Tangible Property: Property that is capable of being perceived by the senses - generally refers to real estate, personal property, and moveable property that has value of its own and is not merely a representation of real value. Land, machinery, buildings, crops, and livestock are examples of tangible property.

Tax Basis: The owner's cost of an asset for income and estate tax purposes as determined under the Internal Revenue Code and IRS regulations.

Tenants In Common: A form of asset ownership in which two or more persons have an undivided interest in the asset and the ownership shares are not required to be equal.

Term Insurance: Type of life insurance that provides temporary protection for a specified number of years.

Testamentary Trust: A trust established after the death of the grantor under the provisions of the grantor's will.

Testator: One who writes or has written and signs a will.

Transfer for Value Rule: A federal income tax rule which states that if ownership of a life insurance policy was transferred for a valuable consideration, a portion of the death proceeds may be includible in gross income rather than qualifying for the usual income tax exemption of death proceeds. Five "safe harbor" exceptions to this rule exist. They include: a transfer to the insured, to a partner of the insured, to a partnership in which the insured is a partner, to a corporation in which the insured is a shareholder or officer, and to a corporation from another corporation in a tax-free reorganization.

Trust: A legal arrangement in which an individual (the trustor) gives fiduciary control of property to a person or institution (the trustee) for the benefit of beneficiaries.

Trust Declaration or Trust Instrument: A document defining the nature and duration of the trust, the powers of the trustee, and identifying the trust's beneficiary(ies).

Trustee: An individual or organization which holds or manages and invests assets for the benefit of another.

Trusteed Cross-Purchase Buy-Sell Agreement: The use of a third party ("trustee") to hold the life insurance policies that fund a cross-purchase agreement, and to see that the terms of the agreement are fulfilled at an owner's death; may be used to avoid a multiplicity of policies when several owners are involved.

Twisting: Excessive trading in a client's account by a broker seeking to maximize commissions regardless of the client's best interests, in violation of NASD rules, also called churning or overtrading.