| Word or Phrase |
What it means |
| Beneficiary |
The person or charity who receives whatever you
designate from your Will or Living Trust.
|
| Beneficiary Designation |
The person(s) you name to receive the proceeds from
your Individual Retirement Account, life insurance,
Tax Sheltered Annuity or other kinds of retirement
benefits.
|
| Charitable Gift Annuity |
An annuity policy purchased from Betty Ford Center.
The donor(s) receive income for the term of the annuity.
At the end of the term, the remainder in the account
is donated to Betty Ford Center. Minimum gift is $5,000.
|
| Charitable Deduction |
Refers to the income tax deduction a donor may receive
by giving to charity. Deductions of large gifts may
be spread over five years. Tax benefits may depend
on the donor's entire tax situation, not just the gift.
|
| Charitable Lead Trust |
The donor creates a trust and irrevocably funds
it (see definition of "irrevocable" below).
The Betty Ford Center gets the income for the term
of the trust. At the end of the term, the donor's beneficiaries
receive the remaining principal. Minimum gift is $100,000.
|
| Charitable Remainder Trust |
The donor creates a trust and irrevocably funds
it. The donor or spouse receives income for the term
of the trust. AT the end of the term, the remaining
principal goes to the Betty Ford Center. Minimum donation
is $100,000. |
| Estate |
All of the property and assets owned by you at the
time of death. This property will be distributed according
to your wishes as outlined in your Will, Trust or other
document. If you do not have a document in place, your
estate will be distributed. |
| Income (from a Trust) |
The interest earned by the trust assets. May also
include rents or royalties from assets in the trust. |
| Irrevocable |
The terms of the trust or gift cannot be changed.
|
| Life Insurance |
An insurance policy that pays out a fixed amount
upon the death of the person insured. Life Insurance
can be used to fund a donation to the Betty Ford Center.
The donor can purchase a policy (preferably a one or
two payment whole life policy) and designates the Betty
Ford Center as a beneficiary. Donors may also give
paid-up policies as a donation or buy life insurance
naming heirs as beneficiary to offset decrease in the
estate's cash that was used to create a trust or that
would have been received by retirement funds.
|
| Living Trust |
Also known as a revocable trust. The donor
can change the terms of the trust at any time. Acts
in some ways as a Will by distributing the property
in the estate, but has particular benefits for people
who have property or children from a prior marriage,
or for people who want to name someone to handle their
affairs if they become ill. Distribute of the estate
can be completed without court supervision using this
kind of trust.
|
| Retirement Benefits |
Savings accounts or employer-sponsored programs
designed to provide income for you when you stop working,
usually sometime after age 59 ½. Many plans, including
IRAs or 401(k) plans provide income to you at a time
when you are assumed to be in a lower tax bracket.
The income is taxable. Since the accounts were created
with pretax dollars, individual beneficiaries must
pay income tax on any funds inherited from the accounts.
Some donors name the Betty Ford Center as a beneficiary
on large accounts to help heirs avoid income tax and
replace the sum involved with other kinds of assets.
|
| Revocable |
The terms of the trust or other document can be
changed at any time.
|
| Will |
Your final written document giving instructions
to your survivors about how to dispose of your estate.
The document can include your burial wishes and can
nominate someone to care for any children under age
18 still living with you or any dependent adults you
are responsible for.
|