A

• Administrator: A person appointed by the court to manage an estate when there is no will or the named executor cannot serve.

• Advance Directive: A legal document outlining a person’s healthcare wishes in case they become unable to communicate those wishes directly.

• Annual Exclusion: The amount that an individual can gift to another person each year without incurring gift tax. For 2024, this amount is $17,000 per recipient.

• Attorney-in-Fact: A person authorized to act on someone else's behalf in legal or financial matters through a power of attorney.

B

• Beneficiary: A person or entity entitled to receive benefits or assets from an estate, trust, or insurance policy.

• Bypass Trust: Also known as a credit shelter trust; a trust used to reduce estate taxes by sheltering part of an estate from taxation.

C

• Codicil: An amendment or addition to an existing will.

• Conservator: A court-appointed person responsible for managing the affairs of a minor or incapacitated adult.

• Creditor: A person or entity owed money by the deceased.

D

• Decedent: A person who has passed away.

• Durable Power of Attorney: A power of attorney that remains effective even if the principal becomes incapacitated.

E

• Estate: All property, assets, and debts owned by an individual at the time of death.

• Estate Tax: A tax imposed on the transfer of an estate upon death.

F

• Fiduciary: A person who has a legal duty to act in the best interests of another person, such as a trustee, executor, or attorney-in-fact.

G

• Grantor: The person who creates a trust.

• Guardianship: A legal process where someone is appointed to care for another person, usually a minor or incapacitated adult.

H

• Health Care Proxy: A legal document designating someone to make medical decisions on behalf of another person.

I

• Irrevocable Trust: A trust that, once established, cannot be modified or revoked without the consent of the beneficiary or a court order.

J

• Joint Tenancy: A form of property ownership where two or more people own an asset with equal rights, typically with a right of survivorship.

L

• Last Will and Testament: A legal document outlining how a person’s assets will be distributed upon death.

• Living Trust: A trust created during a person's lifetime to manage assets and provide for distribution upon death without probate.

• Living Will: A type of advance directive specifying medical treatment preferences in cases of terminal illness or incapacitation.

P

• Payable on Death (POD): A designation that allows an account owner to name a beneficiary to receive funds directly upon their death.

• Probate: The legal process of administering an estate, validating a will, and distributing assets to heirs.

• Pour-Over Will: A will that ensures any assets not placed in a trust during a person’s lifetime are transferred to the trust upon death.

• Power of Attorney: A legal document giving someone the authority to act on another person’s behalf in legal or financial matters.

R

• Revocable Trust: A trust that can be modified, changed, or revoked by the grantor at any time during their lifetime.

• Roth IRA: A retirement account where contributions are made with after-tax dollars, and distributions during retirement are tax-free.

S

• Special Needs Trust: A trust designed to provide for a disabled beneficiary without disqualifying them from government benefits.

• Successor Trustee: The person or institution named to manage a trust after the original trustee has died or is unable to continue.

T

• Testator: The person who creates a will.

• Trust: A legal entity in which one party (trustee) holds assets for the benefit of another (beneficiary).

U

• Uniform Transfers to Minors Act (UTMA): A law allowing minors to receive gifts or inheritances under the supervision of a custodian until they reach the age of majority.

W

• Will: A legal document outlining how a person’s assets should be distributed after death, and potentially naming guardians for minors.