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What Does Intangible Property Mean In Estate Planning?

Assets that is not physical in nature, they generally cannot be touched.  These assets include stocks and bonds (even though these can be represented by physical certificates).  They also include your financial accounts.  Common business intangible assets trademarks, patents, copyrights, goodwill, intellectual property and digital assets (e-mail, blog, photos, etc.).

Example Of Intangible Property In Regards To Estate Planning

The intangible assets in my dad’s estate were the hardest to find and often the hardest to value.

What Does Inheritance Mean In Estate Planning?

Assets received from someone who has died, whether through will, trust, life insurance, retirement plan, deed or other transfer on death assets/accounts.  These assets are specific to the person receiving them and, with special handling, can be retained as an individual asset even if the person is married.  You cannot be forced to accept an inheritance.

Example Of Inheritance In Regards To Estate Planning

My inheritance from my mom’s estate was bigger than I expected.  She had a large insurance policy as well as retirement accounts in addition to her investments and bank accounts.

What Are Issue and Descendants In Estate Planning?

Persons in a generation lower than yours.  This would include your children, grandchildren etc.  Often this term will include children who have been adopted and children who are in utero/en ventra sa mere (conceived, but not yet born).

Example Of Issue and Descendants In Regards To Estate Planning

I currently have six living issue; two children and four grandchildren, one of which was adopted.

What Are Heirs In Estate Planning?

A person that would be entitled by law to inherit from your estate.

Example Of Heirs In Regards To Estate Planning

I am my dad’s sole heir.  When he passes I should inherit everything unless he has a will stating otherwise.

What Does A Guardian Mean In Estate Planning?

A person appointed to care for a minor child or adult needing such care.  This generally covers care for the actual person, and may or may not include care of assets and finances.

Example Of Guardian In Regards To Estate Planning

My brother named me guardian of his daughter in case he and his wife pass. 

What Is A Grantor, Trustor, Settlor, Creator, Donor or Trustmaker Mean In Estate Planning?

A person who sets up a trust.

Example Of Grantor, Trustor, Settlor, Creator, Donor or Trustmaker In Regards To Estate Planning

My attorney just helped me set up a trust for my children.  I am both the trustor and trustee of my new trust.

What Does Fiduciary Mean In Estate Planning?

A person or entity that has a legal duty to act for another person, often a beneficiary.  This term is generally associated with a trustee of a trust.

Example Of Fiduciary In Regards To Estate Planning

My uncle is the trustee of the trust my dad set up for my brother and I.  I know there’s a lot of money in there so I asked him for money for a sport car, but he says he as a fiduciary duty to hold, invest and pay the assets out in our best interests and he doesn’t think a sports car is in my best interest.

 What Does Estate Tax, Inheritance Tax and Death Tax Mean In Estate Planning?

Taxes due on an estate at the federal or state level.  Based on the current federal estate tax exemption 99.9% of current estates will not be subject to this tax.

Example Of Estate Tax, Inheritance Tax and Death Tax In Regards To Estate Planning

I had no idea that my dad’s estate, as a single person, had to be over $11.4 Million dollars before it would be subject to federal estate tax, and a married couple has to have more than $22.8 Million before they will pay federal estate tax.  I hear politicians talking about cutting the federal estate tax all the time, but there’s no way I or anyone I know would ever come close to having to pay it.

What Does Net Estate Mean In Estate Planning?

The value of an estate after debts have been paid.  This amount is used to determine if taxes are due.

Example Of Net Estate In Regards To Estate Planning

After all of the assets had been found and collected and all of the debts had been paid, we took my mom’s net estate and divided it four ways among us kids.

What Does Gross Estate Mean In Estate Planning?

The value of an estate before debts are paid.

Example Of Gross Estate In Regards To Estate Planning

My dad’s gross estate made it seem like he was super wealthy, but after we subtracted his mortgage, car loans, and credit card debts it was clear that he had lived above his means.