|Estate planning glossary
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40. Pay on death account -- A designation on a bank account, retirement account or government bond naming someone to receive the account value upon your demise.
41. Personal property -- Chattel, or any movable, personal property that is not permanently attached to real property such as land.
42. Pour-over will -- A will that transfers or pours probate (estate) assets over into a pre-existing trust.
43. Power of attorney -- A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and checks, for example. A durable power of attorney goes into effect right away and lasts until the person who grants the power of attorney dies or cancels it. A springing power of attorney goes into effect when the granter can no longer take care of himself and the springing power of attorney will state the circumstances which cause the document to go into effect.
Pretermitted -- A failure to include, or an
omission. In estate planning parlance, it refers to
a child or spouse intentionally or inadvertently not
mentioned in a will.
45. Probate -- A state court proceeding that verifies the validity of a will or appoints an administrator to settle a decedentís estate and distribute property to heirs if there is no will.
Qualified domestic trust (QDOT) -- A trust
arrangement where a noncitizen spouse can take advantage
of the unlimited marital deduction. The assets placed
in a QDOT are taxed when the surviving spouse dies
or receives a nonhardship distribution of trust assets
during his lifetime.
Qualified personal residence trust (QPRT) --
A trust in which the grantor basically passes ownership
of her home to heirs at some future date. If the grantor
dies before that time, the house is still included
in the estate. If she dies after the term
of the trust, then the house is not included in the
estate -- and will not be included in calculating
the estate tax payable. One condition that may be
included in the trust terms is that if the home passes
to the beneficiaries at the end of the trust term
and the grantor wishes to continue residing in the
residence, the child or children will lease the home
back to the creator of the trust.
Qualified Terminable Interest Property trust (QTIP)
-- A trust that allows the creator, or grantor, to
control what happens to the assets in the trust after
the surviving spouse dies. The surviving spouse must
receive all trust income and after he or she dies, the trust
corpus passes to the beneficiaries chosen by the first
spouse that had died. This trust is commonly used in cases
where there are children from a previous marriage.
Real property -- Permanent, nonmovable property,
such as land and buildings.