This glossary is arranged in alphabetical order. Click on a letter in left column or scroll down to search.
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Joint and Last Survivor:
- Can refer to either a life insurance policy or an annuity. In an insurance policy there are two or more life insured on the same policy, and the insurance is paid out at the last death. The cost of this type of coverage is much less than a first to die policy and it is generally used to protect estate value for children where there might be substantial capital gains taxes due upon the death of the last parent. This kind of policy is also valuable when one of two people covered has health problems, which would prevent the individual from obtaining coverage.
- Most pension plans must offer this form of pension plan payout that pays over the life of the retiree and his or her spouse after the retiree dies. The retiree and his or her spouse must specifically choose not to accept this payment form, and the spouse will generally have to sign a form acknowledging their choice.
Joint First To Die Coverage:
This means that there are two or more life insured on the same policy but the death benefit is paid out on the first death only. If two or more persons at the same address are purchasing life insurance at the same time, it is wise to compare the cost of this kind of coverage with individual policies having a multiple policy discount.
Joint Partner Trust:
A Joint Partner Trust is similar to the Alter Ego Trust. With a Joint Partner Trust you must be at least 65 years of age, both you and your spouse or common-law partner must be the beneficiaries of the trust who are entitled to receive all of the income and the only ones who can receive capital during your lifetime (the tax on the accrued gains on assets owned by a Joint Partner Trust is deferred until the death of the last surviving spouse or common-law partner).
A form of joint asset ownership by two or more persons in which each person has an equal undivided ownership interest that passes directly to the surviving joint tenant(s) upon the death of any joint tenant. Real estate held in joint tenancy does not pass through probate following the death of a person with an ownership interest. Personal property such as fixtures and equipment, inventories, or vehicles held in joint tenancy does not pass through probate if the right of survivorship is stated in the title to the property. Any joint tenant can petition the court and compel partition of a joint tenancy asset.
Jointly Held Property:
This is property owned by two or more persons under joint tenancy, tenancy in common. At the death of one of the owners their ownership go to the named beneficiary in their will.
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