Credit Shelter Trust
A Credit Shelter Trust is designed to save taxes and benefit the
surviving spouse at the same time. It is funded by an amount of money not in
excess of the Unified Credit.
Disclaimer Trust
A Disclaimer Trust is a very flexible trust designed to achieve tax
saving but to enable the surviving spouse to make decisions after the death of
the first spouse to maximize the control of and benefit to the surviving spouse.
Executor
An Executor is a person who carries out the instructions set forth in a Will
Living Trust
A Living Trust is a document designed to avoid probate. It is a Will
substitute.
Living Will
A Living Will is a document that gives instructions to healthcare
providers. A Living Will can provide that life- sustaining treatment be withheld
or aggressively administered. It is usually coupled with a healthcare power of
attorney appointing a representative to act on a person's behalf.
Power of Attorney
A Power of Attorney is a document under which a person called a
"Principal" appoints another person called an "Agent" and authorizes the Agent
to act on behalf of the Principal to perform certain acts outlined in the
document.
Unified Credit: The Unified Credit is an amount that can pass to a non-spouse
free of federal estate tax. For calendar years 2002 and 2003, the Unified Credit
is $1,000,000.
Q-Tip Trust
A Q-Tip stands for Qualified Terminable Interest Property. It is a
device often used by persons in second marriages to provide income and some
principal for a surviving spouse to take advantage of the marital deduction
while preserving assets for the benefit of children of a previous marriage.
Trustee
A Trustee is the person who administers a trust in accordance with
its terms.
Will
A Will is a document that distributes assets on death. It also
appoints an executor, a trustee and guardian where appropriate. |
