A
Adjusted Gross Income (AGI)
Income (including wages, interest, capital gains, income from retirement accounts, alimony paid to you) adjusted downward by specific deductions
Annuity income
Income received from an annuity (investment) other than from a retirement distribution
Assets
Things that are owned, such as a home
B
Bonds
A type of investment where the holder has a creditor stake in the company and receives the investment back with interest after it reaches maturity
C
Cash asset values
The current value of cash-type assets - sometimes called the net value of the asset. This is the total market value of the asset, minus any loans or debt attached to the asset
Cash value (or Cash surrender value)
The amount of cash accrual and interest that the insured would get upon cashing in a whole life policy or may be able to borrow money from
Certificate of Deposit
Sometimes abbreviated CD. Short or medium-term interest bearing deposits made at financial institutions, such as banks, where you have agreed to keep the money in the account for a specified amount of time for a specific rate of return.
Conservatorship
See Court-appointed guardian/conservatorship
Current fair market value
The most probable price (in terms of money) which a property should bring in a competitive and open market under current conditions
D
Dependent
A person, most often a child, who is economically dependent on another person
Dividends/Interest
Regular payments received from investment accounts, CDs, checking or savings accounts
Durable power of attorney
See Power of attorney
E
Earned Income (EI)
Salaries, wages, tips, professional fees and other amounts received as pay for physical or mental work actually performed
F
Federal Adjusted Gross Income (AGI)
Total taxable income. This includes money, goods, property, and services from all sources after any adjustments or deductions that are shown on a federal tax return
Fixed Income
Income that doesn’t change value from month to month, such as social security
G
Gross income
Total amount received from an income source before deductions for things such as payroll taxes, insurance premiums, retirement plan contributions, etc.
H
Healthcare power of attorney
See Power of Attorney
I
Investment annuity
A type of investment that guarantees payments of specific amounts at specific times. This does not include retirement annuities or annuities you cannot receive payments from until age 59½ or older
Investment asset values
See net value of the asset
Individual Retirement Account (IRA)
A individual retirement account where tax-deferred funds are set aside and withdrawals are able to be made after age 59 ½
Investment income
Dividends, capital gains net income, certain rental and royalty income, net passive activity income, and taxable and tax-exempt interest
L
Legal guardianship
A legal guardianship approved by the courts including grandchildren. A child of any age who is still residing in your household should be included
Liabilities
An obligation that legally binds an individual to repay a debt
Life insurance
Insurance paid to named beneficiaries when the insured person dies
Life insurance cash value
The current amount available to cash out or take a loan against on the insurance policy
Life insurance policy value
The total value of life insurance policies which will be paid to the beneficiaries when the insured person dies
Liquid assets
Accessible cash resources that include: individual/joint checking and savings accounts, retirement accounts, stocks, bonds, cash value in a life insurance policy, and more
Long-term care insurance
A policy that provides coverage for care in a nursing facility or care at home, or both depending on the details of the policy
Long Term Disability (LTD)
LTD is an income replacement program that protects individuals and family in the event becoming disabled and are unable to continue to work
Low income subsidy
Help paying for Medicare Part D costs for those who meet income and asset rules. Also known as "Extra Help"
M
Medicaid
A joint Federal and state program that provides assistance with medical costs to some low income individuals with limited resources. Medicaid programs vary from state to state
Mutual funds
A professionally managed type of collective investment that pools money from many investors and invests it in stocks, bonds and other securities
N
Net income
The amount received from income after deductions for things such as payroll taxes, retirement plan contributions, wage garnishments and the like. This is sometimes referred to as “take-home pay”
Nondurable power of attorney
See Power of attorney
O
Out-of–pocket cost
Costs an individual pays without assistance from Medicare or other insurance
P
Pension
A private or government fund paid into during employment where benefits are paid to the employee after retirement
Personal asset values
The current value of personal assets, such as a house or artwork, (net value of the asset) is the total market value of the asset, minus any loans or debt attached to the asset
Power of attorney
Document providing legal authority for an individual to make decisions about and exercise control of various assets and transactions of another
Durable power of attorney
- Effective immediately
- Remains in effect should grantor become disabled
- Allows you to act on his or her behalf
- Ability to make decisions without grantor’s advanced approval
Nondurable power of attorney
- Limits agent’s authority to specific situation or legal action
- Limited time period
- Ceases to be effective should grantor become disabled
- Commonly used for real estate transactions or allowing an agent to deposit or withdraw funds from grantor’s bank account
Springing power of attorney
- Only effective if and when a person becomes disabled
R
Representative payee
An individual who receives benefits on someone else's behalf
Retirement annuity
A type of investment that guarantees payments of specific amounts at specific times after you reach age 59½ or older
Retirement asset values
Retirement asset refers to financial investment accounts which are tax-deferred and set aside specifically for retirement or post employment
Reverse mortgage
A type of home loan that lets you convert a portion of the equity in your home into cash
Revocable living trust
Legal document with three parties involved—the grantors, or person making the trust, the beneficiary, which is the person benefiting from the trust fund and the trustee, who manages the trust fund and serves as the gatekeeper for the distribution of funds to the beneficiary(ies)
S
Social Security Disability Insurance (SSDI)
Social Security Disability Insurance (SSDI) is a payroll tax-funded, federal insurance program designed to provide income if you are unable to work due to a disability or until your condition improves, and provides income if your condition does not improve
Springing power of attorney
See Power of attorney
Supplemental Security Income (SSI)
An income benefit program administered by SSA for people with limited income and resources who are disabled, blind, or age 65 or older
T
Taxable income
Gross income amount subject to taxes
U
Untaxed income
Income that is not subject to state or federal taxes such as, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI)
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