| Estate and Trust Administration: General Info FAQ Glossary Questions to ask yourself |
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Glossary |
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Beneficiary:
The Beneficiary is the person
benefiting from the will, trust, insurance policy or other document.
Credit Shelter Trust: The Credit Shelter Trust is designed to minimize federal estate taxes. It is essentially a trust for the benefit of the family. It restricts access by the surviving spouse and uses the $1,000,000 exemption of the first spouse to die. Executor: The
Executor is the person named in the Will to administer the estate. The
Executor’s duties include gathering the assets, paying the bills,
preparing and filing all of the necessary state and federal tax returns,
preparing and filing an accounting and distributing assets in accordance
with the Will. Federal Estate Tax Return: A Federal Estate Tax Return (Form 706) is an extremely detailed tax return that must be filed with the Internal Revenue Service within nine (9) months of the death of a decedent if the decedent’s estate exceeded $1,000,000 in calendar year 2002 or 2003. Irrevocable Trust:
An Irrevocable Trust is a trust where the
terms of which cannot be changed or terminated. New Jersey Inheritance Tax Return: A New Jersey Inheritance Tax Return must be filed within eight (8) months of the decedent’s date of death. There is no tax due on assets going to a spouse or lineal ascendants or descendents. Paperwork must be filed with the New Jersey Inheritance Tax Branch if real estate is involved in many instances even if no tax is due. Prudent Investor Act: The Prudent Investor Act is a law requiring executors, trustees and other fiduciaries to invest the assets under their control in such a manner as to preserve principal and to maximize growth for the benefit of the beneficiaries. Principal and Income Act: The Principal and Income Act is a law which requires executors, trustees and other persons serving in a fiduciary capacity to account for all items of income and principal and to allocate certain items to income and principal. Q-tip Trust: Q-tip stands for Qualified Terminable Interest Property. This is a trust established for the benefit of the surviving spouse and no one else. It is designed to take advantage of the marital deduction and minimize federal estate taxes Trustee: The Trustee is the person named to administer Trust assets. The Trustees duties include gathering the trust asset, valuing them, preparing and filing any necessary tax returns with the federal and state taxing authorities, preparing and filing periodic accountings and making distribution in accordance with the terms of the trust documents. |