Miscellaneous
This document allows someone to make financial decisions on someone else's behalf.
What is a power of attorney?
This is the legal maximum ownership you can have in a property. The owner shares the rights with no one else.
What is absolute ownership/fee simple?
This is the annual gift tax exclusion amount.
What is $15,000?
When a property or security receives a basis equal to FMV at DOD
What is stepped-up basis?
This type of life insurance policy has no cash value.
What is term insurance?
This is the look-back period for determining Medicaid eligibility and qualifying assets.
What is 60 months?
This is a type of ownership, where all tenants have an equal right to the account's assets in the event of the death of the other owner.
What is joint tenancy with right of survivorship?
This rule of taxation allows married couples to split the value of a gift between the two of them.
What is gift splitting?
An estate must pass through this process if no beneficiaries are listed on an account.
What is probate?
This type of policy ensures that the insurance company (not the insured) bears risk on cash value.
What is a whole life policy?
This type of agreement allows a company's partners or other shareholders to purchase the interest or shares of a partner who dies. The mechanism often relies on a life insurance policy in the event of a death to facilitate that exchange of value.
What is a cross-purchase agreement?
This is the ownership of property by two or more people, each of whom may have a possible unequal interest in a property.
What is tenancy in common?
What is a 529? (5 years)
This is type of account allows for an IRS workaround for the annual gift tax limitation.
A type of trust agreement in which the contributed assets are passed down to the grantor's grandchildren, thus "skipping" the next generation, the grantor's children.
What is a generation-skipping trust (GST)?
This life insurance rider allows the insured to collect a portion or all of their death benefit prior to death.
What is the accelerated death benefit rider?
A trust constructed with a life insurance policy as the asset owned by the trust.
What is an Irrevocable Life Insurance Trust (ILIT)?
This is a limited form of joint tenancy with right of survivorship that can exist only between spouses
What is tenancy by the entirety?
This type of account allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time.
What is a donor advised fund?
This type of probate is sometimes necessary for a dependent that owns property in more than one state.
What is ancillary probate?
This type of policy has coverage that decreases over the life of the policy at a predetermined rate.
What is decreasing term insurance?