Credit Shelter
Trust
A Credit Shelter Trust is designed to save taxes and benefit the surviving spouse at the same time. It is funded by an amount of money not in excess of the Unified Credit.
Disclaimer Trust
A Disclaimer Trust is a very flexible trust designed to achieve tax saving but to enable the surviving spouse to make decisions after the death of the first spouse to maximize the control of and benefit to the surviving spouse.
Executor
An Executor is a person who carries out the instructions set forth in a Will
Living Trust
A Living Trust is a document designed to avoid probate. It is a Will substitute.
Living Will
A Living Will is a document that gives instructions to healthcare providers. A Living Will can provide that life- sustaining treatment be withheld or aggressively administered. It is usually coupled with a healthcare power of attorney appointing a representative to act on a person's behalf.
Power of Attorney
A Power of Attorney is a document under which a person called a "Principal" appoints another person called an "Agent" and authorizes the Agent to act on behalf of the Principal to perform certain acts outlined in the document.
Unified Credit: The Unified Credit is an amount that can pass to a non-spouse free of federal estate tax. For calendar years 2002 and 2003, the Unified Credit is $1,000,000.
Q-Tip Trust
A Q-Tip stands for Qualified Terminable Interest Property. It is a device often used by persons in second marriages to provide income and some principal for a surviving spouse to take advantage of the marital deduction while preserving assets for the benefit of children of a previous marriage.
Trustee
A Trustee is the person who administers a trust in accordance with its terms.
Will
A Will is a document that distributes assets on death. It also appoints an executor, a trustee and guardian where appropriate.
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