Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
annuity
1. an obligation to pay a stated sum, usu. monthly or annually, to a stated recipient. ( these payments terminate upon the death of the designated beneficiary. 2. a fixed sum of money payable periodically. 3. a right, often acquired under a life-insurance contract, to receive fixed payments periodically for a specified duration. cf. pension. 4. a savings account with an insurance company or investment company, usu. established for retirement income. ( payments into the account accumulate tax-free, and the account is taxed only when the annuitant withdraws money in retirement.
annuity bond
A bond that lacks a maturity date and that perpetually pays interest. -Also termed consol; perpetual bond; continued bond; irredeemable bond.
annuity certain
an annuity payable over a specified period, regardless of whether the annuitant dies.
annuity depreciation method
A depreciation method that allows for a return of imputed interest on the undepreciated balance of an asset's value. ( The imputed interest is subtracted from the current depreciation amount before it is credited to the accumulated depreciation accounts.
annuity due
an annuity that makes payments at the beginning of each pay period. cf. ordinary annuity.
annuity insurance
An agreement to pay the insured (or annuitant) for a stated period or for life.
annuity policy
an insurance policy providing for monthly or periodic payments to the insured to begin at a fixed date and continue through the insured's life.
annuity trust
A trust from which the trustee must pay a sum certain annually to one or more beneficiaries for their respective lives or for a term of years, and must then either transfer the remainder to or for the use of a qualified charity or retain the remainder for such a use. ( The sum certain must not be less than 5% of the initial fair market value of the property transferred to the trust by the donor. A qualified annuity trust must comply with the requirements of IRC (26 USCA) § 664.
cash-refund annuity
an annuity providing for a lump-sum payment after the annuitant's death of the difference between the total received and the price paid.
charitable remainder annuity trust
A charitable-remainder trust in which the beneficiaries receive for a specified period a fixed payment of 5% or more of the fair market value of the original principal, after which the remaining principal passes to charity.
contingent annuity
1. an annuity that begins making payments when some future event occurs, such as the death of a person other than the annuitant. 2. an annuity that makes an uncertain number of payments, depending on the outcome of a future event.
deferred annuity
an annuity that begins making payments on a specified date if the annuitant is alive at that time. - also termed deferred payment annuity. cf. immediate annuity.
deferred-payment annuity
See deferred annuity under ANNUITY.
fixed annuity
an annuity that guarantees fixed payments, either for life or for a specified period.
government-annuity society
Hist. One of several organizations formed in England to enable the working class to provide for themselves by purchasing, on advantageous terms, a government annuity for life or for a term of years. government bond. See BOND (3)
group annuity
an annuity payable to members of a group, esp. employees, who are covered by a single annuity contract, such as a group pension plan.
group annuity.
See ANNUITY.
immediate annuity
an annuity paid for with a single premium and that begins to pay benefits within the first payment interval. cf. deferred annuity.
joint annuity
an annuity payable to two annuitants until one of them dies, at which time the annuity terminates for the survivor (unless the annuity also provides for survivorship rights). see survivorship annuity.
life annuity
an annuity payable only during the annuitant's lifetime, even if the annuitant dies prematurely.
life-income period-certain annuity
an annuity that pays a specified number of payments even if the annuitant dies before the minimum amount has been paid.
nonrefund annuity
an annuity with guaranteed payments during the annuitant's life, but with no refund to anyone at death. -also termed straight life annuity; pure annuity.
ordinary annuity
an annuity that makes payments at the end of each pay period. cf. annuity due.
private annuity
See ANNUITY.
pure annuity
See nonrefund annuity under ANNUITY.
refund annuity
See ANNUITY.
retirement annuity
an annuity that begins making payments only after the annuitant's retirement. ( if the annuitant dies before retirement, an agreed amount will usu. be refunded to the annuitant's estate.
reverse annuity mortgage
A mortgage in which the lender disburses money over a long period to provide regular income to the (usu. elderly) borrower, and in which the loan is repaid in a lump sum when the borrower dies or when the property is sold. - Abbr. RAM. - Also termed reverse mortgage.
straight annuity
an annuity that makes payments in fixed amounts at periodic intervals. cf. variable annuity.
straight life annuity
see nonrefund annuity.
survivorship annuity
an annuity providing for continued payments to a survivor, usu. a spouse, after the original annuitant dies
tax-deferred annuity
see 403(b) plan under employee benefit plan.
tax-sheltered annuity
See 403(b) plan under EMPLOYEE BENEFIT PLAN.
variable annuity
an annuity that makes payments in varying amounts depending on the success of investment strategy. cf. straight annuity. see variable annuity contract under contract
variable annuity contract
Securities. An annuity whose payments vary according to how well the fund (usu. made up of common stocks) that backs it is performing. SEC Rule 0-1(e)(1) (17 CFR § 270.0-1(e)(1)). See variable annuity under ANNUITY.