Estate Planning Definitions

Estate Tax: 

A tax levied on the transfer of a deceased person's estate to their heirs. 

Executor: 

The individual named in a will who is responsible for carrying out the instructions of the will and managing the estate through the probate process.

Grantor / Trustor / Settlor:

Interchangeable terms for the individual(s) who create a trust and transfer assets into it.

Guardian: 

An individual appointed to care for and make decisions for a minor child or incapacitated adult.

Health Care Power of Attorney: 

A document naming someone to make medical decisions on your behalf if you are unable to do so (called “Health Care Proxy” in some states).

Heir: 

A person who is legally entitled to inherit assets from a deceased person, usually under state law when there is no will.

HIPAA Authorization: 

A document that gives certain people access to one’s medical records.

Intestate: 

The condition of dying without a valid will, in which case state law determines how assets are distributed.

Irrevocable Trust:

A trust that cannot be changed or terminated after it is created without the consent of the beneficiaries.

Joint Tenancy With Rights of Survivorship:

A form of ownership in which two or more people own property together, and upon the death of one owner, the property passes automatically to the surviving owners.

Letters Testamentary:

Legal documents issued by the court giving the executor authority to manage and distribute the estate.

Personal Representative: 

The person appointed by the court to administer the estate of someone who has died, also known as an executor or administrator.

Pour-Over Will: 

A type of will that directs any remaining assets to be transferred into a trust upon the death of the testator.

Power of Attorney:

A legal document that authorizes someone else to act on your behalf in financial or legal matters if you become unable to do so.

Principal: 

The person executing a document.

Probate: 

The legal process of validating a will and distributing a deceased person's assets under court supervision.

Residue: 

The portion of an estate remaining after all debts, taxes, and specific bequests have been distributed.

Revocable Trust:

A trust that can be altered or terminated by the person who created it during their lifetime.

Successor Trustee: 

A person named to become a trustee when the initial or previous trustee(s) are unable or unwilling to act.

Testator / Testatrix:

The person who creates and signs a will.

Trust: 

An arrangement where a trustee manages assets on behalf of beneficiaries according to the terms set by the person who creates the trust.

Trust Amendment:

A legal document used to make specific changes to an existing trust without completely rewriting it.

Trust Restatement: 

A legal document that replaces the original trust with a new version, incorporating all changes, while retaining the same name and date of the original trust. Trustee: The person or institution appointed to manage assets held in a trust for the benefit of the beneficiaries.

Ward: 

An individual—often a minor or an incapacitated adult—who is placed under the care and protection of a guardian by a court.

Will: 

A legal document that specifies how your assets will be distributed and who will care for any minor children after your death.