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Glossary of Planned Giving Terms
Actuarial
As used in planned giving, refers to the factors used to calculate the value of lifetime payments to individuals or organizations.
Administrator
The person appointed by the court to manage one's estate when he or she dies without leaving a will. Administrators have the same duties as executors.
Adjusted Gross Income
Income from all taxable sources, minus certain adjustments but before deductions and exemptions. The total at the bottom of the first page of the Form 1040. Individuals may deduct charitable cash contributions up to 50% of AGI; they may deduct gifts of appreciated securities and appreciated property up to 30% of AGI.
Annuity
A contractual arrangement to pay a fixed sum of money to an individual at regular intervals.
Appreciated Assets
Securities, artwork, real estate, or any other property that has risen in value since the donor acquired it. Generally, appreciated property may be donated to at full fair market value with no capital gains cost.
Appraisal
An assessment of the value of a piece of property. Donors contributing real or tangible personal property (art, books, collectibles, real estate, etc.) to Tabernacle must secure an independent appraisal of the property to substantiate the value they claim as a charitable deduction.
Basis
The tax purpose value of the property or asset used in establishing the potential capital gain amount. Example: Mrs. Smith bought stock for $100 per share and sold it for $175. Her cost basis in the stock is $100 per share.
Beneficiary
An individual or institution designated as the recipient of a bequest (funds and/or assets) from a will or distributions from a trust.
Bequest
A gift of property or assets to a beneficiary as defined in a will.
Capital Gains Tax
A federal tax on the appreciation in an asset between its purchase and sale prices.
Charitable Gift Annuity
Typically an agreement in which you transfer cash or other assets to a charitable organization in exchange for its promise to pay you an annuity for life or for a term of years.
Charitable Trust
A trust having a charitable organization as a beneficiary.
Charitable Remainder Unitrust
A trust set up to pay a return or fixed annual percentage of the net fair market value of the assets placed in the trust. The value of the trust assets is recalculated annually. The principle remaining at the end of the trust period is given to the designated charity.
Endowment Fund
The permanently held capital of a non-profit used to support ongoing projects and meet institutional opportunities.
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Estate Tax
A federal tax on the value of the property held by an individual at his death (it's paid by the estate, not the recipients of the bequests). In contrast, state inheritance tax is applied to the value of bequests passing to beneficiaries; it is also paid by the estate before the distributions are made.
Executor
The person named in a will to administer the estate.
Fair Market Value
The price that an object of property would bring on the open market.
Fiduciary
A person or institution legally responsible for the management, investment and distributions of funds. Examples include trustees, executors, and administrators.
Gift Tax
Tax on gifts generally paid by the person making the gift, rather than the recipient.
Intestate
The term applied when an individual dies without a will.
Probate
The legal process of proving a will, appointing an executor, and settling an estate; but by custom, it has come to be understood as the legal process whereby a deceased person's estate is administered and distributed.
Personal Property
Securities, artwork, business interests, and other items of property (as opposed to real property) used in planned giving.
Remainder
In a trust, the portion of the principal left after the income interest has been paid to the beneficiary.
Remainderman
A legal term for the individual or organization who receives the trust principal after the income interest has been satisfied.
Testator
The individual who dies leaving a will or testament in force.
Trust
Any arrangement where property is to be held and administered by a trustee for the benefit of those for whom the trust was created. Depending on the type and how it is established, a trust may be revocable (changeable) or irrevocable (not changeable).
Trustee
An individual or organization carrying out the wishes of the person who established the trust, paying income to the beneficiaries and preserving the principal for distribution.
Will
A legally executed document that directs how and to whom a person's property is to be distributed after death.
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If you would like more information about planned giving at Tabernacle, contact Dr. Bruce Minett - Executive Associate Pastor. He will be happy to speak with you.
Disclosure:
The information in the planned giving section of Tabernacle's web site is not designed to act as legal or financial advice. While Tabernacle Baptist Church is glad to provide general information, this information should be reviewed by professional, financial advisors prior to any action.
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