Family Law Child Support
Peace Talks Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Basis
A tax term
which refers to the value of property for the purposes of determining
whether or not a profit or loss has been realized upon sale or transfer.
For the purchase and subsequent sale of a home, the basis generally refers
to the original sale price plus any capital improvements and costs of
closing. Stepped Up Basis refers to the value at the time of the death
of an owner or co-owner. Rather than using the original purchase price,
the deceased owner’s basis is calculated as the value as of date of death.
Beneficiary
Person or legal entity which receives gifts of bequests made under a will,
trust, retirement plan, insurance policy, etc.
Bequest
The gift
made to a beneficiary, an older term describing the gift made through
a will provision leaving property to a person.
Bond
A guarantee
of payment. Generally, in estate planning, this is a document which guarantees
payment in the event that a person responsible for money or property distribution
does not act in accordance with the will or trust, the law, or his or
her fiduciary duties. Bonds are generally purchased through a bonding
company for 10% of the face value of the bond, which is based on the amount
of money or property at stake.
Bypass trust
A trust which creates a life estate for a beneficiary with the trust principal
going to a final beneficiary when the life beneficiary dies. For example,
money may be left for a child, with the child’s parent as the life beneficiary.
The parent may, according to the terms of the trust, use the income and/or
property during his or her life, with the principal going to the child
when the parent dies.
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