Weatherby & Associates, PC

Accumulation trust

A trust that may pay out its income currently or accumulate it for distribution in a future year.

Adjusted basis

In income tax law, the taxpayer's basis in an asset, reduced for depreciation or depletion deductions properly allowable with respect to the asset.

Alternative valuation date
A date other than the date of death as of which the executor of an estate may elect to value all of the estate's assets. The alternative valuation date is the date six months after the date of death, except for assets that have been sold, exchanged, or otherwise disposed of before that date, as to which the alternative valuation date is the date of sale, exchange, or disposition.

Annual exclusion (or Annual per donee gift tax exclusion)
A gift tax exclusion of $12,000 per donee for gifts made each year. The gift must be of a present interest. The exclusion is unlimited for direct payments of a donee's medical or tuition expenses.

Annuity interest
A right to a fixed annual payment for life or a term for years, usually as to a trust fund, such as a charitable remainder annuity trust fund. See also "Private annuity."

Anti-Byrum Rule
A statutory rule reversing the Supreme Court's decision in Byrum v. United States, under which a decedent's gross estate includes the value of closely held stock given away before death if the decedent retained the right to vote the stock.

Attorney-in-fact
The person authorized to represent the principal under a power of attorney.

Attorney, Power of
See "Power of Attorney."