Below are some simple definitions to help you understand Planned Giving options.

Annuitant
One who receives annual fixed payments from an annuity.

Annuity
A fixed sum payable annually.

Appreciated Securities
Stocks and/or bonds that have increased in value since they were acquired.

Beneficiary
The person named to receive the income from, or remaining assets of, a trust.

Bequest
A gift through one’s will.

Capital Gains Tax
The tax imposed upon profits realized from the sale of financial assets that have increased in value since they were acquired.

Codicil
An addition to a will that either modifies it or revokes part of it.

Gift Tax
A tax imposed on someone who gives money or property to another person without compensation.

Irrevocable Gift
A gift that cannot be annulled, undone, or changed.

Mutual fund
An investment company that invests the money of its shareholders in a diverse group of securities of other corporations.

Present value
The value, in today’s dollars, of assets to be received at some future time.

Principal
The initial sum invested or borrowed, or the remainder of that sum after payments have been made.

Real property
Immovable property; land, together with all the property on it that cannot be moved, together with any attached rights; often referred to as “real estate”.

Retained life estate
The right to use property for life (usually a residence or a farm) after contributing the remainder interest to a charitable institution.

Retirement accounts
Qualified plans like IRAs and 401(k) accounts that permit individuals to accumulate savings tax-free for retirement.

Tangible personal property
Includes movable objects (e.g. china, books, cars, clothes, art, etc.) but does not include land, buildings, or other forms of real estate (real property-see above), or stocks, bonds, copyrights, cash, or other “intangible” personal property.

Trust property
Property held in trust by one person (trustee) for the benefit of another (beneficiary).

Variable income
Payments received on a regular basis that are subject to change, not fixed.