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Glossary


Glossary of Planned Giving Terms

Annuity
A contractual agreement to pay a fixed sum of money to an individual at regular intervals. A charitable gift annuity makes lifetime payments to the benefactor and/or another individual.

Beneficiary
One named in a will, trust or other legal document to receive an interest in as estate.

Bequest
A direction in a will to pay over or distribute person property is a bequest. Also called a legacy.

Basis
See Cost Basis

Capital Gains Tax
A federal tax on the appreciation of an asset between its purchase and sale prices.

Charitable Gift Annuity
An agreement in which you transfer cash of other assets to a charitable organization in exchange for its promise to pay you an annuity for life.

Codicil
A legal instrument made to modify an earlier will.

Cost Basis
The original value of an asset, such as stock, before its appreciation or depreciation.

Estate Tax
A tax on the net value of property subject to tax (“taxable estate”) plus the sum of the “adjusted taxable gifts” at the time of a person’s death. It is based on the right to transfer or transmit.

Executor
The person named in a will to administer the estate (known is some states as the “personal representative”).

Fair Market Value
The price that an asset would bring on the open market.

Gift Tax
A tax on the donor of inter-vivos gifts (those made during life), based on the right to transfer or transmit, and payable primarily by the donor.

Gross Estate
Total property or assets held by an individual as defined for federal estate tax purposes.

Life Income Gift
A planned gift that makes payments to the benefactor and/or other beneficiaries for the lifetime, then distributes the remainder to charity.

Planned Giving
A way for generous individuals to make larger gifts than they otherwise could make by using planning techniques to provide for both charity and their heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate.

Probate
The process of providing a will’s validity; used loosely to mean the administration of an estate.

Testamentary Trust
A trust established through the will of the grantor.

Trustee
An individual or organization carrying out the wishes of the person who established the trust, paying income to the beneficiaries and preserving the principal for ultimate distribution.

Will
A legal instrument disposing of a person’s property at the time of his or her death.

She Wanted To Help Kids

Jan Neilson's Story:


“Jane was very interested in young children,” said attorney David Pierce of San Marino who delivered a generous check to Five Acres from Jane F. Neilson’s trust.  After Mrs. Neilson’s only son died in a traffic accident Mr. Pierce helped her select charities to be the beneficiaries of her estate. She chose Five Acres simply because she loved children. Over the years Mrs. Neilson and Mr. Pierce became close friends. “She was gorgeous as a young woman and had the greatest sense of humor of anybody I ever knew,” he noted. “She would be happy knowing her money will be well spent.”


For information about ways to help Five Acres’ children and families in your estate plan, please contact Cynthia Nickell at (626) 798-6793 Ext. 2250 or email her.