Estate Planning Terms Glossary: Your Complete Guide to Understanding Wills, Trusts, and Probate
Estate planning involves legal, financial, and personal decisions that determine how your property and responsibilities will be managed if you become incapacitated or pass away. This comprehensive glossary defines key terms used in estate planning so you can navigate documents, meetings, and legal discussions with confidence.
A
Administrator – A person appointed by the court to manage and distribute an estate when someone dies without a valid will. Similar to an executor but appointed by the court instead of the deceased.
Advance Directive – A legal document that outlines your medical preferences if you cannot communicate or make decisions yourself. It often includes a living will and healthcare power of attorney.
Affidavit – A written statement confirmed by oath or affirmation, used as evidence in estate proceedings such as probate filings.
Agent – The person authorized to act on your behalf under a power of attorney. This individual can handle financial or healthcare matters as specified in the document.
Annuity – A financial product that provides periodic payments, often used in retirement and estate planning to ensure income for life or a set period.
Asset – Anything of value owned by an individual, such as real estate, investments, personal property, business interests, or digital accounts.
Assignment of Property – A written transfer of ownership rights from one person to another, often used to move assets into a trust.
B
Beneficiary – A person or organization designated to receive assets, insurance proceeds, or benefits from a will, trust, retirement account, or life insurance policy.
Bequest – A gift of personal property or money left to someone in a will. If it involves real estate, it is often called a devise.
Bond – A form of insurance sometimes required by the court to ensure an executor or administrator performs their duties properly.
Bypass Trust – Also called a credit shelter or family trust, it is designed to minimize estate taxes by using both spouses’ estate tax exemptions.
C
Capital Gains Tax – The tax paid on profits from the sale of assets such as real estate, stocks, or investments. Estate planning often includes strategies to reduce or defer this tax.
Charitable Trust – A trust created to benefit a charitable organization. It can provide tax benefits for the donor while supporting causes they care about.
Codicil – A written amendment or addition to a will. It allows changes without creating an entirely new document.
Community Property – Property acquired by spouses during marriage that is owned equally under state law, typically in states like California, Texas, and Arizona.
Conservator – A court-appointed person responsible for managing the financial affairs of an adult who cannot do so due to incapacity.
Contingent Beneficiary – A person who inherits if the primary beneficiary dies or cannot accept the inheritance.
Corpus (of a Trust) – The main body or principal amount of assets held in a trust.
D
Decedent – The person who has passed away.
Deed – A legal document transferring ownership of real property from one person to another.
Devise – A gift of real property through a will.
Directive to Physicians – Another term for a living will, outlining medical treatment preferences.
Discretionary Trust – A trust in which the trustee has full discretion over how and when to distribute assets to beneficiaries.
Disinheritance – The act of intentionally excluding someone, usually a family member, from receiving an inheritance.
Durable Power of Attorney – A power of attorney that remains in effect even if the person granting it becomes incapacitated.
E
Estate – The total property, assets, and debts owned by an individual at death.
Estate Administration – The process of collecting, managing, and distributing an estate’s assets after death.
Estate Planning – The preparation of legal documents that outline how assets will be managed, taxes minimized, and care provided during incapacity or after death.
Estate Tax – A federal or state tax imposed on the transfer of a deceased person’s estate before distribution to beneficiaries.
Executor – The person named in a will to manage and distribute the estate according to the decedent’s wishes.
Exemption (Estate Tax) – The portion of an estate that is exempt from estate taxes. The federal exemption changes annually.
F
Family Limited Partnership (FLP) – A legal entity often used to manage family-owned assets, providing tax benefits and asset protection.
Fiduciary – A person or entity legally obligated to act in another’s best interest, such as an executor, trustee, or attorney-in-fact.
Funding a Trust – The act of transferring assets into a trust so it becomes effective and enforceable.
G
General Power of Attorney – A document granting an agent broad powers to handle your financial affairs.
Gift Tax – A tax imposed on the transfer of property during your lifetime without receiving full value in return. The IRS allows an annual exclusion amount per recipient.
Grantor – The person who creates and funds a trust. Also called a settler or trustor.
Guardian – A person appointed to care for a minor child or an incapacitated adult.
H
Heir – A person legally entitled to inherit from an estate under state law when there is no will.
Holographic Will – A handwritten will signed by the testator. Some states recognize them, while others do not.
Homestead Exemption – A legal provision protecting a portion of a home’s value from creditors and property taxes.
I
Inheritance – Assets received from someone who has died.
Incapacity – The condition of being unable to manage one’s personal or financial affairs.
Inter Vivos Trust – A trust created and effective during the grantor’s lifetime. Also known as a living trust.
Intestate – Dying without a valid will. State intestacy laws determine how assets are distributed.
Irrevocable Trust – A trust that cannot be changed or revoked after it is signed. It can provide estate tax advantages and asset protection.
J
Joint Tenancy – A form of property ownership by two or more people where the survivor automatically inherits the deceased’s share.
Joint Will – A single document executed by two people, usually spouses, outlining mutual estate plans.
L
Last Will and Testament – The foundational estate planning document stating how property should be distributed after death and who will serve as executor.
Letters Testamentary – The official document issued by a probate court giving an executor authority to act on behalf of an estate.
Letters of Administration – Similar authority granted by the court when no will exists and an administrator is appointed.
Life Estate – The right to use and benefit from property for one’s lifetime, after which ownership passes to another person.
Living Trust – A trust established during one’s lifetime that holds property and can help avoid probate.
Living Will – A document outlining medical treatment preferences in case of incapacity.
Lodging the Will – The act of submitting a will to the probate court for formal recognition.
M
Marital Deduction – A provision allowing unlimited transfer of assets between spouses without incurring federal estate or gift taxes.
Medical Power of Attorney – A legal document granting another person authority to make healthcare decisions for you if you cannot.
Minor Beneficiary – A beneficiary under the age of 18 who may require a guardian or trustee to manage assets.
N
No-Contest Clause – A clause in a will or trust discouraging legal challenges by disinheriting anyone who contests the document.
Non-Probate Assets – Assets that transfer automatically at death without probate, such as life insurance or joint accounts.
Notary Public – An official authorized to witness and authenticate legal documents.
Nuncupative Will – An oral or spoken will made in front of witnesses, recognized only in limited circumstances.
O
Outright Gift – A direct distribution of property or money to a beneficiary without restrictions.
Ownership Title – The legal status showing who holds rights to a property, which determines how it is transferred at death.
P
Per Capita – A distribution method where each living beneficiary in a generation receives an equal share.
Per Stirpes – A distribution method where descendants receive their deceased ancestor’s share.
Personal Property – Movable property, including cash, jewelry, vehicles, and household goods.
Personal Representative – A general term for the executor or administrator managing an estate.
POD (Payable on Death) – A designation on bank accounts allowing direct transfer to a named beneficiary without probate.
Pour-Over Will – A will that transfers any remaining assets into a living trust at death.
Power of Attorney (POA) – A legal document granting someone authority to act on your behalf for financial or healthcare matters.
Probate – The court-supervised process of validating a will, settling debts, and distributing assets.
Probate Court – The specialized court that handles estate administration, guardianships, and related matters.
Probate Estate – Assets subject to probate proceedings.
Q
Qualified Terminable Interest Property (QTIP) Trust – A trust used in marital estate planning to provide income to a surviving spouse while preserving principal for children from previous relationships.
Qualified Domestic Trust (QDOT) – A trust allowing a noncitizen spouse to qualify for the marital estate tax deduction.
R
Real Property – Land and anything permanently attached to it, such as buildings or structures.
Residuary Estate – The remaining portion of an estate after debts, taxes, and specific gifts have been distributed.
Revocable Trust – A living trust that can be amended or revoked during the grantor’s lifetime.
Right of Survivorship – The automatic transfer of property ownership to the surviving joint owner.
S
Self-Proving Will – A will accompanied by an affidavit from witnesses verifying its validity, making probate faster and easier.
Separate Property – Property owned before marriage or received as a gift or inheritance during marriage, not considered community property.
Settlors – Individuals who create a trust; also known as grantors or trustors.
Special Needs Trust – A trust designed to provide for a person with disabilities without disqualifying them from government benefits.
Spendthrift Clause – A provision preventing beneficiaries from misusing or assigning their inheritance before distribution.
Successor Trustee – A person or entity designated to take over management of a trust if the original trustee can no longer serve.
Supplemental Needs Trust – Similar to a special needs trust, providing financial support for someone receiving public assistance.
T
Tangible Personal Property – Physical items such as furniture, jewelry, vehicles, or artwork, often distributed separately in a will.
Tax Basis (Step-Up) – The market value of an asset at the date of death, used to calculate capital gains for heirs.
Tenancy in Common – A form of joint ownership where each owner’s share passes to their heirs, not automatically to the other owners.
Testamentary Capacity – The legal ability to understand and execute a valid will.
Testamentary Trust – A trust created by a will, effective only after death.
Testator – The person who creates and signs a will.
Title – Legal evidence of property ownership.
Trust – A fiduciary arrangement allowing a trustee to manage assets for beneficiaries according to the grantor’s instructions.
Trustee – The individual or institution responsible for managing trust assets.
Trustor – Another term for grantor or settlor; the person creating the trust.
U
Uniform Probate Code (UPC) – A standardized set of laws designed to simplify and unify probate and estate laws across states.
Uniform Transfers to Minors Act (UTMA) – A law allowing property to be transferred to a minor under the care of a custodian until adulthood.
W
Ward – A person under guardianship, such as a minor or incapacitated adult.
Will Contest – A legal challenge to the validity of a will, often based on claims of undue influence or lack of capacity.
Witness – A person who observes the signing of a will or trust and verifies its authenticity.
Y
Year’s Support – A provision under some state laws granting a surviving spouse or minor children temporary financial support from the estate during administration.
Why Understanding Estate Planning Terms Matters
Understanding estate planning terminology empowers you to make informed decisions and avoid confusion when working with attorneys or financial planners. At Antonoplos & Associates, we specialize in drafting wills, trusts, and asset protection plans with clarity and precision. Whether you are updating an existing estate plan or starting fresh, our legal team provides expert guidance to protect your assets and honor your wishes.