A

Administration – The process of carrying out an estate plan after the creator of that estate plan has died. Includes distributing assets to beneficiaries, as well as paying any debts left by the decedent or taxes incurred at death.

Agent – The individual appointed in a power of attorney agreement who is qualified to act on another’s behalf in medical or financial matters. Also referred to as an Attorney-in-Fact.

B

Beneficiary – One who is designated to receive assets from an estate plan.

C

Codicil – An amendment to an existing will.

Conservator – One who manages a minor's or incapacitated person's property and financial affairs.

D

Decedent – A deceased person.

Durable Power of Attorney – An agreement appointing an agent to act on one’s behalf to manage his or her affairs. A durable power of attorney remains in effect even after the incapacity of the principal.

E

Estate Planning – A process of creating legal documents such as wills and trusts to hold property. Upon death or incapacity, this property is distributed according to said estate planning documents.

F

Family Trust – A trust agreement created for the benefit of the family of the Settlor(s).

Fiduciary – Someone who manages and distributes money or property for the Principal or for the beneficiaries of an estate plan according to the terms of that plan. Also SEE: Personal Representative; Trustee, Agent, Conservator.

Financial Durable Power of Attorney – A durable power of attorney agreement appointing an agent to handle financial affairs. These agreements may either be immediately effective or springing (effective only upon the incapacity of the principal).

G

Grantor – One who establishes a trust. SEE: Settlor

Guardian – One who makes personal decisions for a minor or incapacitated person. For example, a legal guardian might be granted the authority to make decisions regarding the person's housing and medical care.

H

Heir – One who is entitled by law to receive property upon another’s death in the absence of an estate plan.

I

Intestate – An individual dying without leaving a will.

Irrevocable Trust – A trust which cannot be revoked, amended, or otherwise modified by the Settlor of said trust.

J

Joint Tenancy – A circumstance in which more than one person (often, a married couple) own and manage real property together and in conjunction.

L

Lady Bird Deed – A type of deed in which the Grantor retains full control of a real property during their lifetime and the property is automatically transferred to a set beneficiary or beneficiaries upon death.

M

Marital Deduction – An exemption to the gift tax when property passes from one spouse to another.

Medical Durable Power of Attorney – An agreement appointing an agent to handle medical affairs and decision-making on behalf of the principal in the event of incapacity.

P

Personal Representative – One who is appointed under a will to carry out the administration of an estate. Sometimes referred to as an executor.

Pour-Over Will – A will which accompanies a trust agreement and passes assets at death which may not have been added into said trust during lifetime.

Principal – (1) The major property held in a trust and intended to be distributed under the terms of said trust. (2) One who appoints another to act on their behalf and for their benefit.

Probate – A judicial court process of settling an estate and legally distributing the property held by that estate.

R

Residue – Any property left in an estate after all specified beneficiary distributions have been made and all debts and expenses have been paid off.

Revocable Trust – A trust which may be amended, modified, or completely revoked by the settlor during their lifetime. Also called a Living Trust.

S

Self-dealing – A trustee acting in their own financial self-interest instead of according to the terms of the trust agreement.

Settlor – One who establishes (settles) a trust agreement.

Special Needs Trust – A trust agreement established for the benefit of a disabled individual, to hold in trust assets for that individual’s benefit and use over time, with the intent of that individual remaining qualified for government benefits. Sometimes known as a Supplemental Needs Trust.

Spendthrift Provision – A trust provision limiting transfers in order to protect a beneficiary’s share of assets from creditors.

T

Tangible Personal Property – Property which is neither money nor real estate, but rather tangible items of value. May include vehicles, jewelry, or other personal effects.

Tenancy in Common – A circumstance in which multiple people own individual shares of a property and may sell or transfer these shares of their own accord.

Testamentary – Pertaining to a will.

Testamentary Trust – A trust which comes into effect after a will has been executed.

Testator – An individual who creates and signs a will.

Transfer on Death Designation – For financial accounts, a designation naming a beneficiary to whom the account assets will pass to upon death of the account holder.

Trust – A legal agreement where property assigned to the trust is owned by said trust and managed by a trustee.

Trustee – One who holds, manages, and administers trust property in accordance with the terms of a trust.

W

Will – A document bequeathing property to specified individuals upon the testator’s death, carried out by a personal representative also named in the will.