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