Tax Basis In finance, the original cost of and additions to an asset, less accumulated depreciation, that goes into the calculation of a gain or loss for tax purposes. For investments, the price at which an investment asset was purchased, plus any additions, reinvested dividends, and capital gains that have been realized.

Taxable Estate The value of the property in a decedent's estate after allowable exclusions, exemptions, and deductions.

Taxable Gain The positive difference between the amount realized on the disposition of an asset and the adjusted basis in the asset. The resulting figure is a gain, which depending on the taxpayer's circumstances, may be treated as ordinary income and/or capital gains.

Taxable Gifts Transfers of property made during the year which exceed the annual gift tax exclusion.

Temporary Disability A disability that is expected to last no more than one year.

Term Insurance Rider An endorsement or attachment to a life insurance policy that provides additional term coverage for only a specified, limited period. If the insured dies during this time, the designated beneficiary(ies) can receive death benefit proceeds..

Term Life Insurance A form of life insurance which provides coverage for a specified period of time and does not build cash value.

Testamentary The passing of property by will.

Testate A person who dies with a will is said to die testate, while a person who dies without a will is said to die intestate.

Testator One who makes or has made a will; one who dies leaving a will.

Transfer for Value Rule The transfer of some or all of the ownership rights in a life insurance policy to another party in exchange for cash or other forms of valuable consideration. In general, if you effect a transfer for value with a life insurance policy, the death benefit proceeds payable under the policy may lose their income tax-exempt status.

Trustee The holder of legal title to property for the management, use, or benefit of another.

Trustor The person who executes a deed to convey title to property or who creates a trust. Also called a creator, settlor, donor, or grantor.