Fair Market Value: The price at which an item can be sold at the present time between two unrelated people, neither under compulsion to buy or sell.

Family Attribution Rules: A federal tax rule that may cause the ownership of stock by one family member to be attributed to another for purposes of determining the income tax consequences of a distribution by the corporation in redemption of the stock.

Fee Simple Ownership: Outright ownership of property with absolute rights to dispose of or gift it to anyone.

Fiduciary: A person in the position of great trust and responsibility, such as the executor of a will or the trustee of a trust.

Five and Five Power: A provision that allows a trust beneficiary to withdraw the greater of $5,000 or five percent of the principal from a trust without causing the entire trust property to be included in his or her estate for federal estate taxation.

Fixed-Period Option: Life insurance settlement option in which the policy proceeds are paid out over a fixed period of time.

Funding Instrument: An insurance contract or trust agreement that states the terms under which the funding agency will accumulate, administer, and disburse the pension funds.

Future Interest: An ownership interest in property in which unlimited possession or enjoyment of property is delayed until some future time.