Weatherby & Associates, PC

Capital gains
Gains recognized from the sale or exchange of capital assets (most property other than inventory and certain specifically excluded types of assets).

Capital gains, long-term
Capital gains recognized on the sale or exchange of a capital asset held for more than six months.

Capital gains, short-term
Capital gains recognized on the sale or exchange of a capital asset held for not more than six months.

Charitable lead trust
A charitable trust under which the charity receives an annuity interest (a fixed dollar amount, or a percentage—at least 5 percent—of the annual or initial value of the trust assets), for a term of years, after which a noncharitable person or group receives the remainder interest.

Charitable remainder annuity trust
A charitable remainder trust under which the noncharitable income interest is expressed as a fixed dollar amount or percentage (at least 5 percent) of the initial value of the trust assets, and which does not permit subsequent additions.

Charitable remainder trust
A trust under which an individual or group of individuals receive an income or annuity interest for life or a term of years, and a charity receives the remainder interest thereafter .

Charitable remainder unitrust
A charitable remainder trust under which the noncharitable income interest is expressed as a percentage (at least 5 percent) of the annual value of the trust assets.

Closely held corporation
A corporation the stock of which is owned by relatively few persons (often under thirty-five), rather than being subject to public trading.

Commissioner
The Commissioner of Internal Revenue.

Community property
A concurrent ownership of property between spouses under the law of some states under which each spouse owns an undivided one-half interest in all property acquired during the marriage (often with specific exceptions).

Complex trust
A trust that is not a simple trust, because it does not have to distribute all of its income currently, or because it makes a charitable distribution, or because it distributes principal.

Concurrent ownership
The ownership of property by more than one person at the same time. Takes the form of community property, tenancy by the entirety, tenancy in common, or joint tenancy.

Controlled corporation
A corporation the majority of the stock of which is owned by one or a very few persons.

Credit, unified
See "Unified credit."

Cross-owned life insurance
Policies of life insurance on the lives of a husband and wife, where each spouse owns the policy on the life of the other spouse.

Cross-purchase agreement
A buy-sell agreement under which the other partners or stockholders agree to buy the interest of a deceased or transferring partner or stockholder. Distinguished from a redemption agreement.

Crummey demand power (or trust)
A power granted an individual under a trust instrument, whereby the individual can, for a limited period following any gift to the trust (usually thirty through ninety days), withdraw all or some stated portion of the gift. The power is used to make gifts to the trust present interests qualifying for the annual gift tax exclusion.