Estate Planning terms U

Undivided Interest: The right owned by every joint tenant or tenant in common to the property. Each tenant has an equal right to enjoy the entire property and receive a proportionate share of the income it generates.

Unified Tax Credit: A tax credit that reduces federal estate or gift taxes, varies from year to year.

Uniform Gifts (Transfers) To Minors Act (UGMA or UTMA): A method of holding property for the benefit of a minor. Similar to a trust except that it is governed by state law.

Universal Life Insurance: Life insurance policy that combines the low-cost of term insurance with a tax deferred savings component which may be loaned to the policy holder.
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