Glossary

A type of trust designed to maximize estate tax exemptions for married couples. Upon the death of one spouse, the trust is divided into two parts: Trust A (the "Survivor's Trust") and Trust B (the "Bypass Trust" or “Disclaimer Trust"). Trust A is for the surviving spouse’s benefit, while Trust B is funded with an amount up to the estate tax exemption, bypassing the surviving spouse’s estate to reduce estate taxes upon their death.

A legal document that outlines a person’s healthcare wishes if they become incapacitated. It includes a living will and a medical power of attorney, specifying preferences for life-sustaining treatment and end-of-life care. 

A person appointed by the probate court to manage the estate of a deceased person who did not leave a valid will. Their duties include paying debts, managing assets, and distributing the estate according to intestacy laws.

A gift given to an heir during the lifetime of the decedent, which is considered part of their inheritance and deducted from their share of the estate upon the decedent’s death.

A secondary probate process required when a decedent owned real estate in a state different from their primary residence. This ensures legal ownership transfer across multiple jurisdictions.

The amount that a person can gift to another individual each year without triggering federal gift taxes. As of 2024, the IRS limit is $18,000 per recipient (subject to change).

A formal valuation of real estate, personal property, or business assets conducted by a licensed appraiser to determine market value for estate distribution or tax calculations.

Anything of financial value owned by an individual, including real estate, bank accounts, retirement accounts, stocks, life insurance policies, vehicles, and personal property.

A person designated under a power of attorney to act on behalf of another individual in financial or legal matters. 

An individual or entity designated to receive assets from a will, trust, life insurance policy, or retirement account upon the owner's death. 

A type of insurance purchased by an executor of a will to ensure that they carry out their duties honestly and properly, protecting the estate from mismanagement or fraud. This is required in some probate cases.

A type of irrevocable trust used in estate planning to minimize estate taxes for married couples by preserving the estate tax exemption of the first spouse to die.

A tax imposed on the profit from selling an asset, such as real estate or stocks. A "step-up in basis" at death can reduce or eliminate this tax for heirs.

A summary document that provides proof of the existence and terms of a trust without revealing the full details of the trust. It includes key information like the trust’s name, the trustee's authority, and the date the trust was created. This document is typically used when the trustee needs to manage assets, such as selling property or accessing bank accounts.

A trust that allows individuals to donate assets to charity while retaining income from those assets during their lifetime, reducing taxes and supporting philanthropic goals.

A legal document that makes amendments to a will without creating an entirely new will. It must be properly signed and witnessed to be valid.

A legal distinction in some states (such as California) where spouses equally own all assets acquired during marriage unless otherwise specified.

A court-appointed arrangement where a responsible person (conservator)manages the finances and/or personal affairs of someone who is incapacitated due to illness, disability, or age.

A person or entity that will receive assets if the primary beneficiary is unable or unwilling to do so.

A legal challenge to the validity of a will or trust, usually based on claims of lack of capacity, undue influence, fraud, or improper execution.

Debts that must be paid from an estate before beneficiaries receive their inheritance. Examples include medical bills, taxes, and outstanding loans.

A person legally appointed to manage financial accounts or assets for a minor until they reach the age of majority (typically 18 or 21, depending on state law).

A legal term referring to a person who has passed away, triggering the administration of their estate.

All property and assets left behind by a person who has died, including real estate, personal belongings, and financial assets, which will be distributed according to their will or state law.

A legal document used to transfer ownership of real property from one party to another. In estate planning, a quitclaim deed or trust transfer deed may be used to move property into a trust.

A person or entity that is named to receive real property through a will. Unlike a beneficiary, who receives personal property, a devisee receives land or real estate.

A trust that allows a beneficiary (usually the surviving spouse) to refuse or "disclaim" all or part of their inheritance. If the beneficiary disclaims the inheritance, the assets automatically go into a trust for their benefit, typically designed to minimize estate taxes or provide flexibility in how assets are distributed.

Disclaiming Inheritance is the legal process by which an heir or beneficiary refuses to accept a gift or inheritance from an estate or trust. This can be done for tax reasons or personal preference. The beneficiary disclaiming their inheritance is not able to control who receives the property instead. The terms of the Will or Trust dictate who receives the property if disclaimed.

The act of intentionally excluding a person from inheriting assets in a will or trust. In some states, certain heirs (like spouses or minor children) cannot be fully disinherited.

The process of transferring estate assets to heirs or beneficiaries, either per the terms of a will/trust or under intestacy laws.

A legal document granting someone the authority to manage financial and legal matters if the principal becomes incapacitated. Unlike a standard power of attorney, it remains effective even after incapacity.

A method of dividing assets in an estate based on fairness, rather than an exact 50/50 split. This principle is used in non-community property states.

The process by which a deceased person's property reverts to the state if no legal heirs or beneficiaries can be identified or located. This can happen when there is no valid will or trust in place.

The total collection of assets, liabilities, and personal property a person owns at the time of their death.

The process of organizing an individual’s assets, legal documents, and directives to ensure their wishes are followed upon death or incapacity.

A federal or state tax imposed on the transfer of an estate’s assets upon death. The federal estate tax exemption is $13.90 million per person in 2025 (subject to change). California does not have a state estate tax.

The individual named in a will to oversee the administration of an estate, ensuring debts are paid and assets are distributed according to the decedent’s wishes. This term is now gender neutral for both male and female representatives.

Executrix is an older term for a female executor, the person appointed in a will to carry out the testator’s wishes and administer the estate after their death. The male equivalent is Executor. Modernly, the term Executor is gender neutral

The price an asset would sell for in an open market between a willing buyer and seller, commonly used for estate tax calculations.

A person legally obligated to act in someone else’s best interests, such as an executor, trustee, or agent under a power of attorney.

The process of transferring assets into a trust to ensure they are covered by its provisions, typically involving real estate, bank accounts, and investment accounts.

A federal tax imposed on transfers of property or money exceeding the annual exemption amount. ($19,000.00 per person per year as of 2025)

The person who creates and funds a trust; also called a trustor or settlor.

A court-appointed individual who represents the interests of a minor or incapacitated person during legal proceedings, such as in probate or trust cases. They ensure that the individual's rights are protected throughout the process.

A court-appointed role for someone (Guardian) to care for a minor or incapacitated adult, making decisions about their personal, medical, and financial affairs.

A person legally entitled to inherit under intestate succession laws if no will exists.

A handwritten Will that may be valid in certain states without witnesses if it meets specific legal requirements.

A legal provision that protects a primary residence from certain creditors or reduces property taxes for homeowners.

Unable to make decisions due to physical or mental impairment. Usually determined by a medical doctor.

A tax paid by beneficiaries on assets they inherit (not applicable in California).

A trust created during a person’s lifetime, as opposed to a testamentary trust, which is established upon their death. It helps manage assets and can avoid probate.

Dying without a valid will, causing the state’s laws of intestacy to determine inheritance.

A trust that cannot be modified or revoked after it is created, often used for tax planning or asset protection.

A form of property ownership where two or more people own equal shares, with a right of survivorship.

Lapse occurs when a beneficiary in a will or trust predeceases the testator (the person who made the will). If the Will doesn’t have a provision for an alternate beneficiary, the gift may fail and "lapse."

A legal document that states who inherits assets and names an executor to oversee the estate during probate.

A court-issued document authorizing an executor to manage a decedent’s estate.

The right to use and benefit from a property for one’s lifetime, after which ownership transfers to another party. Often used to grant a person the right to live in your home for the rest of their life and then the property is distributed to your beneficiaries.

An irrevocable trust used to hold life insurance policies for estate planning benefits.

A revocable trust created during a person’s lifetime to manage assets, avoid probate and control distribution after death.

A Living Will is a legal document that outlines a person’s medical treatment preferences in case they become incapacitated and unable to communicate their wishes. It is included in an Advance Health Care Directive.

A tax provision allowing unlimited transfers between spouses without estate tax consequences.

Strategies to legally protect assets while ensuring eligibility for long-term care benefits under Medicaid.

A person under 18 years old, who typically requires a guardian or trustee to manage inherited assets.

A provision in a will or trust that penalizes beneficiaries who challenge the document. If a beneficiary contests and loses, they may be disinherited or receive only a minimal inheritance. This clause is intended to deter frivolous or disruptive lawsuits.

A legal notice informing financial institutions, beneficiaries, and relevant parties of a decedent’s passing.

A financial account that transfers directly to a named beneficiary upon the owner’s death, avoiding probate.

A method of dividing an estate equally among surviving descendants at a specific level of relationship. Also called Right of Survivorship.

A method of inheritance where a deceased beneficiary’s share passes to their descendants. Also called Right of Representation.

A general term for someone managing an estate, including an executor or administrator.

Allows heirs of estates with primary residences valued under $750,000 to utilize streamlined procedures to clear transfer of title while avoiding the complexities of formal probate. *Note a probate may be still be necessary for investment property or other assets totaling over $184,500.00 in combined value.

A will designed to transfer any remaining assets into a trust upon the testator’s death.

A legal document granting authority to another person to act on financial, legal, or healthcare matters. A Durable Power of Attorney has no expiration date unless it is revoked.

A child or other heir unintentionally omitted from a will, who may possibly entitled to inherit by default.

A spouse who was unintentionally left out of a will, often because the will was created before the marriage took place. In many cases, the pretermitted spouse may be entitled to inherit a portion of the estate by default under state law, even if the will does not mention them.

The court-supervised process of validating a will, paying debts, and distributing assets. It can take months or years to complete.

The specialized court handling probate estates, wills, guardianships, and conservatorships.

A specialized trust designed to allow a non-U.S. citizen spouse to qualify for the marital deduction, postponing estate taxes until assets are distributed from the trust. A QDOT ensures that a surviving spouse who is not a U.S. citizen can receive income and support from the trust while complying with IRS tax regulations.

A trust allowing a surviving spouse to receive income while preserving principal for heirs.

Land and any permanent structures attached to it, such as homes or buildings.

A person or entity designated to receive the remaining assets of a trust or estate after all prior beneficiaries, such as life tenants, have received their share.

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

A trust that can be modified or revoked by the trustor (creator) during their lifetime.

A legal right ensuring property passes to a co-owner upon the other owner’s death.

Another term for trustor—the person who establishes a trust.

A provision in a will or trust that specifies what happens if two or more beneficiaries die at the same time, such as in an accident. This clause helps prevent confusion over who inherits.

A legal document used to transfer assets from a deceased person's estate without going through the full probate process. In California, this process is available if the deceased person's estate is valued at $184,500.00 or less. It allows an individual, usually a family member or other beneficiary, to claim the deceased person’s property, such as bank accounts, personal property, or real estate, by submitting an affidavit instead of going through probate court procedures.

A trust designed to provide financial support for a disabled individual without jeopardizing government benefits.

A trust provision protecting beneficiaries from creditors and irresponsible spending.

Spousal Property Petition is a legal request filed in probate court by a surviving spouse to confirm their rights to certain property that was jointly owned with the deceased spouse.

A trust established for the benefit of a surviving spouse. It allows the spouse to receive income or access to the trust’s assets during their lifetime, with the remaining assets going to other beneficiaries after their death. It can provide tax advantages and protect the spouse’s inheritance.

The legal rights that heirs or beneficiaries have to inherit assets from a decedent's estate or trust under specific conditions, such as when no will or trust is in place.

The person designated to take over management of a trust after the original trustee dies or becomes incapacitated.

A type of special needs trust providing extra support for disabled individuals.

A provision in a will, trust, or other estate planning document that specifies the conditions under which a beneficiary must survive the decedent by a certain period (often 30, 60, or 120 days) in order to inherit their share of the estate. If the beneficiary does not survive for the required time, their share is typically redistributed to other beneficiaries or heirs.

A person’s mental ability to make a valid will. To be considered legally competent to create a will, the individual must understand the nature of the act and the consequences of distributing their estate.

The intention of the testator (person making the will) when creating a will or trust. Courts look to this intent when interpreting the terms of the document if there is any ambiguity or confusion in the language of the document.

A trust created through a person's Will, taking effect only after their death. It allows the deceased to control how their assets are distributed and managed by a trustee after they pass. This still requires probate administration.

Dying with a valid will.

The person who makes a will.

A legal arrangement where one party (trustee) holds and manages assets for the benefit of another (beneficiary).

The process of managing and distributing trust assets according to its terms after the trustor's death.

A legal challenge to the validity of a trust, typically brought by a beneficiary or interested party who believes the trust was created or modified due to fraud, undue influence, lack of capacity, or improper execution. A trust contest must be filed in court within a specific statute of limitations, and the person contesting the trust must provide legal grounds and evidence to support their claim. Successful trust contests can lead to the trust being modified or invalidated.

The property or assets that are held within a trust. It is the foundation upon which a trust is built and from which distributions are made to beneficiaries.

A third-party individual or entity appointed to oversee the trustee's actions and ensure that the trust is administered according to the grantor’s wishes. They have the power to modify or remove trustees, amend trust provisions, and resolve disputes.

The individual or institution responsible for managing a trust’s assetsaccording to its terms.

The authority granted to a trustee in managing a trust, including making decisions about the distribution of assets, investments, and handling administrative duties in accordance with the trust terms.

The creator of a trust, also known as the grantor or settlor.

A legal document that states who inherits assets and names an executor to oversee the estate during probate.

A legal challenge to the validity of a will.