Appendix A

Types of Assets

401(k) Plan

A retirement savings plan in which people contribute a portion of their earnings to a 401(k) account. Sometimes the person’s employer may match these contributions.

403(b) Plan

A tax-deferred retirement plan available to employees of educational institutions and certain nonprofit organizations. This plan is also referred to as a tax-sheltered annuity.

457 Plan

A deferred-compensation program made available to employees of state and federal governments and agencies. A 457 plan is similar to a 401(k) plan.

Academic Achievement Incentive Scholarships

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Academic Competitiveness Grants

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Achieving a Better Life Experience (ABLE) Account

Tax-free savings account that allows people with disabilities to save and invest money without affecting their program eligibility.

Adoption assistance

An adoption assistance grant provided to adoptive parents. It is funded either federally through Title IV-E of the Social Security Act or by the state under Minnesota Statutes, section 259.67.

Agent Orange Settlement Fund payments

Payments made in connection with the case of In re Agent Orange Product Liability Litigation. Qualifying survivors of deceased veterans received a single lump sum payment. The settlement fund is now closed as all funds have been distributed.

Agricultural homestead

The property located on agricultural land that meets the definition of home and includes the dwelling, the garage, if any, and one acre of land immediately surrounding the dwelling. This applies to the home equity limit.

Alaska Native Claims Settlement Act (ANCSA) payments

Distributions received by Alaska natives and their descendants from Alaska Native Regional and Village Corporations (ANRVCs).

Annuities

A purchased contract in which one party (annuity issuer) agrees to pay the purchaser, or the person(s) the purchaser designates (the payee or payees), a return on money deposited with the annuity issuer (either in the form of a single lump sum or several payments deposited over several months or years) according to the terms of the annuity contract.

Asset conversion

A change from one type of asset to another.

Austrian Reparation payments (also called Austrian Social Insurance payments)

The nationwide class action lawsuit, Bondy v. Sullivan, involved Austrian social insurance payments which were passed, in whole or in part, on wage credits granted under Paragraph 500–506 of the Austrian General Social Insurance Act. (GSIA). These paragraphs grant credits to individuals who suffered a loss (i.e., were imprisoned, unemployed, or forced to flee Austria) during the period from March 1933 to May 1945 for political, religious, or ethnic reasons.

Blood product settlement payments

Payments made pursuant to the class settlement of Susan Walker v. Bayer Corp., et al, and to the release of any claims in that case that were entered into in lieu of class settlement.

Bureau of Indian Affairs (BIA) student financial aid

BIA funded student financial aid to eligible individuals.

Burial Assets

Funds paid or designated in advance for funeral expenses. Burial funds provide for preparation of the body, cremation, or burial services. The money is usually held in trust by a bank or other financial institution unless the agreement is funded by an insurance policy or annuity.

Cash Surrender Value (CSV)

The monetary or equity value that a life insurance policy or annuity acquires over time as the policy owner pays the premiums and dividend additions and interest are added to the policy. The CSV is the amount the life insurance policy or annuity owner would receive if the policy were cashed in. A loan against a life insurance policy reduces its CSV.

Certificate of Deposit (CDs)

A promissory note issued by a bank entitling the bearer to receive interest. A CD is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw money, this action will often incur a penalty.

Client Funded Trusts

Trusts funded with the income or assets of the client and/or the client’s spouse. The client and/or the client’s spouse (grantor(s)) fund the trust by transferring liquid or non-liquid property to the trustee(s) of a trust for the benefit of the grantee(s) or others. 

Clinical trial participation payments

Compensation for participation in a clinical trial that involves the research and testing of medical treatments for a rare disease or condition.

Clothing and Personal Needs Allowance Accumulation

Clothing and personal needs allowance of people in long-term care facilities retained between annual renewals.

Cobell v. Salazar Class Action Settlement (also known as Claims Resolution Act of 2010)

Fund reimbursing a large number of Individual Indian Money (IIM) account holders due to inadequate historical accounting of funds held in trust by the federal government.

College Assistance Migrant Program (CAMP)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Commercial annuity

An annuity that is purchased and set up via an insurance company or financial institution licensed or regulated by the Minnesota Department of Commerce or a similar agency of another state.

Continuing Care Retirement Community (CCRC) Entrance Fee

The entrance fee charged to a person who enters into a written contract with the CCRC. The CCRC offers a range of continuing care services while allowing the person to remain in a familiar setting. A CCRC may also be referred to as a life care community.

Contract for deed

A contract for deed is a conditional sales contract for the purchase of real property. It is similar to a mortgage.

Corporation for National and Community Service (CNCS) payments

Established by the National and Community Service Trust Act of 1993 (NCSTA) by combining two formerly independent agencies: the Commission on National Service and ACTION. CNCS funds payments to volunteers in programs authorized under the Domestic Volunteer Services Act, including:

  • AmeriCorps

  • Urban Crime Prevention Program

  • Special volunteer programs under Title I

  • Demonstration programs under Title II

  • Senior Corps

    • Retired Senior Volunteer Program (RSVP)

    • Foster Grandparent Program

    • Senior Companions

Coverdell Education Savings Account (ESA) (also referred to as a Section 530 Plan and formerly known as an Educational Individual Retirement Account)

An account established to pay the educational expenses (elementary, secondary, and postsecondary school) of an individual who is the designated beneficiary and is under age 18 or a person with special needs.

Crime victim payments

Payments made to compensate crime victims for losses resulting from the crime.

Deemed Individual Retirement Account (IRA)

An employer sponsored retirement plan that offers the features of an IRA. The plan maintains a separate account or annuity to receive voluntary employee contributions to facilitate employee retirement savings.

Deferred annuity

An annuity contract under which periodic payments will begin sometime in the future. A deferred annuity contract provides the purchaser with the opportunity to accumulate savings over an extended period before the contract enters its payout phase.

Disability insurance

A policy that pays a fixed amount of income to a person who becomes disabled under the terms of the policy. Disability insurance is intended as an income replacement and is not health insurance.

Disaster Assistance, federal declaration

Payments issued pursuant to a presidential declaration of disaster or emergency. These payments may be made by the federal government (including, but not limited to, grants from the Federal Emergency Management Agency (FEMA), states, local governments, and disaster relief organizations such as the Red Cross and Salvation Army).

Disaster Assistance, state declaration

Payments issued pursuant to a state declaration of disaster or emergency. These payments may be made by the state government (including, local governments, and disaster relief organizations such as the Red Cross and Salvation Army).

Employee Stock Ownership Plans (ESOPs)

A form of defined contribution plan in which the investments are primarily in employer stock.

Employer-sponsored Individual Retirement Account (IRA)

An IRA which an employer establishes for an employee. Examples of Employer Based IRAs include:

  • Simplified Employee Pension (SEP) IRAs are available to employees and self-employed individuals

  • Savings Incentive Match Plans for Employees (SIMPLE) IRAs are available to employees and self-employed individuals

  • Deemed IRAs

  • Payroll Deduction IRAs

Escrow

A deed, bond, money, or piece of property held in trust by a third party to be turned over to the grantee only on fulfillment of a condition.

Face Value (FV)

The amount that is contracted for at the time the life insurance policy is purchased – it is the amount to be paid out when the insured dies.

Federal Family Education Loan (FFEL)

A student financial aid created by Title IV of the Higher Education Act of 1965. FFEL includes four components:

  • Stafford loans (formerly Guaranteed student loans)

  • Unsubsidized Stafford loans

  • Federal PLUS loans

  • Federal Consolidation loans

Federal Supplemental Educational Opportunity Grant (FSEOG) Program

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Federal Work-Study (FWS) program

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Filipino Veterans Equity Compensation (FVEC) fund payments

Section 1002 of the American Recovery and Reinvestment Act of 2009 (ARRA) established the FVECF to issue one-time payments to eligible Filipino veterans who aided American troops during World War II.

Fixed annuity

A type of annuity in which benefits have guaranteed or fixed dollar amounts.

Flexible spending accounts/arrangement (FSA)

Employer-established benefit plan that allows employees to be reimbursed for out-of-pocket medical, dependent-care, or transportation expenses. These may be offered in conjunction with other employer-provided benefits. FSAs are usually funded through voluntary salary reduction agreements with an employer. Both employees and employers may contribute to the FSA. Self-employed individuals are not eligible for FSAs.

Foster care payments

A payment made to the foster care provider for the purpose of meeting the needs of the individual in care. Payments include:

  • Federally funded foster care IV-E payments

  • State funded, non-IV-E, foster care payments

  • Adult foster care payments

  • Other payments for the care of foster children or adults who live in the household

Gear Up (Gaining Early Awareness and Readiness for Undergraduate Programs)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Gifts to children with life threatening conditions

Payments made by tax-exempt organizations to or for the benefit of children under age 18 with life-threatening conditions. These gifts include gifts to the child's parents for the child's benefit and indirect benefits to other family members, such as payment to accompany the child on a trip. Such gifts can also include in-kind gifts, which is any food, shelter, or other item donated to the child or another individual on the child’s behalf.

Guardianship account

An account established at a financial institution held by a guardian who acts on behalf of and administers the funds for the benefit of a minor under age 18 or a person who is incapacitated or otherwise unable to handle financial transactions.

Health Reimbursement Arrangement/Account (HRA)

An employer-established benefit plan where employees are reimbursed tax free for qualified medical expenses. These may be offered in conjunction with other employer-provided health benefits. Employees may not contribute and the contribution cannot be paid through a voluntary salary reduction agreement. Only employers may contribute to the HRA. Self-employed individuals are not eligible for HRAs.

Health Savings Account (HSA)

A tax-exempt trust or custodial account (an account managed for eligible employees by a custodian) that an individual sets up with a qualified HSA trustee to pay or reimburse certain medical expenses. To qualify for an HSA an individual must have a high deductible health plan. An HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of Individual Retirement Arrangements (IRAs) or Archer MSAs. An employer may also contribute to an employee’s HSA.

High School Equivalency Program (HEP)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Higher Education Act of 1965 (HEA)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Home equity

The market value of the home subtracted by any encumbrances on the home.

Homestead property

A homestead is any property in which a person or a person’s spouse has an ownership interest and which serves as the person’s principal place of residence. It includes the surrounding land and buildings on that land, provided the land is not separated by any property owned by others. It may be fixed or mobile and located on land or water.

Household goods and personal effects

Items of personal property found in or near a home that are used on a regular basis; items needed by the household for maintenance, use and occupancy of the premises as a home. Also includes personal property ordinarily worn or carried by the person, and articles having sentimental value to the person.

I-35W Bridge Collapse payment

Payments made to survivors of the I-35W Bridge Collapse under the I-35W Emergency Hardship Relief Fund and The Catastrophic Survivor Compensation Fund.

Immediate annuity

An annuity contract under which the periodic payments will begin following the payment of the annuity premium, rather than being deferred.

Individual Development Accounts (IDA)

A special bank account established under the Family Assets for Independence in Minnesota (FAIM) program that helps a person save for education, purchase of a first home, or to start a business. Eligible people must have earned income and have low income and assets.

Individual Retirement Arrangement (IRA)

An umbrella term used to describe a personal savings plan that provides the owner tax advantages for setting aside money for retirement. IRAs can be in the form of a trust, an account, or an annuity.

Interest

Money earned from a bank account, loan, or other investment. Earned interest may be credited to the account or paid directly to the owner.

Interest income from Indian trust land or restricted lands

Income from interests in restricted land allotted to an individual who is of Indian descent from a federally recognized Indian tribe.

Irrevocable trust

A trust that cannot be modified or terminated after its creation by the grantor or the grantor’s representative.

James Zadroga 9/11 Health and Compensation Act of 2010.

Payments made to a worker or volunteer, or if deceased, his or her heir, under the World Trade Center (WTC) Litigation Settlement or distributed by the WTC Captive Insurance Company. These payments are considered disaster assistance.

Japanese-American and Aleutian restitution payments

Reparation payments to certain United States citizens of Japanese ancestry and resident Japanese noncitizens and certain eligible Aleuts who were interned or relocated during World War II.

Jensen Settlement Agreement payment

A fund resulting from settlement the lawsuit Jensen et al v. Minnesota Department of Human Services, et al. in which residents of the former Minnesota Extended Treatment Options (METO) program alleged they were unlawfully and unconstitutionally secluded and restrained.

Keogh plan

A tax deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or defined-contribution plan, although most plans are defined-contribution plans.

Legal instrument or device similar to a trust

Any instrument that exhibits the general characteristics of a trust, but is not called a trust. This can include, but is not limited to, escrow accounts, investment accounts, pension funds and other similar devices managed by an individual or entity with fiduciary obligations.

Leveraging Educational Assistance Partnership (LEAP) student financial aid (formerly State Student Incentive Grants (SSIG))

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Life annuity payments

Annuity payments that continue for the life of the annuitant.

Life estate

A life estate is a form of legal ownership that is usually created through a deed, will, or by operation of law. It is an interest in real property held only for the duration of a specified person’s life, or some other condition specified in the life estate agreement. The person who is transferring ownership is referred to a life tenant or a life estate owner. The person who is receiving the property following the specified condition is referred to as a remainderman.

Life insurance

A type of policy that pays a beneficiary a designated sum upon the death of the insured person. There are two basic forms of life insurance policies: term and non-term.

Liquid assets

Cash or other types of assets that can be easily converted to cash, such as bank accounts, stocks, bonds, certificates of deposit, some retirement accounts and money market accounts.

Low Income Home Energy Assistance Program (LIHEAP) payments

Federal block grant for energy assistance payments to low income households. The LIHEAP in Minnesota is the Energy Assistance Program (EAP).

Lump sum income

One-time income that is not predictable. Periodic reoccurring income is not lump sum income. Examples of lump sum income include, but are not limited to:

  • Winnings (lottery, gambling)

  • Insurance settlements

  • Worker’s Compensation settlements

  • Inheritances

  • Retroactive Retirements, Survivors and Disability Insurance (RSDI); Supplemental Security Income (SSI); Veterans Administration (VA) and unemployment insurance benefits

Medicaid Qualifying Trust (MQT)

A trust or similar legal device established (other than by a will) by an individual (or spouse) under which the individual may be the beneficiary of all or part of the payments from the trust.

Medical Savings Account (MSA)

A tax-deferred savings account that can be offered by employers as part of a benefits package. Medical savings accounts are designed to help participants pay for medical and health care expenses by allowing them to save for those expenses in a tax-sheltered environment. This is an example of a Health Savings Account (HSA).

Minnesota Housing Finance Agency (MHFA) home improvement loan

Home improvement loans through the MHFA to help homeowners live in safe, accessible, and energy efficient homes.

Money market account

Type of savings account offered by banks and credit unions just like regular savings accounts. The difference is that they usually pay higher interest and have higher minimum balance requirements.

Mutual fund share

A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

National Science and Mathematics Access to Retain Talent (SMART) Grants

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Nazi Persecution payment

Benefits provided by countries to victims of Nazi persecution. These include:

  • Austrian Reparation payments

  • German Reparation payments

  • Netherlands WUV payments

  • Other payments received as a result of being a victim of Nazi persecution

Netherlands Act (WUV) payments to victims of Japanese persecution

The Dutch government makes payments under the Netherlands' Act on Benefits for Victims of Persecution 1940-1945. Payments are for both Dutch and non-Dutch people who, during the Japanese occupation of the Netherlands East Indies (now the Republic of Indonesia) in World War II, were victims of persecution.

Netherlands Act (WUV) payments to victims of Nazi persecution

The Dutch government makes payments under the Netherlands' Act on Benefits for Victims of Persecution 1940-1945. Payments are for both Dutch and non-Dutch people who, during the German occupation of the Netherlands and Netherlands in World War II, were victims of persecution.

Non-homestead Real Property

Land and buildings or immovable objects attached permanently to the land but is not the person’s principal place of residence.

Non-term life insurance policy

Often referred to as whole life or universal life policies, non-term life insurance policies have both face value (FV) and cash surrender value (CSV). These types of policies also generate dividends. Generally, the person can borrow against the cash surrender value or the policy can be cashed in for the CSV.

Non-Title IV of Higher Education Act and non-Bureau of Indian Affairs student financial aid

Such aid includes grants, scholarships, gifts and so on.

Operating assets

Assets used in a trade or business such as bank accounts, stocks, bonds, mutual funds, certificates of deposit, trusts or property agreements.

Payroll Deduction Individual Retirement Account (IRA)

A retirement savings plan in which an employer sets up a payroll deduction to fund an IRA program with a financial institution, such as a bank, mutual fund or insurance company.

Pell grants

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Pension payments

A fixed sum paid regularly to retired people or their dependents.

Perkins loan

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Personal property

Property that is not considered real property.

Plan to Achieve Self Support (PASS) financial aid

A plan approved by the Social Security Administration that allows certain assets or income of the person to be excluded in determining benefits for some assistance programs.

Pooled trusts

A trust established for the sole benefit of a person of any age with a certified disability and that contains a separate account for two or more persons who also have a certified disability for the purpose of investment and management of funds in the accounts. It is administered by a non-profit organization.

Presidential Access scholarships

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Private annuity

An annuity that is set up by a person who is not an employee of an insurance company or financial institution.

Profit Sharing Plan

A plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company’s earnings. Also known as a deferred profit-sharing plan (DPSP).

Promissory notes

A written, unconditional agreement whereby one party promises to pay a specified sum of money at a specified time (or on demand) to another party. It may be given in return of goods, money loaned, or services rendered.

Property agreements

A pledge or security of particular property for the payment of a debt or the performance of some other obligation within a specified period.

Public assistance appeal payments

Payments resulting from an appeal of public assistance benefits.

Qualified Tuition Program (QTP), also referred to as a Section 529 Plan

Allows individuals to prepay or contribute to an account established for paying a designated beneficiary’s education expenses beyond high school at an eligible educational institution. QTPs can be established and maintained by states, agencies, instrumentalities of states, and eligible educational institutions. Individuals may contribute to a QTP regardless of the amount of their income.

Radiation Exposure Compensation Act payments

Payments made by the federal government to certain individuals (or their survivors) who were exposed to radiation from government nuclear testing and uranium mining.

Real property

Land, all buildings, structures, improvements, or other fixtures on it belonging or pertaining to the land, including mobile or manufactured homes attached to a permanent foundation on land owned by the client, all mines, minerals, fossils, and trees on or under it, and life estate and remainder interests.

Relocation Assistance payments, federal

Relocation assistance for displaced persons under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, the Housing and Redevelopment Act of 1965, or the Housing Act of 1965. This assistance is paid when the government requires an individual to move.

Relocation Assistance payments, state and local

Relocation assistance for displaced persons funded by state and local governments. This assistance is paid when the government requires an individual to move.

Representative payee misuse payments

Restitution payments of SSI, RSDI, and Special Veterans Benefits for the Elderly due to representative payee misuse.

Retirement plans

An arrangement to provide individuals and their spouses with income during retirement. Employers, insurance companies, the government or other institutions such as employer associations or trade unions may set up retirement plans.

Reverse mortgages

A special type of home equity loan for people age 62 or older. Reverse mortgages allow owners to convert some of the equity in their home to cash. The loan does not usually have to be repaid during the homeowner’s lifetime.

Revocable trust

A trust in which the grantor(s) reserve the right to revoke, reclaim or take back the assets deposited in the trust.

Ricky Ray Hemophilia Relief Act payments

Settlements to people with blood-clotting disorders who may have contracted an HIV infection from a blood transfusion. The current and former spouses of these people as well as their children who also contracted HIV are also eligible for the settlement payment.

Robert C. Byrd Honors Scholarship Program (also known as Byrd Honors Scholarships)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Roth 401(k) Plan

A retirement savings plan option for employers to offer their employees. A Roth 401(k) is a hybrid that combines features of a Roth Individual Retirement Account and a traditional 401(k).

Roth Individual Retirement Account (IRA)

An IRA allowing a person to set aside after-tax income up to a specified amount each year.

Savings Incentive Match Plans for Employees (SIMPLE) Individual Retirement Account (IRA)

An IRA-based retirement savings plan designed specifically to make it easier for small employers to establish a retirement plan for employees. A Simple IRA is a salary-reduction plan that allows employees to divert some compensation into retirement savings. Contributions to a Simple IRA are deposited into a separate account for each participating employee.

Section 529 Plan (also known as Qualified Tuition Program (QTP))

See Qualified Tuition Program.

Self-employment assets

Property used in a trade or business, including vehicles, tools, machinery, farm implements, unsold inventory, business checking accounts, non-homestead real property, rental property, etc.

Settlement agreement

A resolution between disputing parties in a lawsuit, reached either before or after court action begins.

Simplified Employee Pension (SEP) Individual Retirement Account (IRA)

A special type of IRA that can be established by a small-business employer or by self-employed people. Under a SEP IRA, each participant has his or her own Traditional IRA to which the employer contributes. The contributions are excluded from the employee’s pay and are not taxable until distributed from the plan.

Social Welfare Fund

An account or trust account held by the county of financial responsibility for the purposes of providing maintenance and support to the person. The person's earned or unearned income may be deposited into this account and disbursed by the county, for the person's benefit.

Special Leveraging Educational Assistance Partnership (SLEAP) Program

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Special Needs Trusts

A trust established for the sole benefit of a person who is certified disabled.

Spousal Individual Retirement Account (IRA)

An IRA set up by an employed spouse to contribute for a non-working spouse or for a spouse who has little or no income.

State annuities for certain veterans

An annuity paid by a state, to a person, and/or a person’s spouse, on the basis of the state’s determination that the person is a veteran and is over age 65, is blind, or has a disability.

State Student Incentive Grant Program (also known as the Leveraging Educational Assistance Partnership (LEAP) program)

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Stocks

Shares of stock represent ownership in a business corporation.

Student financial aid

Loans, grants, scholarships, fellowships, internships, some training expenses, gifts and work study funds provided to a person enrolled in and attending an educational institution.

Supplemental Education Opportunity Grants (SEOG) Program

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Supplemental Needs Trusts

Trust established and funded by a third party to provide for the reasonable living expenses and other basic needs of a person with a disability when benefits from publicly funded benefit programs are not sufficient to provide adequately for those needs.

Supplemental Security Income (SSI) Dedicated Child Accounts

This account is set up by the representative payee of a child under the age of 18 with past due monthly benefits. The account continues to be excluded after the child has reached age 18.

Tax credits

An amount of money that can be offset against a tax liability.

Tax refund

A state or federal refund of the difference between the taxes paid and taxes owed.

Teacher Education Assistance for College and Higher Education (TEACH) grants

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Term certain annuity

An annuity under which payments are scheduled to continue for a specified period, such as for 10 years. The payments will be paid out to the annuitant’s beneficiaries or estate if the annuitant dies before the payment term ends.

Term life insurance

Insurance policies that have Face Value (FV) but do not have a Cash Surrender Value (CSV) or pay dividends. The insured can cancel the policy but there is no cash value to receive. The death benefit is only available upon the insured’s death.

Third Party Trusts

A trust established and funded by a person (third party grantor) during his or her lifetime or through a will for the benefit of another person.

Thrift Savings Plans (TSPs)

A federal government sponsored retirement defined contribution plan for federal employees. Contributions are held in individual accounts rather than in a trust fund.

Time deposits

Another term for a savings account or certificate of deposit (CD) held in a financial institution.

Title IV of the Higher Education Act of 1965 (HEA) student financial aid

A federal law that authorizes programs that provide student financial aid. These programs include, but are not limited to:

  • Pell grants

  • Academic Competitiveness Grants

  • National Science and Mathematics Access to Retain Talent (SMART) grants

  • Federal Family Education Loan (FFEL) Program. FFEL includes four components:

    • Stafford Loans

    • Unsubsidized Stafford Loans

    • Federal PLUS Loans

    • Federal Consolidation Loans

  • Perkins Loans

  • Federal Supplemental Education Opportunity Grant (SEOG) Program

  • Supplemental Education Opportunity Grants (SEOG) Program

  • Work Study Program

  • Teacher Education Assistance for College and Higher Education (TEACH) Grants

  • Direct Loan Program. Direct Loans include four components:

    • Direct Subsidized Loans

    • Direct Unsubsidized Loans

    • Direct PLUS Loans

    • Direct Consolidation Loans

  • Leveraging Educational Assistance Partnership (LEAP) Program

  • Special Leveraging Educational Assistance Partnership (SLEAP) Program

  • Robert C. Byrd Honors Scholarship Program (also known as Byrd Honors Scholarships)

  • TRIO Program

  • Academic Achievement Incentive Scholarships

  • Gear Up

  • High School Equivalency Program (HEP)

  • College Assistance Migrant Program (CAMP)

  • State Student Incentive Grant Program

  • Presidential Access Scholarships

Tort settlement

Rights, obligations, and remedies applied by courts in civil proceedings to provide relief for persons who have suffered harm from the wrongful acts of others.

Trade or business asset

Property used in a trade or business, including vehicles, tools, machinery, farm implements, unsold inventory, business checking accounts, non-homestead real property, rental property, etc.

Traditional Individual Retirement Account (IRA)

An IRA that allows individuals to direct pretax income, up to specific annual limits, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed).

Treasury bill

A short-term debt obligation backed by the U.S. government with a maturity of less than one year.

Tribal Land Settlements or Judgements

Funds held in trust by the Secretary of the Interior or distributed per capita pursuant to a plan prepared by the Secretary of the Interior. Including:

  • Judgment funds distributed per capita under P.L. 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs reservations.

  • Distributions of claims settlement funds under P.L. 99-264, P.L. 100-153, and P.L. 100-212 to members of the White Earth Band of Chippewa Indians from the White Earth Reservation Land Settlement Act of 1985 (WELSA).

  • Per capita payments made under 25 USC § 1407 to members of the Bois Forte Band of Chippewa Indians pursuant to the agreement to restrict tribal rights to hunt and fish in ceded territories.

  • Per capita payments made under P.L. 85-794 to members of the Red Lake Band of Chippewa Indians from the proceeds of the sale of timber and lumber on the Red Lake Reservation.

  • Receipts derived from trust lands and distributed under P.L. 94-114 to the White Earth Band of Chippewa Indians regarding submarginal land held in trust by the United States.

  • Judgment funds distributed under P.L. 98-123 § 3 to the Red Lake Band of Chippewa Indians.

  • Per capita and dividend payment distributions of judgment funds made under P.L. 99-130 to members of the Prairie Island Sioux, Lower Sioux, and Shakopee Mdewakanton Sioux Communities of Minnesota.

  • Funds distributed per capita under P.L. 99-146 to members of the Chippewa of Lake Superior and the Chippewa of the Mississippi.

TRIO Programs (TRIO)

Student financial aid programs created by Title IV of the Higher Education Act of 1965. TRIO includes eight programs targeted to serve and assist low-income individuals, first-generation college students, and people with disabilities:

  • Educational Opportunity Centers

  • Ronald E. McNair Post-baccalaureate Achievement

  • Student Support Services

  • Talent Search

  • Training Program for Federal TRIO Programs Staff

  • Upward Bound

  • Upward Bound Math-Science

  • Veterans Upward Bound

Trust

Any arrangement, in which a grantor transfers money or property to a trustee with the intention that it be held, managed or administered by the trustee for the benefit of certain designated persons.

Uniform Gift to Minors Act (UGMA)/Uniform Transfer to Minors Act (UTMA)

The Uniform Gift to Minors Act (UGMA) established a way for a minor to own securities without requiring the services of an attorney to prepare trust documents or the court appointment of a trustee. The terms of this trust are established by a state statute instead of a trust document. The Uniform Transfer to Minors Act (UTMA) is similar, but also allows minors to own other types of property, such as real estate, fine art, patents and royalties, and for the transfers to occur through inheritance.

United States savings bond

A bond issued by the government and sold to the general public.

Universal Life Insurance

Provides insurance over a specified period, and builds cash value for policy owners over time. There are several types of universal life policies, including variable universal and equity indexed universal life. All universal life policies include a cash account in addition to the standard death benefit.

Variable annuity

A type of annuity in which periodic payments vary according to income generated by assets in an underlying investment portfolio. Payment amounts may fluctuate because the annuity payments vary based upon the performance of the market.

Vehicles

May be any registered or unregistered conveyance used on air, land, or water, including, but not limited to cars, trucks, motorcycles, boats, snowmobiles, animal-drawn vehicles, and animals.

Veterans Benefits for educational assistance

The Department of Veterans Affairs (VA) provides educational assistance through different programs, including vocational rehabilitation.

Veterans’ Children with Certain Birth Defects payments

Payments made to children of Vietnam or Korean veterans born with spina bifida, or payments made to the children of women Vietnam veterans if they have certain birth defects.

Vietnamese Commando Compensation Act Payments

Payments made to an individual who was captured and interned by the Democratic Republic of North Vietnam as a result of that person's participation in certain military operations (known as OPLAN 34A or its predecessor, or OPLAN 35).

Voluntary Employees' Beneficiary Association (VEBA) payments

Benefits paid to members of the mutual association or their beneficiaries.

Whole Life Insurance

A form of life insurance that applies part of the premium payments to build an investment or savings value for the policy owner. The investment or savings value is the cash surrender value (CSV) of the policy. A modified whole life policy charges smaller premiums for a specified length of time after which the premiums increase for the remainder of the policy.

Women, Infant and Children (WIC) vouchers

A federal program authorized by the Child Nutrition Act of 1966 to provide nutritious food and nutrition education to low-income pregnant and postpartum women and their children.

Workers’ compensation settlement

An agreement between a worker injured on the job and an employer-paid insurance program providing benefits in the form of medical expenses and lost wages. If a worker dies due to an injury on the job, the worker’s beneficiaries are eligible to receive benefits on the worker’s behalf, known as death benefits.