Legal Definitions
Know the legal terms associated with estate planning and probate so you better understand what’s happening around you.
ABLE Accounts – A tax-advantaged savings account for individuals with disabilities to maintain eligibility for certain benefits while saving for qualified expenses.
Administration – The process of managing and distributing the estate of a deceased person according to their will or state law.
Administrator – A person appointed by the court to manage and distribute the estate of a decedent who died without a will.
Advance Directive – A legal document expressing a person’s wishes about end-of-life medical care.
Agent for Remains – A legal document appointing someone to make decisions about the disposition of one’s body after death.
Beneficiary – A person or entity designated to receive assets from a will, trust, or insurance policy.
Beneficiary Designation – A legal designation of who will receive assets from accounts like life insurance, retirement accounts, etc., upon the account holder’s death.
Codicil – A formal, written amendment to a will.
Conservatorship – A legal guardianship granted by a court to manage the financial affairs and/or personal care of an incapacitated adult.
Corporate Formation (LLC) – The legal process of establishing a limited liability company (LLC) to protect personal assets and define ownership and management structure.
Creditor – An individual or institution to whom money is owed.
Decedent – The person who has died, whose estate is being managed and distributed.
Declaration of Guardian – A legal document specifying who will assume guardianship of a minor or incapacitated adult in the event of the declarant’s death or incapacity.
Durable Power of Attorney – A legal document granting someone authority to make decisions on your behalf if you become incapacitated.
Elder Guardianship – A court-appointed guardianship for seniors unable to care for themselves or manage their affairs due to incapacity.
Estate – All the assets and liabilities left by a person at death.
Estate Tax – A tax levied on an estate based on its value at the time of the decedent’s death.
Executor – The person appointed in a will to manage the decedent’s estate, ensuring that assets are distributed according to the will’s instructions.
Family Limited Partnership – A business entities that allow families to pool assets while maintaining control and reducing estate taxes.
Grantor – The person who creates a trust and transfers assets into it.
Guardianship – A legal arrangement where a person is appointed to care for another person, particularly a minor or an incapacitated adult.
Guardianship for Minor Heirs – Court-ordered management of assets inherited by minors until they reach legal adulthood.
Heir – A person legally entitled to inherit property from a decedent under state intestate succession laws.
HIPAA Authorization – A legal document allowing healthcare providers to share an individual’s protected health information with specified persons or entities.
Income Beneficiary – A beneficiary entitled to receive income generated by the trust assets.
Independent Executor – An executor named in a will who administers the estate without court supervision, subject to state law.
Inheritance Tax – A tax imposed on individuals who inherit assets from a decedent.
Intestate – Dying without a legal will, resulting in the estate being distributed according to state laws.
Irrevocable Trust – A trust that cannot be modified or revoked once established, offering greater asset protection and tax benefits.
Letter of Intent – A non-binding document outlining wishes and instructions for beneficiaries and heirs, often used in conjunction with a will or trust.
Letter of Testamentary – A document issued by the probate court that authorizes the executor to administer the decedent’s estate.
Lifetime Asset Protection Trust – An irrevocable trust designed to shield assets from creditors and ensure distribution according to the grantor’s wishes during their lifetime.
Living Will – A document specifying a person’s wishes regarding medical treatment if they become incapacitated.
Medical Power of Attorney – A legal document designating someone to make healthcare decisions on your behalf if you are unable to do so.
Muniment of Title – A legal proceeding to admit a will to probate when there are no debts other than liens on real estate, bypassing formal estate administration.
Probate – The legal process of validating a will, paying debts, and distributing the decedent’s assets.
Revocable Living Trust – A trust that can be altered or revoked by the grantor during their lifetime.
Small Estate Affidavit – A simplified probate process for estates below a certain value, allowing heirs to claim assets without formal administration.
Special Needs Guardianship – A court-appointed guardianship for individuals with disabilities requiring ongoing care and support.
Special Needs Trust – A trust designed to provide supplemental support for individuals with disabilities without jeopardizing their eligibility for government benefits.
Testamentary Capacity – The legal capacity of a person to make a valid will, meaning they must understand the nature of their assets, the distribution of those assets, and the legal consequences of creating a will.
Testate – Dying with a valid will, specifying how the estate should be distributed.
Testator (Testatrix) – A person who makes a valid will or testament.
Trust – A legal arrangement where one party (trustee) holds and manages property for the benefit of another (beneficiary).
Trustee – The person or entity responsible for managing a trust in accordance with its terms.
Will – A legal document outlining how a person’s assets should be distributed after their death.
Witness – An individual who signs a will to confirm that the testator was of sound mind and not under undue influence at the time of signing, ensuring the validity of the document in probate court.
