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A-B Trusts
A planning technique used by a married couple to defer estate taxes to the second death and to reduce the overall burden of estate taxes. When the first spouse dies, the trust splits into a “survivor’s” portion (Trust A) and a “decedent’s” or “bypass” portion (Trust B). The surviving spouse may receive the assets in the “A” trust outright, or in any event the trust will qualify for the estate tax marital deduction., The surviving spouse may also be a beneficiary of the “B” trust, but her interest in that trust will not be such as would qualify the trust for an estate tax marital deduction. When the surviving spouse dies, the remainder of both trusts will be distributed to or held in further trust for children and grandchildren, free of any further estate or inheritance tax, while the “A” trust is included in the surviving spouse’s estate for tax purposes.
Abate
To reduce, lessen, or diminish. In legal terms, it often refers to the cessation or suspension of a lawsuit.
Abatement
A reduction in the amount owed or an end to a legal proceeding. It can also refer to the reduction of a bequest if the estate assets are insufficient to cover all debts and bequests.
Abstract of Judgment
A summary of a court judgment that creates a lien against a debtor’s property when filed with a county recorder.
Accounting
A detailed financial report that includes all income, expenses, and distributions related to an estate or trust.
Ad Litem
A Latin term meaning “for the suit.” It refers to a person appointed by the court to represent someone, often a minor or an incapacitated person, in a legal proceeding.
Ademption
The effective revocation of a specific bequest by the testator disposing of the subject property during life. Specific bequests can be adeemed, while demonstrative and general bequests cannot.
Administrator
A person assigned by a probate court to manage an estate in the absence of a will; when no executor has been designated; or when the intended executor cannot or will not perform their duties.
Administrator with Will Annexed
A person appointed by the court to administer an estate where the executor named in the will cannot or will not serve.
Administration
The process in which an estate executor or administrator collects a decedent’s assets, pays any remaining debts or claims, and follows the will or state intestacy laws (in the absence of a will) to distribute the remaining estate assets to the legatees or heirs.
Advance directive
Also called a living will, this document details your wishes for medical care should you become incapacitated and cannot communicate those wishes. It includes stipulations such as when — or if — resuscitation or life support should be used to prolong your life. A living will should be attached to your estate plan and be easily accessible, because if you suffer from a terminal illness or life-threatening injury, doctors and hospitals consult your living will to determine your desires. If you’ve ever had surgery that involves anesthesia, a health care professional has probably asked if you have an advance directive.
Adverse Possession
A legal doctrine that allows a person to claim ownership of land under certain conditions, including continuous and hostile possession over a statutory period.
Affiant
A person who makes a sworn statement in writing (an affidavit).
Affidavit
A written statement made under oath before a notary or other authorized officer.
Age of majority
The age at which one is legally recognized as an adult with legal capacity to enter into binding contractual arrangements. In most U.S. states, this is 18, but in some it is 19 or 21.
Amended
A document that has been modified or revised, typically referring to pleadings or legal filings.
Amendment
A formal change or addition to a legal document, such as a will or a contract.
Ancillary Administration
A secondary probate proceeding conducted in a different jurisdiction from where the decedent was domiciled, necessary for administering property located in that jurisdiction.
Annexed
Attached or added, typically referring to documents appended to legal filings.
Annual exclusion
The amount of money or property one person can give to another each calendar year without reducing the applicable exclusion amount. The annual exclusion applies only to gifts of “present,” not “future” interests. If no other gifts are made during the calendar year, gifts qualifying for the annual exclusion need not be reported to IRS on a gift tax return.
Annuitant
A person who receives regular payments from an annuity.
Appearance
The act of showing up in court, either in person or through an attorney, as part of a legal proceeding.
Applicable exclusion amount
The aggregate amount that an individual can transfer, during life and at death, before incurring gift or estate taxes. Also called the “estate tax exemption amount” or the “unified credit equivalent.” Annual exclusion gifts do not count toward this total.
Ascertainable standard
Criteria that sufficiently limit the trustee’s discretion in making distributions to trust beneficiaries that the trustee will not be treated for gift and estate tax purposes as holding a “general” power of appointment. A limitation on the trustee’s discretion to make distributions for a beneficiary’s health, education, support, or maintenance is considered “ascertainable,” whereas discretion to distribute for a beneficiary’s “comfort” is not.
Assets
Anything of value owned by a person, including property, investments, and cash.
Attestation
The act of witnessing the signing of a document and signing it as a witness.
Attestation Clause
A statement at the end of a document indicating that the witnesses observed the signing and that the signer appeared to do so willingly and knowingly.
Attorney-in-Fact
The person authorized, through a written power of attorney, to handle the medical and/or financial affairs of another. The authorized person need not be licensed to practice law.
Beneficiary
A person named in a will or trust instrument to receive distributions of income or property. The term also applies to someone who is named as the recipient of life insurance proceeds or retirement plan benefits
Bequeath
To leave personal property to someone in a will.
Bequest
A gift of money or property to an individual or organization under the terms of a decedent’s will.
Blocked Accounts
Accounts that require court approval for any withdrawals, typically used in guardianships or conservatorships.
Bond
A financial guarantee that a person will perform certain duties, often required of administrators or executors in probate.
Brief
A written statement submitted to a court outlining the legal arguments in support of a case.
Buy-sell agreement
A legal contract that, in businesses with multiple owners, stipulates terms for remaining owners to purchase the interest of an owner who is withdrawing or deceased.
Bypass trust
The “B” portion of an A-B trust. The B, or “bypass” portion of the trust, is sheltered from the federal estate tax by the decedent’s estate tax exclusion amount.
Capacity
The legal ability to enter into a contract, make a will, or carry out other legal actions.
Case Management Conference
A court meeting where the judge and parties discuss how to manage and proceed with a case.
Certified Copy
An official copy of a document that has been certified as a true copy by the custodian of the original document.
Change of Venue
The transfer of a legal case from one jurisdiction to another.
Charitable gift annuity
A contract that provides one or two beneficiaries with fixed income for life in exchange for a contribution to the nonprofit issuer. The gift can be made with cash, securities, or assets, depending on the nonprofit’s gift acceptance policies..
Charitable lead trust
An irrevocable trust that pays income to a charity or charities for a set period of time. At the end of that time, the remaining assets are distributed to the donor or other beneficiaries. To qualify the lead interest for an income tax charitable deduction, the “income” interest must be defined as a fixed annuity or unitrust amount.
Charitable remainder trust
A tax-exempt, irrevocable trust that pays income to the settlor and/or other beneficiaries for a set term—either life, or a specified number of years. At the end of the term, the trust remainder is distributed to one or more designated charities. To qualify the remainder interest for an income tax, gift tax, or estate tax charitable deduction, the “income” interest must be defined as a fixed annuity or unitrust amount, though a unitrust payout may be subject to a net income exception.
Chattel
Personal property that is movable, as opposed to real estate.
Citation
A court order requiring a person to appear in court or respond to a legal action.
Codicil
A document that amends, rather than replaces, a previously executed will. Amendments made by a codicil may add or revoke or revise one or more provisions (e.g., changing executors, altering the terms of a bequest, etc.), or it may completely change the majority or all of the gifts under the will. Each codicil must conform to the same legal requirements as apply to the execution of wills, such as the signatures of the testator and, typically, two or three (depending on the jurisdiction) disinterested witnesses.
Commissioner
A person appointed by the court to perform certain duties, often similar to those of a judge, but usually limited to specific cases or issues.
Community property
In some states, a form of property ownership under which property acquired during a marriage is considered to be jointly owned by the spouses.
Confidential Record
A legal document or file that is not open to the public and requires a court order to access.
Conflict of Interest
A situation in which a person has competing interests or loyalties that could affect their judgment or actions.
Consent for Medical Treatment
Legal permission given by a person or their representative for medical procedures or care.
Conservatee
A person who is unable to manage their own affairs and for whom a conservator has been appointed.
Conservator
An individual or entity appointed by the courts to care for and manage the property of someone who is incapacitated.
Conservatorship
A court proceeding in which a judge appoints a conservator to manage the personal care or financial affairs of a conservatee.
Conservatorship Estate
The assets and property managed by a conservator on behalf of a conservatee.
Contempt of Court
An act of disobedience or disrespect toward the court, which can result in penalties.
Contestant
A person who challenges the validity of a will or other legal document.
Contested
Refers to a legal issue that is disputed or challenged in court.
Contingent Beneficiary
A person or entity that will receive benefits only if certain conditions are met or if the primary beneficiary is unable or unwilling to accept the benefits.
Coogan Law
A law that requires a portion of a child actor’s earnings to be set aside in a trust account until they reach adulthood.
Costs
Expenses incurred in the course of litigation, which may be recoverable by the prevailing party.
Court Investigator
A person appointed by the court to investigate and report on matters such as conservatorships, guardianships, or adoptions.
Creditor
A person or entity to whom money is owed by another.
Creditor’s Claim
A demand for payment filed by a creditor against a deceased person’s estate.
Credit shelter trust
Yet another name for the “B” or “bypass” trust in an A-B trust arrangement.
“Crummey” withdrawal right
A provision in an irrevocable trust that allows a trust beneficiary to withdraw all, or some, of the assets contributed to the trust for a certain period of time after the contribution. Because the assets may be withdrawn, the contribution is treated as a “present interest” gift, qualifying for the gift tax annual exclusion. Usually the unstated plan is for the beneficiary to allow the withdrawal right to lapse, and the power is structured in such a way that that lapse will not be treated as the release of a general power of appointment, that is, as a gift by the beneficiary.
Decedent
Someone who has died.
Decision
The judgment or ruling made by a court.
Declaration
A written statement made under penalty of perjury.
Decree
An official order or decision issued by a court.
Deed
A legal document that conveys ownership of real property
Demonstrative Bequest
A bequest to be funded from a specified source, such as a bank or brokerage account. If the specified source no longer exists, for example the account has been closed , the demonstrative bequest is not adeemed, but becomes a general bequest.
Demurrer
A legal objection that a pleading (such as a complaint) is insufficient to warrant a response.
Dependent
A person who relies on another, typically a parent or guardian, for financial support.
Descendants
Relatives by blood, or by legal adoption, who are “descended” from a decedent, including children, grandchildren, great-grandchildren, etc. Grandparents, parents, siblings, spouses, and cousins and other collateral relatives are not descendants, though they may be heirs. A stepchild will be a descendant only if she has been formally adopted by the decedent.
Developmental Disability
A condition that impairs physical, learning, language, or behavior areas, typically manifested before adulthood.
Devise
A gift of real property made through a will.
Devisee
A person or entity who receives real property through a will.
Directive to Physician
A legal document that specifies a person’s wishes regarding medical treatment in the event they become incapacitated.
Disbursements
Payments made from an estate or trust for expenses, taxes, or distributions to beneficiaries.
Discharge
The release of an executor, administrator, or trustee from their duties after the estate or trust has been fully administered.
Disclaimer
A legal refusal to accept an inheritance or gift under a will or trust.
Distributee
A person entitled to receive a share of an estate’s distribution.
Domicile
The legal residence of a person, which determines jurisdiction for legal matters.
Donee
A person who receives a gift.
Donor
A person who makes a gift.
Durable Power of Attorney
A power of attorney (see definition below) that enables someone to handle your affairs if you become mentally incapable.
Durable Power of Attorney for Healthcare
A legal document that grants someone authority to make healthcare decisions on behalf of another if they become incapacitated.
Elective Share
A portion of a deceased spouse’s estate that the surviving spouse may claim, regardless of the will’s terms.
Elisor
A person appointed by the court to perform duties when a sheriff or other officer is unable to do so.
Encumbrance
A claim or lien on property, such as a mortgage or easement.
Equity
The value of an owner’s interest in property after all debts and liabilities are subtracted.
Errata
A list of corrections to errors found in a document.
Escheat
The transfer of a deceased person’s estate to the state when there are no legal heirs.
Escrow
A legal arrangement where a third party temporarily holds money or property until a particular condition has been met.
Estate
Everything that makes up your net worth — real estate, personal possessions, business interests, financial assets — essentially, everything of value that you own, minus any liabilities (such as remaining mortgage payments, credit card debt, loans, unpaid taxes, etc.).
Estate planning
The process by which a person decides on a strategy and creates a will, trust, and/or other legal agreement to provide for the administration and disposition of their assets if they become incapacitated, or upon their death
Estate tax
The “final tax,” which is levied against your transferred assets at death. There are both federal and state estate or inheritance taxes to consider.
Estate tax exemption amount
The aggregate amount that an individual can transfer, during life and at death, before incurring gift or estate taxes. Also called the “applicable exclusion amount” or the “unified credit equivalent.” Annual exclusion gifts do not count toward this total.
Ex Parte
A legal proceeding or motion brought by one party without notice to or presence of the other party.
Executor/executrix
The person appointed under a decedent’s will to administer his or her estate. An “executor” is male; an “executrix” is female.
Exemplification
An official copy of a legal document, certified as a true and accurate copy by the issuing authority.
Exhibit
A document or object presented as evidence during a trial or hearing.
Expenses of Administration
Costs incurred in the management and settlement of an estate.
Fair Market Value
The price at which property would sell on the open market between a willing buyer and a willing seller.
Fiduciary
A person who has a legal duty to act in the best interests of another, such as a trustee or executor.
Fiduciary Duty
The legal obligation to act in the best interest of another party.
Finding
A determination or conclusion reached by a judge or jury based on the evidence presented.
Genealogy
The study or tracing of family descent or lineage, often used in legal contexts to establish heirship.
General Administrator
A person appointed by the court to administer an estate without a will or when no executor is named or available.
General Bequest
A bequest of a specified dollar amount, to be satisfied in cash.
Inheritance: The receipt of money or property from a decedent’s estate in the absence of a valid will, by virtue of a biological relationship to the decedent.
Grantor
A person who creates a trust or transfers property to another.
Guardian
A person appointed by the court to care for and manage the personal and/or financial affairs of a minor or incapacitated person.
Guardian Ad Litem
A person appointed by the court to represent the best interests of a minor or incapacitated person in legal proceedings.
Guardianship
The legal process by which a guardian is appointed to manage the affairs of a minor or incapacitated person.
Health-Care Proxy
Also called a health-care power of attorney. The designated person is authorized to make medical decisions on your behalf if you are unable to communicate those decisions yourself. A health-care proxy consults with a health care professional on decisions not covered in a living will.
Heir
A person who is designated under state intestacy laws to inherit property from a decedent.
Holographic Will
A will entirely handwritten and signed by the testator, which may be recognized as valid without witnesses in certain jurisdictions.
Illiquid Assets
Any noncash assets that cannot be easily sold.
In Forma Pauperis
A legal status allowing a person to proceed with a lawsuit without paying court fees due to financial hardship.
In Propria Persona (In Pro Per)
Representing oneself in a legal proceeding without an attorney.
Incapacity
The legal inability to manage one’s own affairs due to mental or physical impairment.
Inheritance Tax
A tax imposed on individuals who inherit property or assets from a deceased person.
Inter Vivos Trust
A trust created and funded during the grantor’s lifetime.
Interlineation
The act of writing between the lines of a document, typically to add or modify content.
Intestate
The condition of having died without a valid will
Inventory
A list of all the assets and property belonging to a decedent or a trust that is filed with the court.
Irrevocable Gift
A gift that cannot be changed or revoked.
Irrevocable Insurance Trust
A trust designed to exclude insurance policy proceeds from a decedent’s gross estate. It cannot be modified or revoked.
Irrevocable Living Trust
A trust that cannot be modified or terminated by the grantor once it has been established.
Irrevocable Trust
A trust that cannot be modified or revoked by the settlor.
Issue
All direct descendants of a person, including children, grandchildren, and more remote descendants.
Joinder
The joining of two or more legal issues or parties in a single lawsuit.
Joint Tenancy With Right of Survivorship
An arrangement in which two or more people own equal portions of an entire asset. When one of the owners dies, their share passes to the other joint tenants.
Judgment
The official decision or ruling by a court in a legal case.
Judicial Council
The administrative body responsible for overseeing the court system, often involved in creating rules and forms used in court proceedings.
Judicial Council Forms
Standardized legal forms created by the Judicial Council for use in court proceedings.
Judicial Officer
A judge or other official who presides over court proceedings.
Jurisdiction
The legal authority of a court to hear and decide a case, based on geographic area, subject matter, or parties involved.
Kindred
Persons related by blood; a person’s family and relatives.
Lapse
The failure of a gift in a will because the beneficiary dies before the testator or other specified condition is not met.
Last Will and Testament
A legal document expressing a person’s wishes regarding the distribution of their property after death.
Legacy
Legatee
A person who receives a legacy or bequest under a will.
Letters
Official court documents that authorize a person to act on behalf of an estate, such as “Letters Testamentary” for executors or “Letters of Administration” for administrators.
Life Beneficiary
Someone who receives income or principal, for their lifetime, from a trust, annuity, or similar arrangement.
Life Estate
The rights of a Life Beneficiary to use a property for their lifetime, after which the title passes to the person or entity, such as a nonprofit, named as the owner when the life estate ends.
Limited Conservatorship
A conservatorship that is limited in scope, often tailored to meet the specific needs of an individual with a developmental disability.
Living trust
More technically called a “revocable” trust. A legal arrangement in which a designated person, called a trustee, is given responsibility for managing your assets for the benefit of your beneficiaries, during your life and after your death. The difference between a will and a living trust is that the trust bypasses probate, allowing the trustee to carry out your instructions as documented in your living trust at your death or if you become unable to manage your financial, healthcare, and legal affairs — for instance, in the case of a debilitating illness.
Living Will
A document that details your final wishes and further explains the distribution of your will. It can also contain any final messages to family and friends While not a legal document, a letter of instruction can make the executor’s job easier by explaining your wishes in non-legal language.
Living Will
See “advance directive.”
Lodgment
The act of filing or submitting documents with the court.
LPS Conservatorship
A conservatorship established under the Lanterman-Petris-Short Act, typically for individuals with severe mental illness who are unable to care for themselves.
Marital Deduction
A federal estate and gift tax deduction that allows for the unlimited transfer of assets from one spouse to the other, without incurring gift or estate tax. The transferred assets will, however, be included in the taxable estate of the recipient spouse.
Marital Trust
An irrevocable trust that allows for the tax-deferred transfer of assets to a surviving spouse. Also the “A” portion of an A-B Trust , created to benefit the surviving spouse. See also QTIP Trust
Minor, or Minor Child
A child who has not reached the Age of Majority as defined by state law in his or her state of residence.
Motion
A formal request made to the court for an order or ruling on a specific legal matter.
Motion in Limine
A pretrial motion requesting that certain evidence be excluded from the trial.
Net Estate
The value of an estate after all debts, expenses, and taxes have been paid.
Next of Kin
The closest living relatives of a person, often used to determine who inherits when there is no will.
Non-Cash Asset
Stocks, bonds, real property, and other tangible or intangible property that may be included in a bequest, but are not simple cash transfers.
Nonprofit
An organization that exists for purposes other than generating profit, and which does not distribute income or assets to shareholders, members, directors, or officers. Typically used to refer to a tax-exempt charity, and included in numerous sections of the federal Tax Code, including Section 501(c)(3) (public charities, charitable nonprofits, and private foundations),
Section 501(c)(4) (social welfare organizations, homeowners associations, and volunteer fire companies), Section 501(c)(5) (includes labor unions), Section 501(c)(6) (includes chambers of commerce), and Section 501(k) (child-care organizations).
Non-Probate Transfer Vehicle
A mechanism for transferring ownership of money or property at death without the necessity of opening a probate estate. Examples include transfer on death designations on bank or brokerage accounts, beneficiary designations on insurance policies or qualified plans, and joint tenancies with right of survivorship.
Non-Resident Alien
Someone who does not reside in, and is not a citizen of, the United States.
No-Contest or In Terrorem Clause
A provision in a will or trust instrument that would revoke a gift if the beneficiary were to challenge the validity of the instrument.
Notice
Formal notification to a party involved in a legal proceeding, informing them of actions or decisions affecting their rights.
Nunc Pro Tunc
A Latin term meaning “now for then,” used to indicate that a court order or judgment is to be retroactively applied.
Nuncupative
An oral will, typically made by a person who is near death, which is only valid in certain circumstances and jurisdictions.
Operation of Law
The manner in which some assets are distributed at death, based on state law or asset ownership, rather than the terms of a will or trust.
Order to Show Cause
A court order requiring a person to appear and explain why the court should not take a proposed action.
Payable-on-death designation
A designation that names a successor to ownership of a bank account at the primary account holder’s death. Sometimes called a Totten Trust.
Pecuniary
Relating to money; a financial amount.
Per Capita
A manner of distributing assets equally among members of a designated class, for example “descendants,”, regardless of how closely related they might be to the decedent. Compare “per stirpes.”
Percentage or Fractional Bequest
A bequest under a decedent’s will or revocable trust expressed in terms of a percentage or fraction of the residue, rather than as a dollar amount. A transferor who is worried about possible fluctuations in the value of his or her estate might choose to make a percentage bequest to a particular beneficiary, rather than a general bequest.
Personal Effects
Items of personal use or significance, such as clothing, jewelry, and other personal belongings.
Personal Property
Movable property that is not real estate, such as vehicles, furniture, and other possessions.
Personal representative
The administrator or executor of a decedent’s estate.
Per Stirpes
A manner of distributing assets according to a family tree. Each “branch” (children, grandchildren, etc.,) receives the same proportion of the total assets, regardless of how many members are in each branch, and each share is further subdivided at each generation among descendants in each branch. The term is from a Latin phrase that means “per branch.” Compare “per capita.”
Petition
A formal written request submitted to the court seeking specific relief or action.
Petitioner
A person who files a petition with the court.
Planned Gift
A charitable gift that requires the participation of legal and/or financial planners to execute. Typically these involve larger amounts, and typically the benefit to charity takes effect at the transferor’s death. Examples include a charitable bequest under the transferor’s will or revocable trust, a charitable gift annuity, and a charitable remainder trust. Each of these allows the donor to continue to receive income from the transferred property during life.
Planned Gift Notification
The official heads-up to a nonprofit that a donor’s planned gift is coming to the organization. These notifications may not immediately include the exact value of the bequest, or other planned gift.
Pleadings
The written statements of the parties in a lawsuit outlining their claims, defenses, and other legal positions.
Points and Authorities
A legal document submitted to the court that outlines the legal arguments and cites the relevant statutes or case law.
Pour Over Will
A Will that includes a provision that any assets that may not already have been transferred to the decedent’s revocable trust during life are to be distributed to that trust.
Power of appointment
A power granted in a will or trust giving the holder power to designate someone other than the “default”beneficiary to receive specified assets. The terms of the power may be general, allowing the assets to be distributed to anyone, including the holder; or more limited. The power need not be exercised. The idea is that in the future, the power holder may be in a better position to determine who should receive those assets. , or whether distribution should be outright or in further trust.
Power of Attorney
A legal document that grants one person, called the agent or attorney-in-fact, the power to act for another. The power of attorney grants limited or broad legal authority to an appointed agent to make legally binding decisions about property, finances or (in the case of an advanced directive) medical care. A power of attorney is used if someone is unable, through illness or disability, to make those decisions for himself or herself, or cannot be present to sign legal documents.
Prayer
The section of a legal pleading that specifies the relief or remedy sought from the court.
Predeceased Spouse
A spouse who has died before the other spouse.
Pretermitted Heir
A child or other descendant who was not mentioned in a will, often because they were born or adopted after the will was made.
Principal
Assets held in a trust and used, according to the trust’s terms, for the benefit of the trust’s beneficiaries. The term is used to distinguish from “income.”
Private trust company
Another term for a family trust company : A vehicle used by high-net-worth families for their estate- and trust-planning needs.
Pro Tempore
A Latin term meaning “for the time being,” often referring to a temporary judge or official.
Probate
The legal process of determining whether a purported will is valid. Also, the administration of a decedent’s estate.
Probate Estate
The portion of a decedent’s estate that is subject to probate proceedings.
Probate Examiner
A court official who reviews probate filings to ensure they comply with legal requirements.
Probate Referee
A court-appointed appraiser who values estate assets during probate.
Probate Tax
A tax imposed in some states on property that passes under a decedent’s will or by a state’s intestacy law.
Proof of Service
A document filed with the court that shows that legal papers have been properly delivered to the relevant parties.
Property
Anything that can be owned, including real estate, assets, intellectual property, rights, interests, and more.
Prudent Investor Act
A “uniform” law enacted in many states that requires fiduciaries to invest assets they hold in trust in the beneficiaries’ best interests.
Public Administrator
A government official responsible for administering the estates of deceased persons when there is no will or no one else is available to act.
Public Guardian (Public Conservator)
A government official appointed to manage the affairs of a person who cannot do so themselves, often due to incapacity.
Public Record
Documents or information that is filed with a government office and available for public inspection.
Qualified Charitable Distribution
A provision in the federal tax Code allows a participant in a traditional IRA who is aged 70½ years or older to donate up to $100,000 per year directly from a taxable IRA to one or more qualified charities, rather than taking a taxable required minimum distribution. Because the QCD is not treated as income to the participant, there is no income tax charitable deduction.
Qualified Domestic Trust
A trust that allows assets passing to a surviving, non-U.S. citizen spouse to qualify for the estate tax marital deduction.
Qualified Personal Residence Trust
An irrevocable trust that passes title to a portion or all of the settlor’s residence to designated beneficiaries after a fixed term of years. If the settlor survives the term and continues to occupy the premises, he or she would pay fair market rent to the remainder beneficiaries The purpose of the arrangement is to discount the value of the remainder gift for gift tax purposes.
Qualified Terminable Interest Property Trust
A trust that qualifies for the estate tax or gift tax marital deduction by providing income to the spouse for life, but giving the spouse either no power to appoint the remainder or only a “limited” power.
Qualified Charitable Distribution
A provision in the federal tax Code allows a participant in a traditional IRA who is aged 70½ years or older to donate up to $100,000 per year directly from a taxable IRA to one or more qualified charities, rather than taking a taxable required minimum distribution. Because the QCD is not treated as income to the participant, there is no income tax charitable deduction.
Qualified Domestic Trust
A trust that allows assets passing to a surviving, non-U.S. citizen spouse to qualify for the estate tax marital deduction.
Qualified Personal Residence Trust
An irrevocable trust that passes title to a portion or all of the settlor’s residence to designated beneficiaries after a fixed term of years. If the settlor survives the term and continues to occupy the premises, he or she would pay fair market rent to the remainder beneficiaries The purpose of the arrangement is to discount the value of the remainder gift for gift tax purposes.
Qualified Terminable Interest Property Trust
A trust that qualifies for the estate tax or gift tax marital deduction by providing income to the spouse for life, but giving the spouse either no power to appoint the remainder or only a “limited” power.
Real Property
Land, together with permanent fixtures, such as buildings.
Receipts
Documents that acknowledge the receipt of money, goods, or services.
Regional Center
An organization that provides services and support to individuals with developmental disabilities.
Remainder Interest
A future interest that takes effect after a life estate or a term of years.
Required Minimum Distribution Minimum yearly withdrawals from a qualified retirement plan, including a traditional IRAs, that, as of 2020, are required to begin in the year the participant reaches age 72.
Representative
A person or entity authorized to act on an individual’s behalf. Executors and Trustees are representatives.
Residuary Bequest
Donations that come from the “left over” assets from an estate. Some bequests detail that after the value of everything else is distributed, what remains goes to one or more charities or individuals, without listing a dollar amount or property details.
Residuary Estate
The portion of a decedent’s estate that remains after all specific gifts, debts, and expenses have been paid.
Residuary Legatee
A person or entity named in a will to receive the residuary estate.
Residue
The assets or property that remain in a decedent’s estate after all the estate’s debts, taxes, and expenses are paid, and after all specific gifts have been distributed according to the will. Also called a residuary estate.
Respondent
A person against whom a legal action is filed, particularly in civil and family law cases.
Restricted Funds
A donor might include detailed instructions for how a gift or bequest can be used by a nonprofit. If the nonprofit has accepted the gift or bequest subject to these conditions, the proceeds are treated as an “endowment,” or “restricted fund,” which the nonprofit can access only under limited circumstances.
Revocable Trust
A trust that the Grantor can terminate, revoke, modify, or amend.
Revocable Living Trust
A trust created during the grantor’s lifetime that can be amended or revoked at any time before the grantor’s death.
Right of Survivorship
A legal concept where property automatically passes to the surviving joint owner(s) upon the death of one owner.
Rules of Succession
State laws that determine who will inherit the estate of an individual who has died Intestate .
Sealed Record
A legal record that is not open to the public and can only be accessed by court order.
Self-Proving Will
A will that includes an affidavit signed by the witnesses, making it easier to prove its validity in probate court.
Separate Property
In a marriage, property or assets owned by just one spouse, such as property acquired before marriage and kept separate, or gifts or inheritance kept separate. Anything that is not considered separate property is considered Marital or Community Property.
Settlor
An individual who establishes or settles a trust; also called a “Trustor ” or “Grantor .”
Special Administrator
A person appointed by the court to handle urgent matters in an estate before the appointment of a general administrator or executor.
Special Immigrant Juvenile Status
A legal classification that allows certain foreign minors who have been abused, neglected, or abandoned to obtain lawful permanent residency in the United States.
Special Needs Trust
A trust established for someone who is disabled. It allows trust assets to be used only for expenses that would not disqualify the beneficiary from receiving Medicaid or other need-based benefits.
Specific Bequest
A bequest of a specified item of tangible or intangible property, such as an heirloom, an artwork, or corporate stock. Compare “general bequest.”
Spendthrift Provision
A trust provision often used to protect assets from claims by creditors. It restricts voluntary and involuntary transfers of a beneficiary’s interest.
Spendthrift Trust
A trust that limits the beneficiary’s access to the trust assets to protect them from creditors or poor financial decisions.
Standing
The legal right to bring a lawsuit or challenge a legal decision.
State Death Tax
A tax imposed by some states on the transfer of a decedent’s property. Also called an Inheritance Tax.
Statute
A written law enacted by a legislative body.
Statutory Will
A simple will created using a standard form that complies with state laws.
Step-Up In Basis
An adjustment to the income tax basis of property received from a decedent to its fair market value at the date of his or her death. If the asset has lost value during the decedent’s life, the adjustment may be downward, rather than a “step up.”
Stipulation
An agreement between parties in a legal case regarding certain facts or procedures, which is submitted to the court for approval.
Sua Sponte
A Latin term meaning “on its own motion,” referring to a court taking action without a request from either party.
Substituted Judgment
A legal standard used to make decisions on behalf of an incapacitated person based on what they would have wanted if competent.
Succession Plan
A succession plan is used in business to set the stage for continued continuity and performance. It identifies employees who could take over leadership roles when others die, leave, retire, or take a leave of absence. It can also include plans to transfer ownership.
Successor Fiduciary
A person appointed to replace a fiduciary who can no longer serve, such as a trustee or executor.
Supplement
An additional document or information filed with the court to support or clarify an existing pleading or record.
Surcharge
A penalty imposed on a fiduciary, such as a trustee or executor, for failing to properly manage an estate or trust.
Surety
A person or company that guarantees the performance of another, often required in probate or conservatorship matters.
Surety Bond
A bond provided by a surety that guarantees the performance of a fiduciary.
Surety Bond Rider
An amendment or addition to a surety bond that changes the terms or coverage of the original bond.
Tangible Personal Property
Items that can be touched and moved, such as artwork, jewelry, or cars—as distinguished from Intangible Personal Property . Tangible personal property does not include land or buildings, which are referred to as Real Property .
Taxable Estate
The portion of a decedent’s estate subject to estate taxes after deductions and exemptions.
Tenancy by Entirety
Joint ownership of an asset by spouses in non-community property states, in which both own the asset equally. The asset may not be sold or gifted without the approval of both while both spouses are alive. When one spouse dies, the survivor succeeds to sole ownership.
Tenancy in common
Ownership of property by two or more owners, without a right of survivorship. Shares may be unequal, and each owner’s interest can be separately sold or mortgaged, without the consent of the other owner(s). At the death of each tenant, his or her share passes to his or her heirs or under the terms of his or her will.
Testamentary
A legal document such as a will that becomes effective at death.
Testamentary Disposition
The distribution of property according to the terms of a will.
Testamentary Trust
A trust created by a will, which goes into effect after the will has been probated. As distinguished from a Revocable or Living Trust.
Testate
The condition of having died with a valid will.
Testator
The individual whose property and assets are disposed of by a valid will. The female form of the word is sometimes rendered as “testatrix.”
Title
The legal right to own or possess property.
Totten Trust
A bank account in the name of the account holder “in trust for” another person, which passes to the beneficiary upon the account holder’s death.
Transfer Agent
A financial institution or company that manages the records of shareholders and issues or cancels stock certificates.
Transfer on Death Designation
A beneficiary designation that passes ownership of financial assets, and in some states, real estate, at death to a named beneficiary without those assets entering probate. In the case of a bank account, also called a Payable on Death Designation.
Trial
A formal court proceeding where evidence is presented, and a judge or jury makes a decision.
Trial Readiness Conference
A meeting between the judge and attorneys before trial to ensure that the case is ready to proceed and discuss any final issues.
Trust
A legal arrangement under which a third party, called a trustee, holds assets on behalf of one or more beneficiaries.
Trust Instrument
A legal document that dictates the terms of how the trust is to be managed and distributed.
Trustee
The person or entity named in a trust to manage and administer trust property according to the terms of the trust. Also called a Fiduciary .
Trustor
An individual who establishes or settles a trust; also called a settlor or grantor.
Unified credit
Another term for the Applicable Exclusion Amount .
Uniform Custodial Trust Act
In some states, a law that allows a trust to be created simply by registering assets in the name of someone who will serve as a custodial trustee for an adult or minor beneficiary. The statute itself sets forth the terms of the trust.
Uniform Gifts to Minors Act
A law enacted in all states that allows an irrevocable trust to be created for a minor beneficiary simply by creating a custodial bank or brokerage account for that beneficiary. The statute itself sets forth the terms of the trust.
Uniform Transfers to Minors Act
A law that allows for the transfer of property to a minor without the need for a formal trust, with the property managed by a custodian until the minor reaches a certain age.
Vesting
The process by which a person becomes entitled to a benefit or right, such as ownership of property or eligibility for retirement benefits.
Venue
The geographic location where a legal case is tried, which is determined based on factors such as where the parties reside or where the event occurred.
Verification
A sworn statement confirming the truth of the information provided in a legal document.
Virtual Representation
When a competent adult is allowed to speak for and make decisions on behalf of an incapacitated or minor beneficiary, or as yet unborn and unascertained beneficiaries, of an irrevocable trust
Ward
A person, usually a minor or someone incapacitated, for whom a guardian has been appointed by the court.
Will
A legal document that details the distribution of a decedent’s property to designated individuals or entities State law typically requires that a will signed by the testator in the presence of two witnesses who are not beneficiaries under the will. A will may designate the decedent’s preference for appointment of a guardian for his or her minor children, and the court will typically respect that preference.
Will Contest
A legal challenge to the validity of a will, typically based on claims of fraud, undue influence, or lack of testamentary capacity.
Writ of Execution
A court order authorizing the enforcement of a judgment, typically by seizing and selling the debtor’s property to satisfy the debt.
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