Term
| Reduction in value by mere lapse of time |
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Definition
| Diminishing value over time of wasting assets, such as annuities, mortgages, and notes receivable. |
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Term
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Definition
| Payment to the recipient of the entire amount due, which takes place within one taxable year. |
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Term
| Percentage-of-contribution (consideration-furnished) rule |
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Definition
| Inclusion of property in a deceased joint tenant's (other than husband and wife joint tenants) estate to the extent of the decedent's interest (fractional share) in the jointly held property. |
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Term
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Definition
| An amount attributed to an asset for income tax purposes for determining gain or loss on sale or transfer and for determining the value of a gift in the hands of a donee. |
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Term
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Definition
| A property right created (or reserved) by the donor of the power enabling the donee of the power to designate, within such limits as the donor has prescribed, who will be the transferees of the property. |
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Term
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Definition
| Relinquishment by donee of right to exervise powers under a power of appointment. |
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Term
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Definition
| The failure of a testamentary bequest due to the death of the devisee or legatee during the life of the testator. |
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Term
| General power of appointment |
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Definition
| A power over the disposition of property exercisable in favor of any person the donee of the power may select, including the donee, the donee's estate, the donee's creditors, or the creditors of the donee's estate. |
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Term
| Special (limited) power of appointment |
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Definition
| A power of appointment in which the donor of the power limits the donee's appointment of the property to an appointee other than the donee, the donee's estate, or the donee's creditors. |
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Term
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Definition
| A power that allows an individual to consume or invade property for his or her own benefit, but the power is limited by a standard having a value that is ascertainable, such as the power to use or invade property for the individual's health, education, support, and/or maintenance. |
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Term
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Definition
| An individual's noncumulative right to withdraw annually the greater of $5,000 or 5 percent of the aggregate value of property from a trust. |
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Term
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Definition
| Elements of ownership or degree of control over a life insurance policy. |
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Term
| Proceeds payable to or for the benefit of an estate |
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Definition
| Phrase that is operative when life insurance is receivable by an estate, executor, or any other person who has the power to act on behalf of an estate. |
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