intercept, n. Family law. A mechanism by which a portion of an obligor’s unemployment benefits, disability income, income-tax refund, or lottery winnings is automatically diverted to a child-support-enforcement agency to satisfy past-due support obligations. intercept, vb. 1. To divert (money) from a payee to satisfy a financial obligation of the payee. 2. To covertly receive […]
clear residue. The income deriving from funds used to pay a decedent’s debts, administration expenses, and general legacies. — Also termed true residue.
Personal Responsibility and Work Opportunity Reconciliation Act. A 1996 federal law that overhauled the welfare system, as well as requiring states to provide a means for collecting child support by (1) imposing liens on a child-support obligor’s assets, and (2) facilitating income-withholding. • The Act did away with Aid to Families with Dependent Children in
personal responsibility and work opportunity reconciliation act Read More »
accumulation, n. 1. The increase of a thing by repeated additions to it; esp., the increase of a fund by the repeated addition of the income that it creates. 2. The concurrence of several titles to the same thing. 3. The concurrence of several circumstances to the same proof. 4. The retention of dividends for
individual retirement account. A savings or brokerage account to which a person may contribute up to a specified amount of earned income each year. • The contributions, along with any interest earned in the account, are not taxed until the money is withdrawn after a participant reaches 59 1/2 (or before then, if a 10%
individual retirement account Read More »
headright. In American Indian law, a tribe member’s right to a pro rata portion of income from a tribal trust fund set up under the Allotment Act of 1906. • This type of trust fund is funded largely by mineral royalties arising from land held or once held by the tribe member’s tribe. [Cases: Indians
Tax. An interest-free demand loan, usu. from parent to child, in which the borrowed funds are invested and the income from the investment is taxed at the child’s rate. • This type of loan is named for one Harry Crown of Chicago, reputedly one of the first persons to use it. See kiddie tax under
foundation. 1. The basis on which something is supported; esp., evidence or testimony that establishes the admissibility of other evidence (laying the foundation). [Cases: Evidence 117, 366–381. C.J.S. Evidence §§ 208, 819–822, 824–833, 870–878, 881, 884, 889, 917–919, 932–933, 935–939, 949, 957, 959–962, 964, 976, 982–983, 986, 992–994, 998, 1000, 1002–1006, 1008, 1010–1022, 1026–1034.] 2.
The income stream from which a state or municipality pays its obligations unless a law calls for payment from a special fund. See general fund under FUND(1). [Cases: Municipal Corporations 886; States 126. C.J.S. Municipal Corporations § 1627; States § 228.]
An unfunded compensation arrangement, frequently offered to executives, that defers compensation and the recognition of its accompanying taxable income to a later date. • It is termed “nonqualified” because it does not qualify for favorable tax treatment under IRC (26 USCA) § 401(a). The plan avoids the restrictions on qualified plans, esp. the limits on
nonqualified deferred compensation plan Read More »