Accy 411 Rhodes (Ole Miss) SU 1, 2, 14 (final exam) terms
nuncupative will
a verbal will requiring two witnesses and limited to the distribution of PERSONAL property
engagement letter
a written contract establishing what services the accountant is to perform for the client
private securities litigation reform act of 1995
act designed to limit frivolous securities litigation claims
testate
an individual who dies with a valid will in existence
intestate
an individual who dies withOUT a valid will in existence
actual fraud
any act, expression, omission or concealment calculated to deceive another to his/her disadvantage
residuary
any portion of the testator's estate that is not specifically devised to someone in the will, or any part of such a specific devise that fails
descent & distribution
area of law that determines who is entitled to the property of an estate under the rules of
compilation
collection of literary works formed by collecting and assembling preexisting data or materials that are selected and arranged in a way that the resulting work constitutes an original work of authorship
working papers
confidential records of an accountant's performance of an engagement; must be maintained for 7 years; criminal if maintained fewer that 5 years after the engagement
attestation
confirmation that something is true, genuine, and/or authentic
audit
examination of financial records and other documents by a trained accountant
negligence
failure to make a reasonable attempt to comply with the provisions of the internal revenue laws or exercise ordinary and reasonable care in the preparation of a return
trust
fiduciary relationship with respect to property in which one person (trustee) holds legal title to the property for the benefit of another (beneficiary)
trustee
holds legal title to the trust property for the benefit of the beneficiaries
scienter
intent or knowledge of wrongdoing
real property
land or any property that is directly attached to it
will
legal declaration of an individual's (testator) intentions and desires regarding distribution of property upon the testator's death
beneficiary
person for whom's benefit the trust property is held by the trustee
settlor (trustor)
person who causes a trust to come into existence
descendant
person who is in direct line with an ancestor
spendthrift trust
prohibits any transfer of the beneficiary's rights by assignment or otherwise
bequest
property given by a will
trust property (trust res)
property interest that the trustee holds title to
collaterals
property subjected to a security interest in exchange for credit or as security for a debt
devisee
recipient of REAL property under a will
legatee
recipient of personal property under a will
securities exchange act of 1934
regulates the SECONDARY distribution (resale) of securities
securities act of 1933
regulates the initial offering of securities by requiring the filing of a registration statement with SEC prior to sale or an offer to sell
independence
state of perfect irresponsibility to any superior
privileged communications
statements and conversations made under confidential circumstances which cannot be compelled as evidence in court
trust corpus
sum of money or property set aside to produce income for a named beneficary
personal property
tangible items not permanently attached to the real estate
executor (administrator)
the individual empowered by the probate court to carry out the administration of an estate
per stirpes
the manner of distribution of property in which a class or group of distributees take the share that their deceased percent would have been entitled to
per capita
the manner of distribution of property in which the heirs to an intestate's estate share and share alike
abatement
the process of determining the distribution of the estate when the total available assets in the estate are insufficient to satisfy the provisions of the will is called abatement
probate
the process of proving the validity of a will
ademption
the process that occurs when a specific bequest or devise becomes impossible to perform due to circumstances or events occurring after the execution of the will
probate estate
those assets of a deceased person that require appointment of a fiduciary
ascendants
those from whom a person is descended
review
to reconsider judicially or administratively
fraud
transactions involving willful or deliberate action with the intent to obtain an unauthorized benefit
holographic will
will that is entirely written, dated, and signed in the testator's handwriting
sarbanes-oxley ace of 2002 (SOX)
a response to numerous accounting scandals; applies to issuers of publicly traded securities subject to federal securities laws
legacy
a gift of PERSONAL property under a will
devise
a gift of REAL property under a will
constructive fraud
a legal fiction describing an instance where a person or entity gained an unfair advantage or benefit from another by deceitful, unfair methods
