Posts Tagged ‘college’

Second Mortgage definition explanation

What is Second Mortgage?
A type of subordinate mortgage made while an original mortgage is still in effect. In the event of default, the original mortgage would receive all proceeds from the liquidation of the property until it is all paid off. Since the second mortgage would receive repayments only when the first mortgage has been paid off, the interest rate charged for the second mortgage tends to be higher and the amount borrowed will be lower than for the first mortgage. Read more for examples and further explanation including related video clips and also comments
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Gift Tax definition explanation

What is Gift Tax?
A federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, but may pay an amount less than its full value. It is the giver of the gift who is required to pay the gift tax. The receiver of the gift may pay the gift tax, or a percentage of it, on the giver’s behalf in the event that the giver has exceeded his/her annual personal gift tax deduction limit. Read more for examples and further explanation including related video clips and also comments
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Charitable Lead Trust definition explanation

What is Charitable Lead Trust?
A trust designed to reduce beneficiaries’ taxable income by first donating a portion of the trust’s income to charities and then, after a specified period of time, transferring the remainder of the trust to the beneficiaries. Read more for examples and further explanation including related video clips and also comments
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Non-Resident definition explanation

What is Non-Resident?
An individual who mainly resides in one region or jurisdiction but has interests in another region. In the region where he or she does not mainly reside, he or she will be classified by government authorities as a non-resident. The classification itself will be determined in each region based on set circumstances such as the amount of time spent within the region during the calendar year. This classification is focused on where the person resides and does not focus on citizenship. Read more for examples and further explanation including related video clips and also comments
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Permanent Life Insurance definition explanation

What is Permanent Life Insurance?
An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with a savings portion. This savings portion can build a cash value – against which the policy owner can borrow funds, or in some instances, the owner can withdraw the cash value to help meet future goals, such as paying for a child’s college education. The two main types of permanent life insurance are whole and universal life insurance policies. Read more for examples and further explanation including related video clips and also comments
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Needs Approach definition explanation

What is Needs Approach?

A method of calculating how much life insurance is required by an individual/family to cover their needs (i.e. expenses). These include things like funeral expenses, legal fees, estate and gift taxes, business buyout costs, probate fees, medical deductibles, emergency funds, mortgage expenses, rent, debt and loans, college, child care, private schooling and maintenance costs. The needs approach contrasts the human-life approach. Read more for examples and further explanation including related video clips and also comments
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Life Insurance definition explanation

What is Life Insurance?
A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. Read more for examples and further explanation including related video clips and also comments
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Level-Premium Insurance definition explanation

What is Level-Premium Insurance?
A type of term life insurance for which the premiums remain the same throughout the duration of the contract. The premium paid on this type of policy will be higher at the beginning of its life but lower towards the end of its life as compared to term policies that have rising premium rates. Read more for examples and further explanation including related video clips and also comments
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Abeyance definition explanation

What is Abeyance?
A situation in which the rightful owner of a property, office or title has not yet been decided. Abeyance results when the current owner or holder does not declare a single current beneficiary. Instead, the new owner is determined through the outcome of a particular event at some time in the future. Thus, the ownership of the property, office, or title is left unfilled. Abeyance is derived from the Old French word “”abeance”", which means a longing or gaping, with future expectation. Read more for examples and further explanation including related video clips and also comments
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Permanent Capital Vehicle – PCV definition explanation

What is Permanent Capital Vehicle – PCV?
An investment entity for managing capital for an unlimited time horizon. A PCV is typically geared toward growing capital at the best long-term rate, and is therefore less focused on shorter-term performance. Read more for examples and further explanation including related video clips and also comments
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