Section of the Internal Revenue Code that designates
organizations as charitable and tax-exempt. Organizations qualifying
under this section include religious, educational, charitable, amateur
athletic, scientific, and literary groups; and organizations involved in
the prevention of cruelty to children or animals.
The Presbyterian Church in America is a 501© 3 organization.
Also known as the taxable estate, the gross estate less estate
Gross Income: Amount
of income remaining after the expenses of earning that income have been
An individual appointed by a court to settle the financial and
legal affairs of a person who dies without a will.
A female administrator.
Administration of a decedent's estate in a state other than the
state of residence, where the decedent owned real property.
with a value greater than the cost basis.
That clause in a will in which the witnesses certify that the
will has been signed before them and describes how all parties signed
A person or organization named in a will to receive or use estate
A transfer of personal property by will.
Distinguished from a devise which is a transfer of real property
Board of Trustees:
The policy-making body of a nonprofit institution.
In the case of the PCA Foundation, the Board is elected by the
Presbyterian Church in America’s General Assembly.
Gains: capital gain/loss: The
difference between the sale price of an asset—such as a mutual fund,
stock, or bond—and the original cost of the asset.
of Charitable Deductions: Contribution
deductions which exceed the IRS set percentage limitations may be
carried over into the next year – up to five succeeding years, if
necessary, and still be counted as a charitable deduction.
Annuity Trust (CLAT): A
trust in which a fixed dollar amount or a percentage of the initial
value of the trust assets is paid to charitable entities for a term of
years, after which the trust principal is transferred to designated
beneficiaries of the grantor. The
charitable interest “leads” the beneficiary’s interests in a CLAT.
Unitrust (CLUT): A trust in which a fixed annual percentage of the
value of the trust assets, revalued annually, is paid to charitable
entities for a term of years, after which the trust principal is
transferred to designated beneficiaries of the grantor.
Annuity Trust: A
trust made possible by the 1969 Tax Reform Act. It provides for a donor to transfer property to a trustee
subject to his right to receive a fixed percentage of the initial fair
market value of the property for as long as he or she lives.
Whatever remains in the trust at his death becomes the property
of the beneficiary institution.
A trust made possible by the 1969 Tax Reform Act. It is similar to the Charitable Remainder Annuity Trust,
except that the income is a percentage of the fair market value of the
property transferred, determined annually.
Two or more persons named in a will to settle an estate.
The only legal document that can change a will.
It is a supplement to a will, adding, taking from, or altering
the will's provisions. It
must be executed with the same formalities as a will.
When two or more persons (usually husband and wife) die as a
result of the same accident, when the death of each follows in a
relatively short period of time.
In some states property acquired by the efforts of either husband
or wife forms a common fund in which each has an equal interest.
One who is appointed by the court to protect the interests of an
A bank or trust company exercising fiduciary powers under
The principal in a trust.
The original cost of the property plus improvements and other
expenses paid by the owner during the period of ownership.
A joint trustee to whom specific duties are assigned.
Credit Estate Tax:
State death tax added to basic levies to bring state taxes up to
the total maximum credit available under federal tax law.
A fund that operates similarly to an endowment, but
from which all distributions are made according to the specified purpose
set forth in the original fund agreement.
The location of a person's home or principal residence although
he may also have living quarters in another location.
Advised Fund: Any
separately accounted for fund maintained by a sponsoring charity where
(a) the donor or a designee of the donor is given the opportunity to
advise the charity regarding investments, grant recipients, and the
amount and timing of grants; and (b) the sponsoring charity retains
exclusive legal control over all decisions regarding investments, grant
recipients, and the amount and timing of grants
Durable Power of
written instrument by which one person authorizes another to take
specific actions for him, as stated in the instrument; authority is
extended to periods of disability and incompetency.
A bequest, gift, or set of funds that are intended to
be kept permanently and invested to generate income for an organization
The property of an individual, both real and personal, in the
process of administration.
An arrangement for the management and disposition of a person's
property during lifetime and at death.
This can be accomplished by a will, trusts, gifts made during
life, or a combination of these.
A person or agency named in a will to administer the estate of a
deceased person. (Synonymous
with personal representative.)
Feminine form of executor.
A person who has the legal duty and power to take care of the
person and property of another who because of some disability (usually
age or incompetence) is considered incapable of administering his or her
One that is written entirely in the maker's own handwriting, not
attested by subscribing witnesses.
A person judicially declared to be incapable of managing his or
A tax levied on the right to receive property from a deceased
person. This tax should be
distinguished from the estate tax that is levied on the right to
transmit property, not the right to receive it.
Term used in law to describe agreements made while living.
Death without leaving a valid will.
Incapable of being retracted, revoked or taken back.
Where two or more persons own property, either real or personal,
according to a separate agreement.
The property does not pass to heirs and cannot be disposed of by
will. It passes only to a
survivor (or survivors) of the tenancy.
A trust created during the trust maker’s lifetime.
A living trust can be either revocable or irrevocable.
A provision under the federal tax law by which a qualified estate
of an unlimited amount may be transferred to a spouse, exempt from tax.
documents that have the same provisions but are executed separately by
husband and wife.
One that is given orally, in the presence of witnesses, usually
during one's last illness under circumstances that make it impossible to
prepare a written will.
of property among descendants as individuals and not by right of
the children of a decedent receive only that share of property which the
parent would have received if living.
A person or agency named in a will to administer the estate of a
deceased person. (Also
The action of proving before a competent judicial authority that
a document offered for official recognition and registration as the last
will and testament of a deceased person is genuine.
Anything that may be
the subject of ownership, real and personal, tangible and intangible.
It is that which belongs exclusively to a person, with full
rights to enjoy and dispose of it.
Real property is land,
or any estate in land. It
generally includes whatever is built or growing upon the land.
It may be defined to include anything that is immovable.
Personal property is
all property other than real property.
It generally refers to property that is movable.
The person or entity designated to receive from a
trust that which remains of the principal after the income interest or
other intervening interest has terminated.
Capable of being revoked, retracted or taken back.
A trustee who follows the original or prior trustee.
Term Life Insurance:
A life insurance policy purchased for a term of years.
If the person dies during this term, the beneficiary receives the
face amount of the policy. The
policy expires at the end of the stated number of years.
A legal relationship when one party (the trustee) holds legal
title to property for the benefit of another (the beneficiary).
A person holding a right or power and property for another person
A legal declaration
that makes provisions for the distribution of property at death.
One who personally sees or perceives a thing, and testifies to
what he has seen, heard, or otherwise observed or learned.