Call us at 888-674-1400 Tacoma 888-829-5296 Poulsbo or click here to arrange a complimentary initial consultation.
Click on a link below to jump to another section
A - E F - J K - O P - T U - Z
K
KEY MAN INSURANCE:
Insurance purchased for the protection of a business from the financial loss caused by death or disability of a vital member of the firm.
KIDDIE TAX:
A tax on the unearned income of a minor child who has not reached the age fourteen before the close of the taxable year and who has at least one living parent, under which all unearned income exceeding a certain minimum amount will be taxed to the child at the parent's marginal tax rate.
L
LACK OF MARKETABILITY DISCOUNT:
A discount that is frequently applied to units or interests in closely held entities such as limited partnerships, limited liability companies or corporations due to the restrictions placed on the transfer of those interests or the lack of a market for those interests.
LAND TRUST:
An unincorporated association for holding real property by putting the title in one or more trustees for the benefit of the members whose interests are evidenced by certificates or copies of the trust documents.
LAPSE:
The falling of a gift into the residuary estate by reason of the death of the donee or beneficiary during the testator's lifetime.
LAST WILL AND TESTAMENT:
A legally enforceable declaration of a person's wishes regarding matters after his or her death and not operative until death; usually but not always relating to property; revocable (or amendable by means of a codicil) up to the time of death or loss of mental capacity to make a valid Will.
LEGACY:
A gift of personal property by Will; the same as a bequest. A person receiving such a gift is called a legatee.
LEGAL CHARITY:
One that comes within the legal definition of a charity. Not automatically a 501(c)(3) for federal tax purposes.
LETTERS OF CONSERVATORSHIP OR GUARDIANSHIP:
A certificate of authority issued by the court to an individual or corporate fiduciary to serve as conservator or guardian of the property of a person.
LETTERS TESTAMENTARY:
A certificate of authority to settle a particular estate issued by the appointing court to the executor named in the Will; to be distinguished from letters of administration.
LIEN:
An encumbrance on property-as to secure the payment of money.
LIFE BENEFICIARY OR LIFE INTEREST:
The beneficiary of a trust usually for the term of his own life, but it may be for the life of some other person. Life interest is the estate or interest that a person has in property that will endure only during his own or someone else's lifetime.
LIFE TENANT:
One who owns an estate in real property for his own life or for another person's life or for an indefinite period limited by a lifetime.
LIMITED GUARDIANSHIP:
Some states have created a limited guardianship which allows a partially disabled or incompetent person to delegate limited powers and authority to the limited guardian.
LIMITED POWER OF APPOINTMENT:
A power of the donee (the one who has the power) to pass on an interest in property that is limited in some way-as to or for whom or to the time within which he must exercise the power; also known as special power; the opposite of general power of appointment; all powers that are not general are special or limited powers.
LIVING TRUST:
A trust that becomes operative during the lifetime of the settler (Grantor); as opposed to a trust under will. The same as a trust inter vivos.
LIVING WILL:
A document which allows a person to state In advance his or her wishes regarding the use or removal of life-sustaining or death-delaying procedures in the event of a terminal illness or injury.
M
MARITAL DEDUCTION:
The portion of a decedent's estate that may be given to the surviving wife or husband without its becoming subject to the federal estate tax levied against the decedent's estate; a term that came into general use under the Internal Revenue Act of 1954.
MARITAL PROPERTY:
A term generally referring to property acquired by either spouse during the course of the marriage, in which each spouse possesses an interest in the event of death or marital dissolution
MARITAL RIGHTS:
The rights that a husband and wife have in each other's property.
MARKETABLE TlTLE:
A title which a reasonably prudent person, knowing all the facts, regards and accepts as good.
MASSACHUSETTS TRUST:
An unincorporated organization created for profit under a written instrument or declaration of trust, by the terms of which the property held in trust is managed by compensated trustees for the benefit of persons whose legal interests are represented by transferable certificates of participation or shares; also called business trust.
MINOR:
A person under legal age, that is, under the age at which he or she is accorded legal rights.
MINORITY DISCOUNT:
A discount applied to the value of an ownership interest in an entity that is not publicly traded, such as a limited partnership, limited liability company or corporation. The discount reflects that a minority interest in an entity usually has less value than a controlling interest.
N
NATURAL GUARDIAN:
The parent of a minor; originally the father but now either the father or the mother. Natural guardianship relates only to the person of a minor.
NOMINEE:
A person named for an office position, or duty; in trust business, usually the person, firm, or corporation in whose name registered securities are held.
NON-SKIP PERSON:
For generation-skipping tax purposes, any person or trust that is not a skip person. For example, the child of a transferor is a non-skip person.
Click on a link below to jump to another section
A - E F - J K - O P - T U - Z
Call us at 888-674-1400 Tacoma 888-829-5296 Poulsbo or click here to arrange a complimentary initial consultation.
NOTE: The information provided herein is for general dissemination and not intended as legal advice or for use in a particular situation. Please contact our office or other qualified attorney.
