Wealth and Estate Services Glossary

Wealth & Estate Services Glossary

Understanding financial terminology can help you feel more confident when making decisions about your future. This glossary is designed to provide clear, straightforward definitions for commonly used terms across our Wealth Management services—including investment management, retirement planning, estate services, fiduciary services, and institutional support.

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Term Definition
Account Beneficiary The person or entity designated to receive the assets of an account upon the account holder's death.
Annual Gift Exclusion The IRS-defined amount you can gift to an individual each year without triggering gift tax reporting requirements.
Annuity A contract with an insurance company that provides a stream of income, often used as part of a retirement income plan.
Asset Allocation The practice of dividing investments among different asset categories to balance risk and reward based on goals and time horizon.
Asset Protection Strategies used to protect an individual's or organization’s assets from taxes, creditors, or legal action.
Board Oversight The duty of an organization's board of directors to supervise investments, policies, and fiduciary responsibilities.
Charitable Trust A trust designed to benefit a charitable organization while offering potential tax advantages to the donor.
Comprehensive Financial Plan A full-spectrum plan that addresses multiple areas of a person’s financial life, such as investments, insurance, taxes, retirement, and estate goals.
Custody Account An account where a financial institution holds and safeguards a client’s financial assets, while the client retains control of investment decisions.
Discretionary Management An arrangement where an investment advisor makes buy/sell decisions on behalf of a client according to an agreed-upon strategy.
Distribution A payment or withdrawal made from a retirement, trust, or investment account.
Diversification The process of spreading investments across different asset classes to reduce risk.
Endowment A permanent fund that supports an organization through income generated by invested principal.
Estate All property and assets owned by a person at the time of their death.
Estate Planning The process of organizing your assets and intentions for how they should be managed and distributed during life and after death.
Executor The person or entity named in a will to carry out the terms of the estate after the death of the individual.
Fiduciary A person or entity legally and ethically obligated to act in the best interest of another party, often with decision-making power over financial matters.
Foundation A type of nonprofit organization established to support charitable activities through grants and funding.
Grantor The person who creates a trust and transfers assets into it.
Guardian of the Estate A court-appointed individual or institution responsible for managing the financial affairs of someone who is unable to do so themselves.
Income Planning Developing a strategy to provide reliable income during retirement or for beneficiaries of a trust or estate.
Investment Management The professional management of various securities and assets to meet specified investment goals for the benefit of the client.
Investment Policy Statement (IPS) A document outlining the objectives, strategies, and guidelines for managing an investment portfolio.
IRA Rollover The transfer of funds from a retirement plan (e.g., 401(k)) into an IRA to maintain tax-deferred status.
Legacy Planning Planning how your values, assets, and philanthropic goals will be passed on to future generations or causes.
Mutual Fund A pooled investment vehicle that buys a diversified portfolio of securities on behalf of shareholders.
Personal Custody Services Secure safekeeping of assets with administrative support and reporting—without investment advisory services.
Power of Attorney A legal document allowing one person to act on behalf of another in financial or medical matters.
Required Minimum Distribution (RMD) The minimum amount you must withdraw from certain retirement accounts each year after reaching a specific age, as required by the IRS.
Revocable Trust A trust that can be altered or canceled by the grantor during their lifetime.
Risk Tolerance An investor’s ability and willingness to endure market volatility and potential losses.
Spending Policy Guidelines used by endowments and foundations to determine how much money can be distributed annually while maintaining long-term financial stability.
Tax-Efficient Strategy Planning investments and withdrawals in ways that reduce tax liabilities and maximize after-tax returns.
Trust A legal arrangement where assets are held by a trustee for the benefit of designated beneficiaries.
Trust Administration The ongoing management of a trust, including distribution of assets, recordkeeping, and communication with beneficiaries.
Trustee The person or institution responsible for managing the assets in a trust and carrying out its terms.
Will A legal document stating a person’s wishes regarding asset distribution and care of dependents after death.

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