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Planned Giving Glossary
- Actuarial
- In gift planning, it refers to the factors used to calculate the value of lifetime payments to individuals.
- Appraisal
- An assessment of the value of a piece of property. Donors contributing real or tangible personal property (art, books, collectibles, etc.) must secure an independent appraisal of that property to substantiate the value they claim as a charitable deduction.
- Appreciated Property
- Securities, real estate, or any other property that has risen in value since the individual acquired it. Generally, appreciated property held by a donor for a year or more may be donated at full fair market value with no capital gains cost.
- Basis
- The donor’s purchase price of an asset, possibly adjusted to reflect subsequent costs or depreciation. If you bought stock for $100 per share and sold it for $175, your cost basis in the stock is $100 per share.
- Beneficiary
- The recipient of a bequest from a will or a distribution from a trust, insurance policy, or retirement plan.
- Bequest
- A gift of property or cash to an individual or organization under a will.
- Capital Gains Tax
- A federal tax on the appreciation in an asset between its purchase and sale prices.
- Codicil
- An addition to a will that either modifies or revokes part of it.
- Cost Basis
- See Basis, above.
- Donor
- One who makes a gift.
- Estate
- All of the real or personal property in which a person has a right or interest.
- Executor
- The person named in a will to administer the estate.
- Fair Market Value
- The price that an asset would bring on the open market.
- Grantor
- The individual transferring property into a trust.
- Income Interest
- In a trust, the right to receive payments from the trust for lifetime or a term of years.
- Intestacy
- When a person dies without a valid will, state laws will determine how the individual’s estate will be divided by any heirs. If there are no heirs, then the state absorbs any remaining probate assets.
- Irrevocable gift
- A gift that cannot be annulled, undone, or changed.
- Life Income Gift
- A Planned Gift that makes payments to the benefactor and/or other beneficiaries for life or a term of years, then distributes the remainder to charity.
- Personal Property
- See Tangible Personal Property.
- Planned Giving
- Structuring a charitable gift to maximize personal, financial, and tax benefits for the donor — and a meaningful gift to charity — at the same time.
- Power of Attorney
- Legally appointing an individual as your “Attorney-in-Fact,” allowing that person to take charge of your financial affairs in the event of incompetency or disability.
- Present Value
- The value, in today’s dollars, of assets to be received at some future time.
- Principal
- The initial sum invested or the remainder of that sum after payments have been made.
- Qualified Appraisal
- A written appraisal conducted by a knowledgeable professional to determine the fair market value of property (other than marketable securities) donated to a charity. If the donor wishes to use the value of the donated property for a charitable income tax deduction, the appraisal must be obtained by the donor and attached to his or her tax return only if the property has a value of $5,000 or more.
- Real Property
- Immovable property; land, together with all the property on it that cannot be moved, together with any attached rights; often referred to as “real estate.”
- Remainder Interest
- In a trust, the portion of the principal left after the income interest has been paid to the beneficiary. A charitable remainder trust makes payments to the benefactor or other individuals and then passes its remainder to charity.
- Retained Life Estate
- The right to use property for life (usually a residence or a farm) after contributing the remainder interest to a charitable institution.
- Retirement Accounts
- Qualified plans like IRAs and 401(k) accounts that permit individuals to accumulate savings tax-free for retirement.
- Tangible Personal Property
- Includes movable objects (e.g. china, jewelry , books, art, etc.) but does not include land, buildings, or other forms of real estate (real property—see above), or stocks, bonds, copyrights, cash, or other "intangible" personal property.
- Trust
- A transfer of property by the grantor to the care of an individual or organization, for the benefit of the grantor or others.
- Trust Property
- Property held in trust by one person (trustee) for the benefit of another (beneficiary).
- Trust Term
- The length of time during which a trust is in existence (it may be for a specified number of years, or for the lifetime of one or more individuals).
- Trustee
- An individual or organization carrying out the wishes of the person who established the trust, making payments to the beneficiaries and preserving the principal for ultimate distribution.
- Variable Income
- Payments received on a regular basis that are subject to change, not fixed.
- Will
- A document by which a donor regulates the rights of others over his or her property or family after death.
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