Estate & Trust Administration For Dummies, 2nd Edition

Appendix A

Glossary

administrator:

A person appointed by the probate court to administer the estate of a decedent when the decedent left no valid will.

amortization:

Reducing the cost of an intangible asset over its projected life.

ancillary administration:

Separate probate of real property in the jurisdiction in which it’s located.

annual account:

All of a trust or estate’s activity for a 12-month period.

annuity:

Income paid in a series of payments.

applicable exclusion amount:

The total amount exempted from gift and/or estate tax.

applicable federal rate (AFR):

The minimum interest rate you must charge on a loan in order for it to be considered fair market rate.

assets:

Items of value owned by any entity, whether an individual, corporation, partnership, trust, or estate.

basis:

The acquisition cost of any asset.

beneficial interest:

The right to receive some benefit, profit, or distribution from a trust.

beneficiary:

The person or entity receiving a benefit from an estate or trust.

bequest:

A legacy or gift of personal property by will.

bill:

Any short-term loan packaged as an investment product and issued with a maturity of one year or less.

bond (fixed-income securities):

Any long-term loan packaged as an investment product and issued with a maturity of more than ten years.

by right of representation:

See per stirpes

Charitable Lead Annuity Trust (CLAT):

A trust that makes a fixed number of annual payments, calculated as a percentage of the asset value as ...