Estate Planning

  1. Settlor

    A settlor is the entity that establishes a trust and legally transfers control of an asset to a trustee, who manages it for ...
  2. Understanding How Top Trust Companies Operate

    Trust companies perform a wide range of services related to investment and asset management. Learn why to use a trust company ...
  3. Private Annuity

    A private annuity is an agreement in which an annuitant transfers property to an obligor in exchange for payments for the ...
  4. Probate

    A probate is the legal process in which a will is reviewed to determine whether it is valid and authentic.
  5. Wealth

    Wealth is a measure of the value of all of the assets of worth owned by a person, community, company or country.
  6. Boom And Bust Cycle

    A boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. It is a key characteristic ...
  7. Pre-Market

    Pre-market is trading activity that occurs before the regular market session; it typically occurs between 8:00 and 9:30 a.m. ...
  8. Business Continuity Planning (BCP)

    Business continuity planning is the creation of a strategy to ensure that personnel and assets are protected and able to ...
  9. Family Income Rider

    A family income rider is a life insurance add-on that provides a beneficiary with money equal to the policyholder's monthly ...
  10. Successive Periods

    Successive periods are periods of time that follow one another chronologically and which are linked together by a common ...
  11. Catastrophe Reinsurance

    Catastrophe reinsurance is purchased by an insurance company to reduce its exposure to the financial risks associated with ...
  12. Accumulation Option

    An accumulation option is a policy feature of permanent life insurance that reinvests dividends back into the policy, where ...
  13. Abandonment Clause

    An abandonment clause in a property insurance contract permits the property owner to abandon lost or damaged property and ...
  14. Future Purchase Option

    A future purchase option is a feature of long-term disability insurance that allows policyholders to increase their insurance ...
  15. Entity-Purchase Agreement

    An entity-purchase agreement is a type of business succession plan used by companies that have more than one owner.
  16. Continuous Contract

    A continuous contract is a reinsurance contract that does not have a fixed contract end date and is renewable until terminated ...
  17. Combined Single Limits

    Combined single limits are a provision of an insurance policy that limits the coverage for all components of a claim to a ...
  18. Traditional Whole Life Policy

    A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract ...
  19. Estate Planning: Living Trusts vs. Simple Wills

    A look at wills versus living trusts and when to choose one over the other.
  20. Life Settlement

    A life settlement is the selling of one's life insurance policy to a third party for a one-time cash payment.
  21. Laddering

    Laddering is the promotion of inflated pre-IPO prices for the sake of obtaining a greater allotment of the offering.
  22. Insurance Trust

    An insurance trust is an irrevocable trust set up with a life insurance policy as the asset, allowing the grantor to exempt ...
  23. Level Death Benefit

    A level death benefit is a life insurance payout that is the same whether the insured person dies shortly after purchasing ...
  24. Insurance Inflation Protection

    Insurance inflation protection is designed to allow policyholders to make sure that the benefits they receive can keep up ...
  25. Grantor Retained Annuity Trust (GRAT)

    A grantor retained annuity trust (GRAT) is a financial instrument used in estate planning to minimize taxes on large financial ...
  26. Commutation

    Commutation refers to the rights of beneficiaries to exchange one type of income for another.
  27. Establishing a Revocable Living Trust

    Learn how to establish a revocable living trust, an arrangement that allows you to have more control over your estate — both ...
  28. Credit Shelter Trust - CST

    A Credit Shelter Trust allows a surviving spouse to pass on assets to his or her children estate-tax free.
  29. Death Benefit

    A death benefit is the amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant ...
  30. Average Indexed Monthly Earnings (AIME)

    Average indexed monthly earnings (AIME) is used to determine the primary insurance amount (PIA) that values an individual's ...
  31. Own-Occupation Policy

    An own-occupation policy covers individuals who become disabled and can't perform what they have been trained to perform.
  32. Human-Life Approach

    The human-life approach calculates the amount of life insurance a family needs based on the financial loss they'd experience ...
  33. Guideline Premium And Corridor Test (GPT)

    The Guideline Premium And Corridor Test (GPT) is used to determine whether an insurance product can be taxed as insurance ...
  34. How are trust fund earnings taxed?

    Trust fund earnings that are distributed are paid by the beneficiary. The trust pays taxes on retained earnings and principal ...
  35. Guaranteed Investment Fund (GIF)

    A guaranteed investment fund allows a client to invest in an equity, bond or index fund with the promise of a predefined ...
  36. Assumed Interest Rate (AIR)

    Assumed interest rate (AIR) is the rate of interest or growth rate selected by an insurance company.
  37. Do beneficiaries of a trust pay taxes?

    Beneficiaries of a trust typically pay taxes on distributions from the trust's income, but not on distributions from the ...
  38. Second-To-Die Insurance

    Second-to-die insurance is a type of life insurance on two people that provides benefits to the beneficiaries only after ...
  39. Certain And Continuous

    Certain and continuous is a type of annuity that guarantees a number of payments, even if the annuitant dies.
  40. Trustee

    A trustee is a person or firm that holds or administers property or assets for the benefit of a third party.
  41. When are beneficiaries of a will notified?

    Learn when the beneficiaries of a will must be notified, and understand how this requirement varies depending on whether ...
  42. Insurance Grace Period

    An insurance grace period is a defined amount of time after the premium is due in which a policyholder can make a premium ...
  43. Safe Deposit Box

    A safe deposit box is usually located inside a bank and is used to store valuables.
  44. Mortality And Expense Risk Charge

    A mortality and expense risk charge is a variable annuity fee that compensates insurance companies for risks and expenses ...
  45. Hurricane Deductible

    A hurricane deductible is the amount a homeowner must pay before insurance will cover the damage caused by a hurricane.
  46. Insurance Risk Class

    An insurance risk class has similar characteristics, which are used to determine risks of underwriting a policy and the premium ...
  47. Long-Tail Liability

    A long-tail liability is a type of liability that carries a long settlement period.
  48. Policy Loan

    A policy loan is issued by an insurance company that uses the cash value of a person's life insurance policy as collateral.
  49. Trust Company

    A trust company is a legal entity that acts as fiduciary, agent or trustee on behalf of a person or business.
  50. Transfer On Death - TOD

    A transfer on death designation allows beneficiaries to receive bequeathed assets without going through probate.
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