Assets acquired by either or both spouses during a marriage, if couple lives in a community property state. Each spouse is considered to own half of property, regardless of who provided the means to purchase the property & regardless of how title is held.
Basis
Amount a person has invested in an asset, or the tax cost of an asset.
Tax-deferred
Term that describes earnings or income not subject to federal income taxes until a later date. Regarding earnings produced within an IRA, taxdeferred earnings are taxed only upon distribution to the account owner.
Capital gain / loss
Increase or decrease in value a seller realizes on the sale or exchange of a capital asset. A net short-term capital gain is treated as ordinary income. A net long-term capital gain is generally subject to a maximum 20 percent tax rate.
Professionally managed service
Care arrangement in which someone other than the senior makes the decisions about care and services.
Casket
Metal, wood or plastic container in which a deceased's remains are interred.
Hemiparesis
One sided weakness, though less dibilitating than paralysis.
Memorialization
Installation of a grave marker or memorial to honor the dead.
Family partnership
Business agreement limited to only family members. Used by senior family members to transfer intersts in the business to junior family members at a reduced gift tax cost by means of valuation discounts.
Health Insurance Portability and Accountability Act (HIPAA)
Federal health insurance legislatin passed in 1996 that allows under specified conditions long-term care insurance policies to be qualified for certain tax benefits.
