Estate Planning

  1. Assumed Interest Rate (AIR)

    Assumed interest rate (AIR) is the rate of interest or growth rate selected by an insurance company.
  2. 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 ...
  3. 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 ...
  4. Certain And Continuous

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

    A trustee is a person or firm that holds or administers property or assets for the benefit of a third party.
  6. 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 ...
  7. Using an LLC for Estate Planning

    An LLC is a powerful tool for estate planning. By establishing a family LLC, parents can distribute assets to their children ...
  8. 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 ...
  9. Safe Deposit Box

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

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

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

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

    A long-tail liability is a type of liability that carries a long settlement period.
  14. 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.
  15. Trust Company

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

    A transfer on death designation allows beneficiaries to receive bequeathed assets without going through probate.
  17. Income In Respect Of A Decedent - IRD

    Income in Respect of a Decedent (IRD) is untaxed income that a decedent earned or was meant to receive before death.
  18. Family Limited Partnership - FLP

    A Family Limited Partnership (FLP) allows family members to own shares of a family business while securing estate and gift ...
  19. Surrender Charge

    A surrender charge is a fee levied on a life insurance policyholder upon cancellation of their life insurance policy.
  20. Trust Property

    Trust property includes assets such as securities, cash and property that are managed by a trustee for the benefit of designated ...
  21. Hazard Insurance

    Hazard insurance protects a property owner against damage caused by fires, severe storms, earthquakes or other natural events.
  22. Endowment

    An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for ...
  23. How to set up a trust fund if you're not rich

    You don't need to be wealthy to create your own trust fund. Here's why and how to go about it.
  24. What are the pros and cons of naming a trust as the beneficiary of a retirement account?

    Basically, naming a trust as the beneficiary of a retirement account depends on how many people you want the account's proceeds ...
  25. Living Trust

    A living trust is established in an individual's lifetime and it bypasses probate upon death.
  26. Aggregate Stop-Loss Insurance

    Aggregate stop-loss insurance is an insurance policy that limits claim coverage (losses) to a specific amount.
  27. Credit Insurance

    Credit insurance is a type of insurance that pays off one or more existing debts in the event of a death, disability, or ...
  28. Bare Trust

    A bare trust is a type of trust that provides beneficiaries with immediate and absolute ownership of its capital and the ...
  29. Dynasty Trust

    A dynasty trust is designed to grow wealth for a grantor's descendants while offering protection from transfer taxes like ...
  30. All Risks

    All risks is a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit.
  31. Chartered Life Underwriter (CLU)

    A chartered life underwriter (CLU) is a professional designation for individuals who wish to specialize in life insurance ...
  32. Uninsurable Risk

    Uninsurable risk is a condition that poses unknowable or unacceptable risk of loss.
  33. Grantor Trust Rules

    Grantor Trust Rules outline the responsibilities of the trust's creator for income and estate tax purposes.
  34. Cash Balance Pensions: Pros, Cons for Small Biz

    Are cash balance pensions the right solution for your small business clients?
  35. Financial Adviser

    A financial adviser (or advisor) is a professional who provides financial guidance to clients based on their needs and goals.
  36. Revocable Trusts 101: How They Work

    Unsure how your assets will be dispersed once you're gone? Here's a revocable trust can help.
  37. Variable Annuities: The Pros and Cons

    Variable annuities are one of the most complicated financial instruments—weighing the pros and cons.
  38. Why Your Will Should Name Designated Beneficiaries

    Find out how to make the tough decisions when it comes to choosing beneficiaries for your will.
  39. A Quick Guide to High-Net-Worth Estate Planning

    A quick estate planning guide for high-net-worth individuals to help minimize taxes and costs.
  40. 10 Sources of Nontaxable Income

    Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.
  41. Letters of Instruction: Don't leave life without one

    A letter of instruction, or letter of intent, is a simple document that can take the guesswork and headache out of settling ...
  42. What the Gift Tax Rules Mandate

    The lifetime maximum for gift taxes is now $5.6 million. Here's how the gift tax works.
  43. What to do when you're left out of a will

    There are several legal steps you can take if you are left out of a will.
  44. One-Stop Shop

    One-stop shop is a company or a location that offers a multitude of services to a client or a customer.
  45. Getting Started On Your Estate Plan

    With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
  46. Pick The Perfect Trust

    Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
  47. Surprising Uses for Trust Funds

    Here are five common situations where a trust fund makes financial sense.
  48. How is Warren Buffett Plan Bequeathing his Estate?

    Find out how much Warren Buffett is leaving for his heirs and how he wants the funds invested after his death. Learn about ...
  49. Your Estate: The Best Assets to Leave to Family

    When it comes to estate planning, there are three main factors to consider when distributing assets: liquidity, sentiment ...
  50. Transfer

    A change in ownership of an asset, or a movement of funds and/or assets from one account to another. A transfer may also ...
Hot Definitions
  1. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  2. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  3. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  4. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  5. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  6. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
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