A Brief Glossary of Estate Conservation and Business Succession Terms and Techniques:
Administrator: The person appointed by the court to manage another person's estate when he or she dies without leaving a will. The administrator is usually required to post a bond as security.
Community Property: System used to determine the interest of a husband and wife in property acquired during marriage. Used in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
Estate Tax: A tax imposed on most types of property at death of the owner.
Gross Estate: The total property or assets held by an individual as defined for federal estate tax purposes.
Intestacy, Intestate: The term applied when an individual dies without a will.
Marital Deduction: A deduction allowing for the unlimited transfer of any or all property from one spouse to the other, generally free of estate and gift tax.
Minor Child: A person who has not yet reached the legal age of majority. This age can differ with each state, but generally is from 16 to 21 years.
Probate: The review or testing of a will before a court of law to ensure that it is authentic.
Trust: A written legal instrument authorizing one party to administer property for the benefit of another.
Unified Credit Amount: An estate tax credit used to reduce the tax on transfer of property either during life (gift tax) or at death (estate tax). The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the credit amount to $345,800 beginning in 2002. It is scheduled to increase to $555,800 in 2004, $780,800 in 2006 and $1,455,800 in 2009. The estate tax is scheduled to be repealed in 2010. However, due to the Sunset Provision of the Act, the credit will return to $345,800 in 2011, unless congress amends the current Act.
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