Several financial terms are used throughout our Planned Giving pages. Below you will find simple definitions of some of these words and phrases. For complete information, please contact your own trusted financial advisor, attorney or accountant.
Annuitant - One who receives annual fixed payments from an annuity.
Annuity - A fixed sum payable annually.
Appreciated Securities - Stocks and/or bonds that have increased in value since they were acquired.
Beneficiary - The person named to receive the income from, or remaining assets of, a trust.
Bequest - A gift through one's will.
Capital Gains Tax - The tax imposed upon profits realized from the sale of financial assets that have increased in value since they were acquired.
Codicil - An addition to a will that either modifies it or revokes part of it.
Gift Tax - A tax imposed on someone who gives money or property to another person without compensation.
Irrevocable Gift - A gift that cannot be annulled, undone or changed.
Mutual Fund - An investment company that invests the money of its shareholders in a diverse group of securities of other corporations.
Present Value - The value, in today's dollars, of assets to be received at some future time.
Principal - The initial sum invested or borrowed, or the remainder of that sum after payments have been made.
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."
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, books, cars, clothes, 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 Property - Property held in trust by one person (trustee) for the benefit of another (beneficiary).
Variable Income - Payments received on a regular basis that are subject to change, not fixed.