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.
Guardianship/Conservatorship:
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.