Glossary

Administrator	A person appointed by the court to manage one's estate when he or she dies without leaving a will or if the will did not name an Executor. Administrators have the same duties as executors and are responsible for collecting property, paying debts and taxes and distributing assets to beneficiaries. The only difference is that executors are selected in the Will and administrators are appointed by the court.
Applicable Credit Amount	A federal tax credit (previously known as the Unified Credit) that reduces the amount of gift or estate tax that would otherwise be due. The Applicable Credit Amount for 2007 is $780,800, which effectively means that up to $2 million is assets can be transferred tax free. (See Exemption Amount.) When the a person's estate tax return is filed, the preparer first calculates the amount of tax based on the total value of the net estate, and then subtracts the Applicable Credit Amount to reduce or eliminate the amount of estate tax otherwise due.
Appreciated Property	Property, such as real estate or stock, that has increased in value.
Asset	Anything a person owns that has value.