Estate Planning Dictionary

We have put together our own dictionary with some of the common terms you should expect. Keep in mind these terms are for general use only, and should not be used for legal purposes.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A 

  • Administrator – A person appointed by the court to handle an estate when there is no will. 
  • Assets – Everything you own, including money, property, investments, and personal belongings. 
  • Attorney-in-Fact – A person you choose to make legal or financial decisions on your behalf through a power of attorney. 

B 

  • Beneficiary – A person or entity who will receive assets from a will, trust, or life insurance policy. 
  • Bequest – A gift of money or property left to someone in a will. 
  • Bypass Trust – A type of trust used to reduce estate taxes when passing assets to heirs. 

C 

  • Codicil – A legal amendment to an existing will. 
  • Conservatorship – A court process where someone is appointed to manage another person’s affairs due to incapacity. 

D 

  • Decedent – A person who has passed away. 
  • Deed – A legal document proving ownership of real estate. 
  • Durable Power of Attorney – A document allowing someone to make financial or legal decisions for you if you become unable to do so.

  • Dependent Administration – a type of probate process where the estate is administered under the supervision of the court, requiring court approval for many actions

E 

  • Estate – Everything a person owns at the time of their death. 
  • Estate Tax – A tax imposed on the total value of a person’s estate before distribution to beneficiaries. 
  • Executor – The person named in a will to manage the estate and carry out final wishes. 

F 

  • Fiduciary – Someone legally required to act in another person’s best interest, such as an executor or trustee. 
  • Funding a Trust – Transferring assets into a trust so they are managed according to its terms. 

G 

  • Gift Tax – A tax on large financial gifts given during a person’s lifetime. 
  • Grantor – The person who creates a trust. 
  • Guardianship – A legal relationship where someone is appointed to care for a minor or incapacitated adult. 

H 

  • Heir – A person legally entitled to inherit assets when someone dies without a will. 
  • Holographic Will – A handwritten and signed will that may be recognized as legal in some states. 

I 

  • Incapacity – When a person is no longer able to manage their affairs due to illness or disability. 
  • Inheritance – Money, property, or other assets passed to someone after a person’s death. 
  • Irrevocable Trust – A type of trust that cannot be changed or canceled after it is created. 

  • Independent Administration – the executor or administrator manages the estate’s affairs without ongoing court supervision

J 

  • Joint Tenancy – A type of property ownership where two or more people own a property together, and when one owner dies, the surviving owner(s) automatically inherit the deceased’s share. 

L 

  • Last Will and Testament – A legal document outlining how a person’s assets should be distributed after death. 
  • Living Trust – A trust created during a person’s lifetime to manage assets and avoid probate. 
  • Living Will – A document that states a person’s wishes for medical care if they become unable to communicate. 

M 

  • Medicaid Planning – Legal strategies to protect assets while qualifying for long-term care benefits. 
  • Minor – A person under the legal age of adulthood, typically under 18. 

N 

  • Notary Public – An official who verifies signatures on legal documents. 
  • Next of Kin – A person’s closest living relative(s) who may inherit assets if there is no will. 

P 

  • Per Stirpes – A method of distributing assets where a deceased person’s share passes to their descendants. 
  • Personal Representative – Another term for an executor or administrator of an estate. 
  • Power of Attorney (POA) – A legal document allowing someone to act on your behalf for financial or medical decisions. 
  • Probate – The court process of validating a will and distributing an estate. 
  • Probate Court – The legal system that oversees the handling of wills, estates, and guardianships. 

R 

  • Revocable Trust – A trust that can be changed or canceled by the person who created it. 
  • Residue of Estate – The remaining assets in an estate after debts and specific gifts have been distributed. 

S 

  • Special Needs Trust – A trust designed to provide financial support for a person with disabilities without affecting their government benefits. 
  • Spendthrift Trust – A trust that limits how a beneficiary can use the assets, protecting them from misuse or creditors. 
  • Successor Trustee – The person who takes over managing a trust after the original trustee can no longer do so. 

T 

  • Testamentary Trust – A trust that is created through a person’s will and goes into effect after their death. 
  • Trust – A legal arrangement where a trustee manages assets for the benefit of others. 
  • Trustee – The person responsible for managing a trust according to its terms. 

U 

  • Uniform Probate Code (UPC) – A set of laws designed to simplify estate planning and probate across different states. 

W 

  • Will – A legal document that directs how a person’s assets should be distributed after death. 

  • Will Contest – A legal challenge to the validity of a will. 
  • Witness – Someone who signs a will to confirm that the person creating it did so voluntarily and with a sound mind.