|Generally, all assets you
acquire prior to marriage and assets acquired by
gift or inheritance during marriage.
|A trust established by one
person. A married couple has separate trusts if
each spouse has his/her own trust with its own
assets. In contrast, see “Common Trust.”
|The process of handling the
final affairs (valuation of assets, payment of
debts and taxes, distribution of assets to
Beneficiaries) after someone dies.
|A separate listing of special
assets that will go to specific individuals or
organizations after your incapacity or death. Also
called special bequests.
|Allows you to provide for a
disabled loved one without interfering with
|Protects assets in a trust
from a beneficiary’s creditors.
|Spouse||Husband or wife, or married same-sex couples.|
|Assets are given a new basis
when transferred by inheritance (through a will or
trust) and are re-valued as of the date of the
owner’s death. If an asset has appreciated
above its basis (what the owner paid for it), the
new basis is called a stepped-up basis. A
stepped-up basis can save a considerable amount in
capital gains tax when an asset is later sold by
the new owner. Also see “Basis.”
|Subchapter S Corporation
|Stock in a corporation which
has chosen to be subject to the rules of subchapter
S of the Internal Revenue Code.
|The spouse who is living
after one spouse has died.
|See “A Trust.”|
|Person or institution named
in the trust document who will take over should the
first trustee die, resign, or otherwise become
unable to act.