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Special Needs Planning
Guide
|
Glossary
|
| 401(k)
Plan: |
A defined contribution plan established
under section 401(k). A plan in which employees may elect, as an alternative
to receiving taxable cash in the form of compensation or a bonus,
to contribute pretax dollars to a qualified tax-deferred retirement
plan. |
| 529
Plan: |
A college savings plan that provides professionally
managed, tax-advantaged investment portfolios designed to help meet
tuition and other higher education expenses at any eligible educational
institution in the country.
|
| 2176
Model Waiver |
See Katie
Beckett Waiver |
| B |
 |
| Balance
Sheet: |
A financial statement that shows
the assets, liabilities and owners' equity of an entity on a specific
date. |
| Bequest: |
The giving of assets, such as
stocks, bonds, real estate, and personal property, to beneficiaries
through the provisions of a will. |
| Borrowing: |
A way of acquiring necessary
capital. One form of borrowing is when an individual or a company
asks a bank to loan them a certain amount of money, over a certain
period of time, and agrees to pay a certain amount of interest. |
| C
|
|
| Capital
Appreciation: |
Capital appreciation is an investment
objective with emphasis placed on generation of current income and
prevention of capital loss. |
| Capital
Growth: |
The amount that a
security's market value increases over the original purchase price. |
| Capital
Loss: |
A decrease in the value of a
capital asset, calculated by the difference in price at which an investment
was purchased and the price at which it was sold. |
| Capital
Needs Analysis: |
The method frequently used by
insurance agents and planners to calculate the amount of insurance
needed to replace both the future income stream of an individual and
the present dollar value of specific future goals. |
| Cash
Equivalents: |
Short-term, highly liquid investments. |
| Cash
Reserves: |
The amount of money that should
be kept in investments that are easily converted into cash within
5 business days and is available to meet current cash needs and to
cover for any unforeseen short term emergency. Examples are money
market funds, treasury bills, saving accounts, etc. |
| Charitable
Gift Annuity: |
An arrangement whereby the donor
makes a gift to charity and receives a guaranteed lifetime (or joint
lifetime) income based on the age(s) of the annuitant(s). |
| Charitable
Remainder Trust: |
Irrevocable trust in which one
or more individuals are paid income until the grantor's death, at
which time the balance is passed on to a designated charity. |
| Charitable
Trusts: |
A form of trust in which the
donor (trustor or settlor) places substantial funds or assets into
an irrevocable trust (the basic terms cannot be changed or the gift
withdrawn) with an independent trustee. The assets go to a designated
charity upon the death of the donor, but the donor (or specific beneficiary)
receives regular profits from the trust during the donor's lifetime.
The IRS will allow a large deduction in the year the funds or assets
are donated to the trust, and the tax savings can be used to buy an
insurance policy on the life of the donor that will pay his or her
children the proceeds upon the donor's death. Thus, the donor (trustor)
can make the gift to charity, receive a return on the money, and still
arrange to make a large gift at death to his or her heirs. The disadvantage
is that the assets are permanently tied up or committed. (Source:
dictionary.law.com.) |
| Codicil: |
A legal document which supplements
and changes an existing will, generally restricted to minor changes
to the original will. |
| Common
Stock: |
One of two types of stock an
investor may purchase in a company. Most stock is common stock. Investors
who purchase it have voting rights at the company's annual stockholders'
meeting. Common stockholders are not guaranteed dividends, but they
may receive higher dividends during the company's prosperous periods.
If a company fails or liquidates, common stockholders are paid after
bondholders and preferred stockholders. Compounding: The ability of
an asset to generate interest that is then added to previous principal
plus interest. Conservator: A person appointed by the court and given
authority to handle the financial affairs of a person who is unable
to manage finances on their own. A conservator does not make any personal
decisions for the individual. |
| "Crummy"
Provisions: |
A trust provision that allows
the trust beneficiary to withdraw a limited amount of funds during
a limited time period each year. It is used in a life insurance trust
to qualify the amount that can be withdrawn as a "present interest"
for the annual exclusion amount. |
| Current
Liabilities: |
Money owed and payable by a company,
usually within one year. |
| Custodianship:
|
Generally means an ownership arrangement
in which property management rights are given to a custodian for the
benefit of a child beneficiary under the Uniform Gifts to Minors Act
or the Uniform Transfers to Minors Act; a custodian's duties resemble
those of a trustee, although the custodian does not take legal title
to the property. The custodianship ends when the minor reaches the
age of majority as specified by state law. |
| D |
|
| Debt
Obligations: |
Money an individual owes to a
lender. This can be in the form of credit card debt, auto loans and
mortgages. |
| Default
Risk: |
The risk that a company will
be unable to pay the principal or contractual interest on its debt
obligations. |
| Deferred
Annuity: |
An annuity in which the annuitant wishes to allow
earnings received into the separate account during the accumulation
phase to accrue tax deferred until some future time.
|
| Disability
Determination: |
Most Social Security claims are
processed through a network of Social Security Administration field
offices which review the application and send the paperwork to the
federally funded Disability Determination Center. The Determination
Center decides if an individual meets the definitions of being disabled. |
| Discretionary
Income: |
An individual's income that is
available to spend after paying for the essential expenses such as
food, clothing and shelter. |
| Diversification: |
The process of accumulating securities
in different types of investments, industries, risk categories, and
companies in an effort to reduce the potential risk of loss that may
be associated with one investment. |
| Dividend: |
A cash payment distributed to shareholders. Dividends
are financed by profits, and are announced by the companies board
of directors before they are paid.
|
| Durable
Power of Attorney (POA): |
A legal document which allows
one person (the principal) to authorize another person (the attorney-in-fact
or agent) to act on his or her behalf with respect to specified types
of property, and which may remain in effect during a subsequent disability
or incompetency of the principal. |
| Durable
Power of Attorney (POA) For Health Care: |
A legal document which grants
decision-making powers related to health care to an agent; generally
provides for removal of a physician, the right to have the incompetent
patient discharged against medical advice, the right to medical records,
and the right to have the patient moved or to engage other treatment. |
| E |
|
| Earned
Income: |
Receipt of payments that include
wages, commissions and bonuses for services rendered. |
| Equity:
|
The ownership interest of common
and preferred stockholders in a company. |
| Estate: |
All the assets a person possesses
at the time of death, including securities, real estate, interest
in business, physical possessions, death benefit of life insurance
policies and cash. |
| Estate
Tax: |
A tax imposed by a state or the federal government
on assets left to heirs.
|
| Executor/Ececutrix: |
The individuals or corporations
that are appointed in a will who will have the legal responsibility
for carrying out the provisions of the will, to the best of their
ability according to the current federal and state laws. The executor
may seek the assistance of an attorney to complete the process of
settling an estate. |
| F |
|
| Fiduciary: |
A person, company or association who is responsible
for investing the assets of the beneficiary in a prudent manner
(for example, a trustee).
|
| Fixed
Annuity: |
Insurance product that provides for lifetime retirement
income in designated (fixed) monthly installments.
|
| Fixed
Assets: |
A long term tangible asset or
the real property, plant and equipment of a business. |
| Fixed
Expenses: |
A cost that remains constant
which the consumer has limited control to change (mortgage, rent,
insurance, taxes). |
| Fixed-Income
Investment: |
A description of investments
in preferred stock, bonds, certificates of deposit and other debt-based
instruments that pay a fixed amount of interest. |
| Fixed-Income
Security: |
A security that pays an unchanging
rate of interest or dividends. Fixed-income securities include bonds,
certificate of deposit, money market instruments, and preferred stock.
|
| Fully
Funded Model: |
The description of a residential placement that is
completely funded by the Government.
|
| G |
|
| Grantor: |
The person who establishes a
trust. |
|
Gross Estate:
|
Generally includes the value of all property which
the decedent owned, had an interest in, or controlled at the time
of death. In addition to property that an individual may own in
his or her name, it includes property that avoids probate such as
joint tenancy property with rights of survivorship and life insurance
proceeds paid to a named beneficiary.
|
| Growth
and Income: |
An investment objective with emphasis
placed on generation of current income and secondary focus on moderate
capital. |
| Growth
of Principal: |
Appreciation on an initial investment. |
| Growth-Oriented
Investment: |
Property that was purchased with
the intent to appreciate. Any income generated by the property is
incidental. |
| Growth
Stocks: |
An ownership interest in a company which is growing
earnings and/or revenue faster than its industry or the overall
market. Such companies usually pay little or no dividends, preferring
to use the income instead to finance further expansion.
|
| Guardian
(Conservator): |
A person appointed by the Probate
Court to assume some decision-making responsibilities for an individual
who is unable to make decisions for him- or herself. The individual
for whom one is appointed is called a ward. A guardian is appointed
for a ward by the determination of the probate court. |
| H |
|
| Health
Care Proxy: |
A document that contains language
that helps an assigned person to make medical decisions if you are
unable to do so. (also called Power of Attorney)
|
| I |
|
| Inflation: |
Increases in the general price
level of goods and services. Inflation is commonly reported using
the Consumer Price Index (CPI) as a measure, and is one of the major
risks to investors over the long term. |
| Inflation
Rate: |
An important economic indicator,
this is the rate at which prices for goods and services are rising. |
| Inflation
Risk: |
Uncertainty over the future value
of an investment due to the possibility that the value of assets or
income will decrease as inflation shrinks the purchasing power of
a currency. |
| Interest: |
Payments borrowers
pay lenders for the use of their money. A corporation pays interest
on its bonds to its bondholders. |
| Interest
Rate: |
An important economic indicator,
this is the price, calculated as a percentage of the money loaned,
that a financial institution charges borrowers for the use of the
institution's money. |
| Intestacy: |
When one dies without a valid
will, he or she is said to have died intestate and his or her property
will be distributed under state succession statutes, generally of
the state in which he or she was domiciled at death. |
| Investment
Objective: |
The documented intent of a particular
asset. One example is growth; where the investor wants an investment
asset to appreciate. A second example is income, where the investor
wants to generate cash flow. |
| Irrevocable
Trust: |
A trust that cannot be changed
or terminated by the person who created it without the agreement of
the beneficiary. |
| J |
|
| Joint
Tenancy With Right of Survivorship: |
Asset ownership for two or more
persons in which each owner holds an equal share and may give away
or sell a portion or all that share without the permission of the
other owner(s). In the event of death, an owner's share is divided
equally among the surviving co-owners. |
| K |
|
| Katie
Beckett Waiver (TEFRA134(a)): |
A provision of the Tax Equity
and Fiscal Responsibility Act of 1982, also known as the Deeming
Waiver or the 2176 Model Waiver. Enables children with
certain disabilities to be cared for at home and be eligible for Medicaid
based on the individual's income and assets alone. The income and
resources of the parent are not considered for Medicaid eligibility.
|
| L |
|
| Letter
of Intent: |
Although not legally binding,
this form ( see the accompanying CD-ROM for a blank version which
is included with The
Special Needs Planning Guide) communicates your desires and
concerns to future caregivers. It covers vital statistics, your child's
financial picture, details about what works well or not so well for
your child, suggestions about what changes might be needed for the
future, a list of the locations of all pertinent documents and records
and individuals that are important in your child's life. |
| Liabilities |
(see Debt Obligations) |
| Life
Annuity: |
Type of settlement option chosen
by the annuitant that allows for the payment of retirement income
for the entire lifespan of the annuitant. This pay-out option, sometimes
referred to as straight life, typically allows for the shortest pay-out
period to the annuitant as they are paid over the lifetime of one
annuitant. If the annuitant dies, one month later payments cease.
Since this pay-out will be over the fewest number of years, the annuitant
will receive the largest possible check. Please note, since the annuitant
is receiving a larger payment, the annuitant is also getting a faster
return of the principal amount. This return of principal will allow
the annuitant to obtain the largest amount of tax exclusion because
the principal amount consists of after-tax dollars that were used
to fund the annuity. |
| Liquid
Assets: |
Those assets that can easily
be converted into cash within 5 business days without a penalty. |
| Liquid
Net Worth: |
Liquid net worth includes all assets that can be
liquidated within 30 days, exclusive of real estate holdings. This
includes, but is not limited to: checking and savings accounts,
IRA accounts, all marketable securities, commodity accounts, cash,
and money market funds and precious metals.
|
| Living
Wills: |
A document which allows people
to specify in advance of an illness or injury medical treatments to
be administered or withheld. |
| Local
Education Agency (LEA): |
Another term for a community's
School District. |
| Long
Term Care Insurance: |
Coverage that, under specified
conditions, provides skilled nursing care, home-health care, personal
or adult day care for individuals with a chronic or disabling condition
that needs constant supervision. LTC insurance offers more flexibility
and options than many public assistance programs. |
| M |
|
| Marketability: |
The ease or difficulty with which
securities can be sold in the market. |
| Maturity
Date: |
Date on which the principal amount
of a note, draft, acceptance bond, or other debt instrument becomes
due and payable. |
| Medicaid: |
Medicaid is a joint federal and
state program that helps with medical costs for people with low incomes
and limited resources. Medicaid programs vary from state to state,
but most health care costs are covered if an individual qualifies
for both Medicare and Medicaid. People with Medicaid may get coverage
for things like nursing home care and outpatient prescription drugs
that are not covered by Medicare. |
| Medicare: |
The federal health insurance
program for people 65 years of age or older and also for certain younger
people with diabilities. |
| N |
|
| Non-Liquid Assets: |
Investments that cannot be easily converted into
cash within 5 business days.
|
| O |
|
|
OBRA 1993 - (d)(4)(A) Special
Needs Ttrust
|
A section in the federal statute governing Medicaid
(42 USC 1396 p (d)(4)(A)) provides that a person can maintain eligibility
if he or she places excess funds in an eligible trust. These are
called "Payback " trusts. "Payback" trusts are created with the
assets of a disabled individual under age 65 and are established
by his or her parent, grandparent or legal guardian or by a court.
They also must provide that at the beneficiary's death any remaining
trust funds will first be used to reimburse the state for Medicaid
paid on the beneficiary's behalf. Source: www.elderlawanswers.com.
|
| P |
|
| Payback
Trust: |
A section in the Omnibus Budget
Reconciliation Act of 1993 governing Medicaid provides that a person
can maintain eligibility for government benefits if he or she places
excess funds in an eligible trust. This trust is created with the
assets of a disabled individual under age 65 and are established by
his or her parent, grandparent, or legal guardian, or by a court.
They also must provide that, at the beneficiary's death, any remaining
trust funds will first be used to reimburse the state for Medicaid
paid on the beneficiary's behalf. |
| Permanent
Life Insurance: |
Designed to provide lifelong
financial protection; as long as the necessary premiums are paid,
the death benefit will be paid. Most permanent policies have a feature
known as cash value that increases (tax deferred) over the life of
the policy and can be use to help fund financial goals (e.g., retirement,
education expenses). |
| Pooled
Trust (a type of Special Needs Trust): |
Medicaid and federal law also
permits trusts that pool the resources of many beneficiaries with
disabilities, and those resources are managed by a nonprofit association.
Unlike individual disability trusts, which may be created only for
those under age 65, pooled trusts may be for beneficiaries of any
age, and may be created by the beneficiary. In addition, at the beneficiary's
death, the state does not have to be repaid for its Medicaid expenses
on the beneficiary's behalf as long as the funds are retained in the
trust for the benefit of the other beneficiaries. |
| Power
of Attorney: |
The Power of Attorney names an
individual to act on another's behalf during his or her lifetime,
in the event that disability or incapacitation renders that person
unable to make decisions on his or her own behalf. Decisions may be
made concerning assets and property or health care. (also called a
Health Care Proxy). |
| Pressure
Points: |
The points in time that require
a parent or guardian to take specific action to protect eligibility
for government benefits, apply for benefits, work with various government
agencies or school systems on behalf of an individual with special
needs. This may involve a transition period over time or completing
an application on a specific day. In addition to the requirements
that pertain to an individual with disabilities, traditional planning
points are college, retirement, and death of a parent. The overall
goal is to identify these points in advance and implement various
strategies to plan for these moments in time. |
| Probate: |
The judicial determination of
the validity of a will and the distribution of estate assets under
a valid will. |
| R |
|
| Rates
of Return: |
The calculation that measures the gain on an investment
over a period of time.
|
| Required
Minimum Distribution: |
A distribution based on the life expectancy of an
IRA owner or qualified retirement plan participant designed to satisfy
certain minimum requirements imposed by the IRS upon attaining age
70 1/2. Failure to satisfy the distribution requirement may result
in a 50% excise tax on the amount not withdrawn.
|
|
|
In cases in which an individual
is not capable of managing his or her own Social Security benefits
and after careful investigation, a person appointed by Social Security,
who may be a relative, friend, or another concerned party to handle
that individual's Social Security matters, who is then required to
provide detailed records of the distribution of these funds. A person
having power of attorney over an individual does not automatically
qualify that person to be a representative payee. |
|
Retirement
Assets:
|
Money that cannot be accessed
by the owner prior to turning age 59 1/2 without paying a penalty.
|
| Revocable
Living Trust: |
A trust created during the grantor's lifetime that
the grantor may alter, amend, or revoke; the trust may become irrevocable
or terminate at the grantor's death.
|
| Revocable
Trust: |
An agreement whereby property is deeded to heirs.
This trust may be changed by the grantor or other person.
|
|
Risk/Return
Trade-Off:
|
A concept that risk is associated to return; the
possibility that an investment will not perform as anticipated.
In other words, the higher the return, the greater the risk, and
vice versa.
|
| Rollover
IRA: |
An individual retirement account (IRA) set up by
an individual to receive a distribution from a qualified retirement
plan. Distributions rolled over into a rollover IRA are not subject
to any contribution limits. Additionally, the distribution may be
eligible for subsequent rollover back into a qualified retirement
plan available through a new employer. To retain this eligibility,
the IRA must be composed solely of the original rollover contribution
and earnings (i.e., no other contributions or rollovers may be added
to or mingled with the IRA), and the new employer's plan must permit
the acceptance of rollover contributions. Also known as a conduit
IRA.
|
|
Roth
Conversion IRA:
|
A Roth Individual Retirement Account designated
as a conversion IRA. The only permissible contributions to a Roth
conversion IRA are amounts converted from a Traditional IRA during
the same tax year. It is no longer necessary to keep contributory
Roth money separate from converted Roth money.
|
| Roth
IRA: |
An Individual Retirement Account
(IRA) in which contributions are not tax-deductible, qualified distributions
from the account are not taxable, and earnings on the account are
taxable only when a withdrawal is not a qualified distribution. |
| S |
|
| Safety
of Principal: |
Preserving the value of an investment. |
| Section
8 Housing Assistance: |
The Section 8 Housing Choice Voucher Program is the
federal government's major program for assisting very low income
families, the elderly, and the disabled to rent decent, safe, and
sanitary housing in the private market. Since the housing assistance
is provided on behalf of the family or individual, participants
are able to find and rent privately owned housing, including single-family
homes, townhouses, and apartments. The participant is free to choose
any housing that meets the requirements of the program and is not
limited to units located in subsidized housing projects.
|
| Secured
Debt: |
Borrowed funds that are backed
by a specific asset. For example, a home mortgage is backed by the
value of the residence. If the borrower does not abide by the terms
of the agreement, the lender has a legal right to the residence. |
| Semi-Liquid
Assets: |
Money that is intended for long-term
savings that may be subject to early withdrawal fees or fluctuations
in price or value. |
| Single
Premium Deferred Annuity: |
Method of purchasing any annuity
in which the annuitant deposits one lump sum of money into the account.
The money will then remain in the account and accrue as tax deferred
until the annuitant elects to begin the pay-out phase. At pay-out
the annuitant will pay ordinary income tax on all earnings in the
account that are in excess of the cost basis. |
| Social
Security Disability Income (SSDI): |
A program financed with Social
Security taxes paid by workers, employers, and self-employed persons.
In order to be eligible for a Social Security benefit, the worker
must earn sufficient credits based on taxable work. Disability benefits
are payable to workers with disabilities, disabled widows or widowers,
or adults disabled since childhood who are otherwise eligible. Auxiliary
benefits may be payable to a worker's dependents as well. The monthly
disability benefit payment is based on the Social Security earnings
record of the insured worker on whose Social Security number the disability
claim is filed. |
| Special Needs Ttrust |
See OBRA 1993 |
| Stock: |
An instrument that signifies
an ownership position in a corporation. |
| Successor
Trustee: |
The person that is named as a
back-up to the original individual appointed trustee. |
| Supplemental
Security Income (SSI): |
The SSI program provides monthly
income to people who are age 65 or older, or are blind or disabled,
and have limited income and financial resources. Effective January
2006, the SSI payment for an eligible individual was $603 per month,
and, for an eligible couple, $904 per month. If only one person of
a married couple is eligible, a portion of the spouse's income may
be counted. In addition, the individual's financial resources (savings
and assets owned) cannot exceed $2,000 ($3,000 if married). Individuals
can be eligible for SSI even if they have never worked in employment
covered under Social Security. |
| Surety
Bond: |
Secures the performance on fiduciaries duties and
compliance with court order. Survivor Benefit Pension Plan (SBP):
The Survivor Benefit Plan (SBP) was established by Congress effective
September 21, 1972 (Public Law (PL) 92-425) to provide a monthly
income to survivors of retired military personnel upon the member's
death when retired pay stops. Survivors of members who die while
on active duty, and survivors of members recalled to active duty
from retirement that die while on active duty may also be protected
by the SBP.
|
| Survivorship
Life Insurance: |
This type of life insurance covers two individuals
and pays the death benefit at the death of the second insured. The
premiums are significantly less than two traditional insurance policies
because the policies insure two lives for one benefit. For older
individuals with some health considerations, this may be a viable
option for coverage. The policy can be designed using either whole-life
insurance, term insurance, universal life insurance, or a combination
of these. This product is frequently used in the disability market
because the major concerns usually develop at the death of the second
parent (or caregiver), a time when money is often needed the most.
|
| T |
|
| Temporary
Guardian or Conservator: |
When a guardian or conservator
is required on a temporary basis, or pending the general guardianship
appointment. A temporary guardianship may be granted until a problem
is settled or a permanent arrangement can be made. Such a court appointment
can either be responsible for the person, the estate, or both. |
| Tenants
in Common: |
A form of ownership held by at
least two persons. Each owner has a specific percentage interest in
the account and, upon death of one of the owners, those shares become
part of the deceased owner's estate. |
| Term
Life Insurance: |
This type of life insurance covers
the insured for a certain period of time, or term. The policy pays
death benefits only if the insured dies during the term, which can
be 1, 5, 10, or even 20 years. |
| Testamentary
Trust: |
A trust that is funded at death. |
| Time
Value of Money: |
The concept that money available
today is worth more than that same amount in the future. |
| Total
Return: |
A measure of investment performance
that starts with price changes, then adds in the results of reinvesting
all earnings, such as interest or dividends, generated by the investment
during the period being measured. |
| Transfer
on Death Account: |
An account registration used
to help avoid probate, transferring assets to a pre-assigned beneficiary
upon the death of the account owner. |
| Treasuries: |
Debt obligations of the U.S. Government.
They are secured by the full faith and credit of the U.S. Federal
Government. The interest on treasuries is exempt from state and local
taxes but is subject to federal income tax. There are three types
of treasuries: Treasury Bills (T-Bills), with maturities of one year
or less: Treasury Notes, with maturities ranging from one to 10 years;
and Treasury Bonds, long-term instruments with maturities of 10 years
or more. |
| Trust:
|
A legal arrangement under which
an individual (grantor) gives fiduciary control of property to a person
or institution (trustee) for the benefit of a beneficiary. |
| Trust
Administration: |
The act of implementing and following
the terms of the trust. |
| Trust
Advisor: |
An individual, often a family
member or friend, who will provide input on behalf of the beneficiary
to the trustee which can be a professional trustee. This role removes
the fiduciary responsibility of the individual but allows them to
be involved in the activity of the Trust. |
| Trustee: |
The person or persons who manage
the Trust. There is a fiduciary responsibility for seeing that trust
funds are properly invested and disbursed according to the wishes
of the Trustor and the laws of the state. The Grantor and the Trustee
may be the same person. Unearned income: Income derived from sources
other than wages, consisting of interest, dividends, rental income,
and capital gains. |
| U |
|
| Universal
Life Insurance: |
A type of permanent life insurance
that allows you, after your initial payment, to pay premiums at any
time, in virtually any amount, subject to certain minimums and maximums.
This policy also permits you to reduce or increase the death benefit
more easily than a traditional whole life policy. To increase your
death benefit, the insurance company usually requires you to furnish
satisfactory evidence of your continued good health. Unsecured debt:
A debt or money owed that is not backed by assets or collateral; such
as credit card debt. |
| Use
Assets: |
Property that is owned by an
individual that cannot be used to generate an income (e.g., a personal
residence). |
| V |
|
| Variable
Expenses: |
Expenses that will change over
time and items that an individual may have control over. They generally
consist of necessary expenses that may vary, such as utilities. |
| W |
|
| Ward: |
The legal term for a person under
guardianship or conservatorship. |
| Whole
Life Insurance: |
The most common type of permanent life insurance.
With this type of policy, premiums generally remain constant over
the life of the policy and must be paid periodically in the amount
specified in the policy.
|
| Will: |
A legal document which defines how a person wishes
his or her estate or property to be dispersed after his or her death.
The document must be signed by the testator or testatrix (the person
making the will) in the presence of two witnesses who must also
sign. An executor (female form executrix) or executors are appointed
by the testator to ensure that his or her wishes are carried out.
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Will Contest:
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The challenge of a will's validity
by heirs in probate court. |
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| Yield: |
The calculation used to determine the income as a
percentage of the investor's capital investment.
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