Glossary of Planned Giving Terms
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.
One named in a will, trust or other legal document to receive an interest in as estate.
A direction in a will to pay over or distribute person property is a bequest. Also called a legacy.
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.
A legal instrument made to modify an earlier will.
The original value of an asset, such as stock, before its appreciation or depreciation.
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.
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.
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.
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.
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.
The process of providing a will’s validity; used loosely to mean the administration of an estate.
A trust established through the will of the grantor.
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.
A legal instrument disposing of a person’s property at the time of his or her death.