Weatherby & Associates, PC

Qualified conservation contribution
A gift, deductible for income tax purposes, of a remainder interest or perpetual restriction for any of the following charitable purposes:

1. preserving land areas for outdoor recreation by the general public;
2. preserving land areas for education of the general public;
3. protecting in a relatively natural habitat fish, wildlife, plants, or similar ecosystems;
4. preserving open space for scenic enjoyment; or
5. preserving an historical important land area or certified historic structure.

Qualified interest
An annuity interest the retention of which by a donor will be reated as a valuable interest for purposes of measuring the value of the interest transferred in the same assets, under the special valuation rules.

Qualified payment
A right to a fixed and cumulative distribution with respect to preferred stock or a partnership interest, the value of which is taken into account in dterminging the value of a transferred interest in the same enterprise, under the special valuation rules.

Qualifed subchapter S trust (QSST)
A trust that, because it meets certain requirements, may be a shareholder of an S corporation. the trust must do the following:

1. own stock of one or more S corporations
2. distribute all of its income currently to one U.S. resident or citizen, and
3. be required to make any principal distibutions it makes during the income beneficiary's life to the income beneficiary.

The income beneficiary's interest must terminate at death or when the trust terminates, the trust assets must be distributed to the income beneficiary if the trust terminates while the beneficiary is alive, and the beneficiary, or his or her legal representative, must elect to be treated as the trust's owner.

Recapitalization
A change in the stock, partnership, or debt interests of a corporation or partnership, sometimes accomplished to freeze the value of one party's interest artificially.

Recourse debt
A debt on which the debtor is personally liable, so that if the creditor forecloses on the specified security (if any), and the proceeds of its sale are inadequate to satisfy the debt, the creditor may take and sell the debtor's other assets.

Redemption agreement
A buy-sell agreement under which the corporation or partnership agrees to buy out the interest of a shareholder or partner. Distinguished from a cross-purchase agreement or a hybrid agreement.

Remainder interest
The right given a beneficiary of a trust (or the beneficiary of certain nontrust arrangements, such as life estates or terms for years) to receive the trust fund upon some event, such as the death of another beneficiary.

Reversionary interest (or reversion)
A right retained by a trust's grantor (or by the creator of certain nontrust arrangements, such as life estates or terms for years) to receive the trust fund upon some event, such as the death of the beneficiary.

Right of survivorship
A right as to propoerty owned as joint tenants or as tenants by the entirety, whereby one joint owner succeeds to the interest of a deceased joint owner.