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Topics & Glossary
Welcome to the Topics & Glossary Hub—your go-to resource for understanding the essentials of estate planning, end-of-life preparation, and legacy organization.

Table of Contents
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
- A-B Trust
- Administration
- Administrator
- Advance Directives
- Advance Healthcare Directive
- Affidavit of Heirship
- Agent
- Aging in Place
- Aging in Place Modifications
- Alkaline Hydrolysis (Water Cremation)
- Alternate Beneficiary
- Ancillary Probate
- Annual Exclusion
- Anticipatory Grief
- Applicable Exemption Amount (or Estate Tax Exemption Amount or Unified Credit)
- Appraise
- Ascertainable Standard
- Ask Three Questions
- Asset Protection Trust
- Attorney-in-Fact
- Basis Step-Up
- Beneficiary
- Beneficiary Designation Form
- Beneficiary Designations
- Beneficiary Rights
- Beneficiary Trusts
- Bereavement Leave
- Blended Family
- Bond (Fiduciary)
- Burial Shroud
- Business Succession
- Bypass Trust
- Caregiver Agreement
- Caregiver Burnout
- Cemetery
- Certificate of Trust
- Charitable Bequest
- Charitable Gift Annuity
- Charitable Lead Trust
- Charitable Remainder Trust
- Child Trust Fund
- Closing Estate
- Codicil
- Community Property
- Conservatorship
- Contingent Beneficiary
- Creditor Claims
- Cremation
- Crummey Trust
- Custody Order
- Death Certificate
- Death Doula
- Deed of Gift
- Deed of Trust
- Digital Executor
- Digital Legacy
- Disclaimer
- Disclaimer Trust
- Disinheritance
- Discretionary Trust
- Distribution Agreements
- DNR (Do Not Resuscitate)
- Durable Power of Attorney For Finances
- Dynasty Trust
- Estate Plan
- Estate Sale
- Elective Share
- Estate Freeze
- Estate Inventory
- Estate Liquidity
- Estate Planning
- Estate Taxes
- Estate Tax Portability
- Estate Tax Returns
- Ethical Will
- Eulogy
- Eulogy Writing
- Executor Bond
- Exempt Property
- Executor
- Family Limited Partnership (FLP)
- Fiduciary
- Fiduciary Duty
- Final Expense Insurance
- Final Income Tax Return
- Financial Planning
- Financial Power of Attorney
- Fixed Income Trust
- Funeral Insurance
- Generation-Skipping Trust (GST)
- Gift Tax
- Grief Counseling
- Grief Journaling
- Grief Triggers
- Guardian
- Guardianship
- Gifting Strategies
- Grantor
- Health Savings Account (HSA)
- Healthcare Proxy
- Heir
- Heir at Law
- Heirloom Asset Distribution
- HIPAA Authorization
- Holographic Will
- Home Burial Laws
- Home Funeral
- Hospice Care
- Incapacitated
- Independent Administration
- Inheritance Tax
- Insurance Trust
- Intestate
- Irrevocable Life Insurance Trust (ILIT)
- Irrevocable Trust
- Joint Tenancy with Right of Survivorship (JTWROS)
- Keogh Plan
- Last Will & Testament
- Legal Pronouncement of Death
- Letters of Administration
- Letters of Testamentary
- Legal Pronouncement of Death
- Letters of Administration
- Letters of Testamentary
- Life Estate
- Life Tenant
- Living Trust
- Living Will
- Long-Term Care Insurance
- Marital Deduction
- Marshaling the Assets
- Mediator
- Medicaid Trust
- Medicaid Planning
- Minor Trust
- Net Estate
- No-Contest Clause
- Nuncupative Will
- Nursing Home
- Palliative Care
- Payable on Death (POD)
- Personal Property Memorandum
- Pet Bequest
- Pet Guardianship
- Pet Insurance
- Pet Legacy & Care
- Pet Memorialization
- Pet Trust
- Planned Giving
- Pour-Over Will
- Postnuptial Agreement
- Power of Attorney
- PreNeed Insurance
- Probate Attorney
- Probate
- Probate Documents
- Probate Estate
- Probate Fees
- Qualified Charitable Distribution (QCD)
- Qualified Domestic Trust (QDOT)
- Qualified Personal Residence Trust (QPRT)
- Q-Tip Trust (Qualified Terminable Interest Property Trust)
- Residuary Estate
- Renunciation
- Reverse Mortgage
- Revocable Living Trust
- Revocable Trust
- Self-Proving Will
- Settle an Estate
- Simplified Probate
- Smart Home Technology for Seniors
- Spendthrift Clause
- Spendthrift Trust
- Special Needs Trust
- Springing Power of Attorney
- Stepped-Up Basis
- Stepped-Up Basis
- Succession Planning
- Successor Trustee
- Surviving Spouse
- Tax Basis
- Testamentary Trust
- Testator/Testatrix
- Title Documents
- Totten Trust
- Trust
- Trust Documents
- Trust Protector
- Trustee
- Trustee Liability
- Unclaimed Property
- Undue Influence
- Unified Credit Shelter Trust
- Uniform Probate Code (UPC)
- Uniform Simultaneous Death Act (USDA)
- Veterans End-of-Life Benefits
- Will
- Will Contest
- Will Substitutes
An A-B trust is an estate planning tool used by married couples to minimize estate taxes and maximize asset protection. Upon the death of the first spouse, the trust splits into two: the "A" trust (Survivor's Trust) and the "B" trust (Bypass Trust or Decedent's Trust). The "A" trust remains under the control of the surviving spouse, while the "B" trust holds the deceased spouse's assets up to the estate tax exemption limit. This setup allows the assets in the "B" trust to bypass the surviving spouse's taxable estate, potentially reducing overall estate taxes.
Administration
Administrator
The individual or corporate fiduciary appointed by the court to manage an estate if no executor or personal representative has been appointed or if the named executor or personal representative is unable or unwilling to serve.
Advance Healthcare Directive
See Advance Directives
Affidavit of Heirship
A legal document used to establish the rightful heirs of a deceased person when no will exists and the estate does not go through probate. It is often employed to transfer ownership of real estate or other assets. The affidavit is typically signed by someone familiar with the decedent’s family and notarized, and it must comply with state laws to be valid.
Agent
A person who is given authority, in a document called a power of attorney, to act on behalf of another as a fiduciary. Related concepts are Durable Power of Attorney, Durable Financial Power of Attorney, and Durable Healthcare Power of Attorney.
Aging in Place Modifications
Adjustments made to a home, such as installing grab bars or ramps, to enable seniors to live independently and safely in their homes as they age.
Alkaline Hydrolysis (Water Cremation)
An eco-friendly alternative to traditional cremation that uses water, heat, and a chemical solution of potassium hydroxide or sodium hydroxide to accelerate the natural decomposition process. The body is reduced to bone fragments and a sterile liquid, with significantly lower environmental impact compared to flame-based cremation. The remaining bone fragments are processed into ashes and returned to the family, similar to traditional cremation.
Alternate Beneficiary
A person or organization named to receive a testator’s assets if the primary beneficiary named in the testator’s will or trust passes away before the testator. If an alternate beneficiary is not selected and the primary beneficiary passes away before the testator, the default rules of each state will establish who receives the assets.
Annual Exclusion
The amount an individual may give annually to each of an unlimited number of recipients free of federal gift or other transfer taxes and without any IRS reporting requirements. In addition, these gifts do not use any of an individual’s federal gift tax exemption amount. The annual exclusion is indexed for inflation and is $14,000 per donee for 2013. Payments made directly to providers of education or medical care services also are tax-free and do not count against the annual exclusion or gift tax exemption amounts.
Anticipatory Grief
The emotional distress and mourning experienced before an impending loss, such as the death of a loved one due to a terminal illness. It allows individuals to begin processing their grief and emotions in advance, often involving feelings of sadness, fear, anger, or guilt. Anticipatory grief can also provide an opportunity for closure, meaningful conversations, and preparation for the eventual loss.
Applicable Exemption Amount (or Estate Tax Exemption Amount or Unified Credit)
Another name for the estate tax exemption amount (formerly called the unified credit), which shelters a certain value of assets from the federal estate and gift tax. This amount is $5 million and is inflation adjusted annually.
Ascertainable Standard
A standard, usually relating to an individual’s health, education, support, or maintenance, that defines the permissible reasons for making a distribution from a trust. Use of an ascertainable standard prevents distributions from being included in a trustee/beneficiary’s gross estate for federal estate tax purposes. Depending on state law, the use of an ascertainable standard may provide less protection for a beneficiary from creditors. If the risk of a lawsuit or divorce concerns you, you should discuss distribution standards with your attorney.
Asset Protection Trust
A trust designed to protect assets from creditors and legal judgments by placing them in a legally protected entity.
Attorney-in-Fact
An individual appointed under a Power of Attorney to act on behalf of another person (the principal) in legal, financial, or medical matters. The attorney-in-fact has authority as specified in the Power of Attorney document and must act in the best interests of the principal. This role does not require the individual to be a licensed attorney.
Basis Step-Up
A tax provision that adjusts the tax basis of an inherited asset to its fair market value at the time of the decedent's death. This "stepped-up" basis reduces capital gains taxes if the asset is sold by the inheritor. For example, if a property was purchased for $100,000 and is worth $500,000 at the time of death, the inheritor’s basis becomes $500,000, minimizing taxable gains on a future sale.
Beneficiary
Beneficiary Designation Form
A document used to name the person(s) or entity to receive assets from a financial account or insurance policy upon the account holder's death.
Beneficiary Designations
For assets with designated beneficiaries, such as life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts, the beneficiaries will need to file claims and provide necessary documentation to receive their inheritances.
Beneficiary Rights
The legal entitlements of a person or entity named in a will, trust, or financial account to receive assets or benefits from the estate or trust. Beneficiary rights typically include the right to receive timely information about the estate or trust, an accounting of assets, and the proper distribution of their inheritance. Beneficiaries may also challenge the administration of the estate or trust if they believe their rights are being violated.
Beneficiary Trusts
Trusts established to manage and protect assets for the benefit of a designated beneficiary. These trusts can include conditions or restrictions on how and when the beneficiary can access the assets, often used to safeguard the inheritance from creditors, legal claims, or poor financial decisions. Common types include special needs trusts, spendthrift trusts, and support trusts, each tailored to the unique needs of the beneficiary.
A period of time granted by an employer for an employee to take off work following the death of a close family member or loved one. Bereavement leave allows individuals to grieve, handle funeral arrangements, and settle estate matters. Policies for bereavement leave vary by employer and may include paid or unpaid time off, with typical durations ranging from a few days to two weeks. Some employers may also extend bereavement leave to include non-family relationships or allow additional flexibility.
Blended Family
A family unit that includes children from one or both partners' previous relationships, along with any children they may have together. Estate planning for blended families often requires special considerations, such as ensuring fair treatment of all children, addressing stepchildren's inheritance rights, and balancing the needs of the surviving spouse with those of other beneficiaries. Tools like trusts and prenuptial or postnuptial agreements are frequently used to navigate these complexities.
Bond (Fiduciary)
A financial guarantee required by a probate court to ensure that an executor, administrator, or trustee fulfills their duties responsibly in managing an estate or trust. The bond protects beneficiaries and creditors against potential financial losses caused by the fiduciary’s misconduct, negligence, or failure to properly administer the estate. The cost of the bond is typically paid from the estate’s assets.
Burial Shroud
A simple cloth used to wrap the body of a deceased person before burial, often as part of natural or religious burial practices. Burial shrouds are typically made from biodegradable materials such as cotton, linen, or silk and are used in cultures or traditions that emphasize simplicity, environmental responsibility, or adherence to specific rituals.
Bypass Trust
See A-B Trust
Caregiver Agreement
A formal contract between a caregiver and a recipient (or their family) outlining services, compensation, and terms of care.
Caregiver Burnout
Physical, emotional, and mental exhaustion experienced by individuals providing prolonged care for a loved one.
Certificate of Trust
A legal document that provides a summary of the key terms of a trust without disclosing the full trust agreement. It is often used to confirm the trust’s existence, the authority of the trustee, and the trust's powers when dealing with financial institutions, transferring property, or managing trust assets. The certificate protects the privacy of the trust’s terms and beneficiaries while fulfilling legal requirements.
A provision in a will or trust that designates a charity to receive a portion of the estate upon the decedent's death.
Charitable Gift Annuity
A trust created during lifetime or at death that distributes an annuity or unitrust amount to a named charity for life or a term of years, with any remaining trust assets passing to designated non-charitable beneficiaries upon termination of the trust.
Child Trust Fund
A financial account or trust established to hold assets for the benefit of a minor child until they reach a specified age.
Closing Estate
The estate's executor or administrator will file a final accounting with the court, and, once approved, the estate will be closed, and any remaining funds will be distributed to beneficiaries.
A legal document used to make amendments or additions to an existing will without rewriting the entire document. A codicil must meet the same legal requirements as the original will, including being signed and witnessed, and it should clearly reference the will it is modifying. Codicils are typically used for minor updates, such as changing beneficiaries or appointing a new executor.
A form of joint ownership recognized in certain states, where all property acquired by a married couple during the marriage is considered equally owned by both spouses, regardless of who earned the income or whose name is on the title. Exceptions typically include property acquired before the marriage or received as a gift or inheritance. Community property laws affect asset distribution during divorce, death, or estate planning.
A legal arrangement in which a court appoints an individual or entity (the conservator) to manage the financial or personal affairs of someone who is unable to do so themselves (the conservatee) due to incapacity, disability, or age. Conservatorships can be limited to specific responsibilities or encompass all aspects of the conservatee's life, including managing assets, paying bills, and making healthcare decisions.
A secondary beneficiary who will receive assets from a will, trust, or insurance policy if the primary beneficiary is deceased or otherwise unable to inherit.
Creditor Claims
Requests made by creditors to collect debts owed by a deceased person from their estate. During probate, creditors are typically required to file claims within a specified period to receive payment. Valid claims are settled before distributing assets to beneficiaries, and if the estate lacks sufficient funds, some debts may go unpaid. Certain assets, such as those held in trusts or designated with beneficiaries, may be protected from creditor claims.
Crummey Trust
A type of irrevocable trust that allows contributions to be treated as present gifts for tax purposes, enabling the donor to take advantage of the annual gift tax exclusion.
Custody Order
A custody order is a legal document issued by a court that outlines the arrangements for the custody and care of a child or children in the context of divorce, separation, or other legal proceedings involving parents or guardians. The order typically specifies which parent or guardian will have physical custody (the child's primary residence) and legal custody (the right to make decisions about the child's upbringing, education, healthcare, etc.).
Custody orders aim to ensure the well-being and best interests of the child. They may include details about visitation schedules, holidays, and special arrangements. The terms of a custody order can be agreed upon by the parties involved or determined by a judge if the parents cannot reach a mutual agreement. These orders are legally binding, and violations can lead to legal consequences.
A death certificate is the official document that certifies the individual's death. It is typically issued by a medical professional or a coroner and is required for various legal and administrative purposes. It can often be obtained from the vitals statistics office in the state the person died, though, the funeral home can also help you get them. Some companies (eg: banks) will require a physical certificate of death. Others only need a scanned copy. Note that each Certificate of Death can cost $10-20.
Death Doula
Deed of Gift
A legal document that transfers ownership of property or assets from one person (the donor) to another (the recipient) as a gift, without monetary compensation. It is often used for real estate, personal property, or other valuable items. The deed must typically include a description of the property, the intent to gift, and the donor’s signature, and may require notarization or recording, depending on local laws.
Deed of Trust
A legal document used in real estate transactions to transfer the legal title of property to a trustee, who holds the property as collateral for a loan.
Digital Executor
A person designated to manage digital assets (e.g., email accounts, social media, online subscriptions) after someone’s death.
Digital Legacy
The collection of a person’s digital assets and online presence that remains after their death, including social media accounts and digital files.
Disclaimer
A legal refusal to accept an inheritance, allowing the disclaimed assets to pass to the next designated beneficiary.
Disclaimer Trust
A type of trust that allows a surviving spouse to disclaim (refuse) some assets, which then transfer to the trust for tax planning purposes.
Disinheritance
The act of intentionally excluding a person from inheriting assets through a will or trust.
Discretionary Trust
A trust in which the trustee has the discretion to determine how and when the trust's assets will be distributed to the beneficiaries.
Distribution Agreements
DNR (Do Not Resuscitate)
A medical order that directs healthcare providers not to perform CPR or other life-saving procedures if a person’s heart stops or they stop breathing.
Dynasty Trust
A long-term trust designed to pass wealth across multiple generations without incurring estate or generation-skipping transfer taxes.
Estate Plan
A comprehensive plan for managing an individual’s assets during their life and distributing them after their death, often including wills, trusts, and powers of attorney.
A sale conducted to liquidate the belongings of an individual, often following a death, downsizing, or relocation. Estate sales typically involve the sale of household items, furniture, collectibles, and other personal property. These sales are usually managed by professional estate sale companies, which handle pricing, advertising, and the sale process to maximize the value of the assets and simplify the transition for the family. Estate sales can occur on-site or online.
Elective Share
A legal provision that allows a surviving spouse to claim a portion of the deceased spouse’s estate, regardless of what is outlined in the will. The elective share is intended to prevent a surviving spouse from being disinherited or left with insufficient support. The amount varies by state but typically ranges from one-third to one-half of the estate. The surviving spouse must formally request the elective share within a specified timeframe, as determined by state law.
Estate Freeze
A financial and estate planning strategy used to limit the growth of an individual’s taxable estate by transferring appreciating assets to heirs or trusts while retaining the current value of the assets for tax purposes. This approach "freezes" the estate’s value at its current level, reducing potential estate taxes on future appreciation. Common tools for an estate freeze include family limited partnerships (FLPs), grantor retained annuity trusts (GRATs), and installment sales to intentionally defective grantor trusts (IDGTs).
Estate Inventory
A comprehensive list of all the assets and liabilities belonging to a deceased individual, compiled as part of the probate or estate administration process. The inventory typically includes real estate, personal property, financial accounts, investments, debts, and other obligations. It is used to determine the total value of the estate, calculate taxes, and ensure proper distribution of assets to beneficiaries and payment of debts.
Estate Liquidity
The ability of an estate to cover its debts and expenses with liquid assets.
Estate Planning
The process of arranging for the orderly transfer of one's assets upon death to minimize taxes and ensure the desired distribution of assets.
Taxes levied on the total value of a deceased person’s estate before it is distributed to beneficiaries. Estate taxes are imposed by the federal government and, in some cases, state governments, and are calculated based on the value of all assets owned by the decedent, such as real estate, investments, and personal property. Certain exemptions, deductions, and credits may reduce the taxable value of the estate, and the tax rate typically increases as the value of the estate exceeds certain thresholds.
Estate Tax Portability
A provision under federal tax law that allows a surviving spouse to inherit the unused portion of their deceased spouse’s federal estate tax exemption. By electing portability, the surviving spouse can combine their own exemption with the unused exemption, potentially doubling the amount of assets that can pass tax-free to heirs. This election must be made by filing a federal estate tax return (Form 706) for the deceased spouse, even if no estate taxes are due.
Estate Tax Returns
A non-legal document that conveys a person's values, life lessons, hopes, and personal messages to loved ones, serving as a spiritual or emotional legacy. Unlike a traditional will, which focuses on the distribution of assets, an ethical will shares heartfelt reflections, guidance, and family history. Often created as a letter, video, or recorded message, ethical wills provide a meaningful way to preserve and pass down intangible aspects of one's life.
Eulogy
A speech or written tribute delivered at a funeral or memorial service, honoring and celebrating the life of someone who has passed away. It typically includes personal anecdotes, memories, accomplishments, and reflections on the deceased's character and the impact they had on others. The purpose of a eulogy is to offer comfort to those mourning and to commemorate the legacy of the individual.
Eulogy Writing
The process of crafting a speech that honors the life and memory of a deceased individual, often delivered at a funeral or memorial service.
Executor Bond
A bond purchased by an executor to ensure the proper administration of an estate and protect beneficiaries from potential misconduct or negligence.
Exempt Property
Property that is not considered part of the estate if the decedent leaves a surviving spouse and/ or children. The property is passed directly to the surviving spouse and/or children and are not subject to the probate process and therefore are shielded from property taxes and creditors. The specific property that qualifies varies greatly state-by-state.
Executor
A person you appoint who is responsible for carrying out the legal and financial wishes stated in your will, including the payment of debts, sale of assets, and distributions to beneficiaries. This person plays the same role as an administrator if you pass away without a valid will.
Family Limited Partnership (FLP)
A legal business structure commonly used in estate planning to manage and transfer family assets while minimizing taxes and preserving control. An FLP consists of general partners, who maintain control and management authority, and limited partners, who hold ownership shares but have no management responsibilities. It allows parents or senior family members to gradually transfer assets to heirs while taking advantage of valuation discounts for lack of marketability or control, reducing estate and gift tax exposure.
Fiduciary
A person or institution who is legally responsible to act in the best interest of the person for whom they are or it is serving.
Fiduciary Duty
The legal obligation of a fiduciary (e.g., executor, trustee) to act in the best interests of the beneficiaries and manage their assets responsibly.
Final Expense Insurance
See Funeral Insurance
Final Income Tax Return
The deceased person's final income tax return, covering the period up to their death, must be filed. If the estate generates income, an estate income tax return may also be necessary.
Financial Planning
The process of organizing and managing one’s finances, including investments, taxes, retirement, and estate planning, to achieve personal financial goals.
Financial Power of Attorney
See Durable Power of Attorney for Finances
Fixed Income Trust
Generation-Skipping Trust (GST)
A trust that allows assets to pass directly to grandchildren or later generations, bypassing the children, while avoiding estate taxes on the intervening generations.
Gift Tax
A federal tax imposed on the transfer of property or assets to another person during the giver’s lifetime, exceeding certain annual exclusion limits.
Grief Counseling
Professional therapy focused on helping individuals cope with the emotional and psychological effects of loss.
Grief Journaling
The practice of writing about feelings and memories related to a loss as a therapeutic way to process grief.
Grief Triggers
Events, memories, or objects that evoke strong emotions related to a loss, often unexpectedly.
Guardian
A person appointed by the court to care for a minor child or incapacitated adult, making decisions about their well-being, education, and health.
Guardianship
Legal authority granted to a person to make decisions on behalf of an incapacitated individual.
Gifting Strategies
Techniques used to transfer assets to heirs during the donor's lifetime, often with tax benefits.
Grantor
A person who creates a trust.
Health Savings Account (HSA)
A tax-advantaged savings account that allows individuals to set aside money for medical expenses, available to those enrolled in high-deductible health plans.
Healthcare Proxy
Heir
Heir at Law
An individual who is legally entitled to inherit a deceased person's estate under the laws of intestacy (when there is no valid will). Typically, heirs at law are the deceased person's closest relatives, such as children, spouses, or parents, in the absence of a will specifying other beneficiaries. The exact order of priority for heirs at law varies by jurisdiction.
Heirloom Asset Distribution
The process of designating and passing down sentimental or valuable family items to heirs.
HIPAA Authorization
A legal document that allows a designated person to access your protected health information under the Health Insurance Portability and Accountability Act (HIPAA).
A type of will that is handwritten and signed by the testator. Only some states recognize holographic wills as valid, and those must follow state-by-state guidelines.
Home Burial Laws
Regulations governing the burial of a deceased person on private property, which vary by jurisdiction.
A type of specialized care focused on providing comfort, dignity, and support to individuals with a terminal illness, typically during the final months of life. Hospice care addresses physical, emotional, social, and spiritual needs while emphasizing pain and symptom management rather than curative treatments. Care is provided by a multidisciplinary team, including doctors, nurses, social workers, chaplains, and volunteers, in settings such as the patient’s home, a hospice facility, or a hospital. Support is also extended to the patient’s family and caregivers.
Incapacitated
Unable to make decisions or manage one's affairs due to physical or mental impairment.
Independent Administration
Insurance Trust
Intestate
The condition of dying without a valid will. In such cases, the distribution of the deceased person’s assets is determined by state intestacy laws, which typically prioritize close relatives like spouses and children.
Irrevocable Life Insurance Trust (ILIT)
Irrevocable Trust
A trust that cannot be altered, amended, or revoked after its creation without the consent of the beneficiaries. Assets placed into an irrevocable trust are permanently removed from the grantor’s control, offering tax advantages and creditor protection.
Joint Tenancy with Right of Survivorship (JTWROS)
A form of property ownership where each owner has an equal share, and the surviving owner inherits the deceased owner's share.
Keogh Plan
A tax-deferred retirement savings plan designed for self-employed individuals and unincorporated businesses. It allows eligible participants to contribute pre-tax income toward retirement, with investment growth being tax-deferred until funds are withdrawn. Keogh plans are subject to contribution limits and specific IRS regulations.
A Last Will and Testament is a legal document that communicates a person's final wishes pertaining to their assets by providing specific instructions about what to do with their possessions after they die.
Legal Pronouncement of Death
The formal declaration by an authorized medical professional, such as a physician, nurse, or coroner, that an individual has died. This pronouncement is a prerequisite for issuing a death certificate and typically includes documentation of the date, time, and cause of death.
Letters of Administration
A legal document issued by a probate court granting an individual (referred to as the administrator) the authority to manage and settle the estate of a deceased person who died without a will (intestate) or when no executor is named in the will. These letters enable the administrator to handle tasks such as paying debts, distributing assets to heirs, and managing the estate’s affairs.
Letters of Testamentary
A legal document issued by a probate court authorizing the executor named in a decedent’s will to act on behalf of the estate. This document grants the executor the authority to manage the estate, including paying debts, distributing assets to beneficiaries, and performing other administrative tasks in accordance with the terms of the will.
Legal Pronouncement of Death
The formal confirmation by a licensed medical professional, such as a doctor, nurse, or coroner, that an individual has died. This confirmation typically includes noting the date, time, and circumstances of death and is required for issuing a death certificate and initiating post-death procedures, such as estate administration.
Letters of Administration
Letters of Testamentary
A legal document issued by a probate court that officially authorizes the executor named in a deceased person’s will to administer the estate. This document grants the executor the power to collect assets, pay debts and taxes, and distribute property to beneficiaries as outlined in the will.
Life Estate
A form of property ownership where an individual, called the life tenant, has the legal right to use and occupy a property for their lifetime. Upon the life tenant's death, ownership of the property automatically passes to the designated beneficiary or beneficiaries, known as the remainderman. The life tenant cannot sell or mortgage the property without the consent of the remainderman.
Life Tenant
An individual granted the right to use and occupy a property for their lifetime, after which the property passes to a remainderman.
Living Trust
A legal document created during an individual's lifetime to hold and manage assets for their benefit and eventual distribution. The creator, called the grantor or settlor, transfers ownership of assets into the trust and designates a trustee to manage them. The grantor typically acts as the trustee during their lifetime and names a successor trustee to take over upon their death or incapacity. A living trust can be revocable (allowing changes or termination) or irrevocable (permanent), and it helps avoid probate, maintain privacy, and streamline asset distribution.
Living Will
A legal document that outlines an individual’s preferences for medical treatment and end-of-life care if they become unable to communicate their decisions. It typically includes instructions regarding life-sustaining treatments, resuscitation, artificial nutrition and hydration, and pain management. A living will ensures that medical providers and loved ones understand and respect the individual’s wishes during critical health situations.
Long-Term Care Insurance
A type of insurance designed to cover the costs associated with long-term care services, such as nursing home care, home healthcare, and assisted living, which are not typically covered by regular health insurance or Medicare. Long-term care insurance helps individuals manage the financial burden of extended care needed due to aging, illness, or disability, providing coverage for services that assist with activities of daily living (ADLs) like bathing, dressing, and eating. Policies vary in terms of benefits, coverage duration, and premiums.
A deduction that allows the unlimited transfer of assets between spouses without incurring estate or gift tax.
Marshaling the Assets
The process undertaken by an executor or administrator of an estate to identify, collect, and secure all of a deceased person’s assets. This step ensures that all property, financial accounts, and other valuables are accounted for, preserved, and managed appropriately before paying debts, taxes, and distributing the remaining assets to beneficiaries. It is a crucial part of estate administration.
Mediator
A neutral third party who facilitates discussions and negotiations between disputing parties to help them reach a mutually acceptable agreement. In the context of estate planning and administration, a mediator may assist families in resolving conflicts over inheritance, trust terms, or end-of-life decisions without resorting to litigation. Mediators focus on fostering communication, identifying common interests, and guiding participants toward amicable solutions.
Medicaid Trust
A type of irrevocable trust designed to help individuals qualify for Medicaid assistance by protecting assets from being counted toward Medicaid's asset limits. Medicaid trusts allow the grantor to transfer assets, such as a home or savings, into the trust while still potentially qualifying for Medicaid benefits, particularly for long-term care. The trust must meet specific Medicaid eligibility requirements, and the assets placed in the trust may not be accessible to the grantor, depending on the type of trust. These trusts are often used as part of Medicaid planning to preserve assets while ensuring eligibility for care.
Medicaid Planning
The process of organizing an individual’s financial and legal affairs to meet eligibility requirements for Medicaid, a government program that provides healthcare coverage for low-income individuals, including long-term care services. Medicaid planning often involves strategies to protect assets, such as creating trusts, spending down assets, or transferring property, while ensuring compliance with Medicaid’s strict income and resource limits. Proper planning can help preserve a person’s resources for their family while securing essential medical and long-term care services.
Minor Trust
A trust established to manage assets for a minor until they reach a specified age or meet other conditions.
Net Estate
The value of a deceased person's estate after all debts, taxes, and expenses (such as funeral costs and administrative fees) have been subtracted from the total value of their assets. The net estate represents the amount available for distribution to the beneficiaries or heirs according to the will, trust, or intestacy laws.
No-Contest Clause
A provision in a will or trust designed to discourage beneficiaries from challenging the document in court. It typically states that any beneficiary who contests the validity of the will or trust will forfeit their inheritance or receive a reduced share. These clauses aim to prevent costly and divisive legal disputes, though their enforceability varies by jurisdiction.
Nuncupative Will
An oral will made by a person, typically during their final moments, in the presence of witnesses. It is often limited to the disposition of personal property and is recognized only in certain jurisdictions under specific circumstances, such as imminent death. To be valid, nuncupative wills usually require strict adherence to local laws, including documentation and witness testimony.
Nursing Home
A specialized form of medical care focused on improving the quality of life for individuals with serious, chronic, or life-threatening illnesses. Palliative care addresses physical, emotional, psychological, and spiritual needs, providing relief from pain, symptoms, and stress associated with the illness. Unlike hospice care, palliative care can be provided alongside curative treatments and is available at any stage of the illness. It involves a multidisciplinary team that supports both the patient and their family.
Payable on Death (POD)
Personal Property Memorandum
A legal document that accompanies a will, specifying the distribution of tangible personal property, such as jewelry, artwork, or household items, to named beneficiaries. This memorandum is typically less formal than the will itself, allowing the testator to update it without revising the entire will. For it to be enforceable, the memorandum must be referenced in the will and comply with state laws.
Pet Bequest
Pet Guardianship
Legal arrangements to designate a caretaker for a pet if the owner becomes unable to provide care.
Pet Memorialization
Ways to honor a deceased pet, such as through keepsakes, urns, or memorial ceremonies.
Pet Trust
A legal arrangement to set aside funds and designate a caretaker for a pet’s ongoing care after the owner’s death.
Planned Giving
Pour-Over Will
A will that directs any remaining assets not included in a trust to be transferred to the trust upon death.
Postnuptial Agreement
A legal contract entered into by spouses after marriage to outline the ownership and division of assets, debts, and financial responsibilities in the event of separation, divorce, or death. Postnuptial agreements can address issues such as property rights, spousal support, and inheritance, providing clarity and protection for both parties. These agreements must comply with state laws and be created voluntarily, with full disclosure of financial information.
A legal document that grants one person, called the agent or attorney-in-fact, the authority to act on behalf of another person, known as the principal, in financial, legal, or medical matters. The scope of authority can be broad or limited, depending on the terms outlined in the document. Powers of attorney can be durable (remaining in effect if the principal becomes incapacitated) or non-durable (ending if the principal becomes incapacitated).
Probate
Probate Documents
When the deceased had a will or died without a will, the estate may need to go through the probate process. Probate court involves various legal documents, including petitions for appointment of an executor or administrator, inventories of assets, and an accounting of estate assets and liabilities.
Probate Estate
A subset of a person’s estate that goes through probate when the testator passes away. Usually the probate estate does not include assets under joint ownership, payable on death accounts, retirement plans such as 401Ks & IRAs, insurance policies with specified beneficiaries, and any assets in a trust.
Probate Fees
Fees that are paid when an estate goes through probate. Usually these include legal, executor, and appraisal fees as well as court costs. The fees are typically paid from the assets in the probate estate before the assets are fully distributed to the heirs.
Qualified Charitable Distribution (QCD)
Qualified Domestic Trust (QDOT)
A type of trust designed to allow a non-U.S. citizen surviving spouse to benefit from the marital deduction for federal estate tax purposes. The QDOT enables the deferral of estate taxes on assets transferred to the trust until distributions are made or the surviving spouse passes away. To qualify, the trust must meet specific IRS requirements, including having at least one U.S. trustee and ensuring that estate taxes are paid on qualifying distributions.
Qualified Personal Residence Trust (QPRT)
Q-Tip Trust (Qualified Terminable Interest Property Trust)
A type of trust that allows the grantor to provide income and financial support to a surviving spouse while preserving the trust’s principal for other beneficiaries, often children from a previous marriage. The surviving spouse receives income from the trust for their lifetime, but they cannot change the trust’s ultimate beneficiaries. A Q-Tip Trust also qualifies for the marital deduction, deferring estate taxes until the surviving spouse's death.
Residuary Estate
The portion of a deceased person’s estate that remains after all debts, taxes, expenses, and specific bequests outlined in the will have been paid or distributed. The residuary estate is typically left to one or more beneficiaries named in the will, and if no beneficiaries are specified, it is distributed according to state intestacy laws.
Renunciation
Reverse Mortgage
A loan for seniors that allows them to convert home equity into cash without monthly payments, repayable when they move, sell, or pass away.
Revocable Living Trust
A specific type of revocable trust created during the grantor’s lifetime to hold and manage their assets. The grantor retains control over the trust and can amend or revoke it as needed. Upon the grantor’s death or incapacity, the trust provides for the seamless management and distribution of assets, avoiding probate while maintaining privacy. It is a flexible and popular tool for estate planning.
Revocable Trust
A legal arrangement where the grantor transfers assets into a trust that can be amended, modified, or revoked at any time during their lifetime. The grantor often serves as the initial trustee and beneficiary, retaining control over the assets. Upon the grantor’s death or incapacity, a successor trustee manages and distributes the trust’s assets according to the grantor’s instructions, bypassing probate and maintaining privacy.
Self-Proving Will
Settle an Estate
The process of handling the final affairs after a person passes away. This usually includes the valuation (or appraisal) of assets, payment of debts and taxes, and distribution of assets to beneficiaries.
Simplified Probate
Smart Home Technology for Seniors
Devices and systems designed to enhance safety, convenience, and independence for seniors living at home.
Spendthrift Clause
A provision in a trust that protects a beneficiary’s inheritance from creditors or poor financial decisions.
Spendthrift Trust
A type of trust designed to protect the trust's assets from the beneficiaries' creditors and prevent beneficiaries from squandering their inheritance. The trustee has control over the distribution of assets, and the beneficiaries cannot access the principal of the trust unless authorized by the trustee. This type of trust is often used for beneficiaries who may lack financial discipline or are at risk of financial mismanagement. It also helps ensure that the assets are used for the intended purpose, such as education or healthcare.
Springing Power of Attorney
A power of attorney that becomes effective only upon the occurrence of a specified event, such as incapacitation.
Stepped-Up Basis
A tax rule that adjusts the value of an inherited asset to its fair market value at the time of the decedent’s death, rather than its original purchase price. This step-up in basis can significantly reduce capital gains taxes when the inheritor sells the asset. For example, if a property originally purchased for $100,000 is worth $500,000 at the time of the owner’s death, the inheritor’s basis would be stepped up to $500,000, minimizing taxable gains.
Stepped-Up Basis
A tax rule that adjusts the value of an inherited asset to its fair market value at the time of the decedent’s death, rather than its original purchase price. This step-up in basis can significantly reduce capital gains taxes when the inheritor sells the asset. For example, if a property originally purchased for $100,000 is worth $500,000 at the time of the owner’s death, the inheritor’s basis would be stepped up to $500,000, minimizing taxable gains.
Succession Planning
The strategic process of preparing for the transfer of leadership, ownership, or responsibilities in a business, organization, or family estate. Succession planning ensures continuity by identifying successors, developing transition plans, and addressing financial, legal, and tax implications. In estate planning, it often involves designating heirs, creating wills or trusts, and establishing strategies to minimize disputes and taxes.
Successor Trustee
An individual or institution designated to take over the management and administration of a trust if the original trustee (typically the grantor) becomes incapacitated, resigns, or passes away. The successor trustee is responsible for carrying out the terms of the trust, including managing assets, paying debts, and distributing property to beneficiaries as specified in the trust document.
Surviving Spouse
The spouse of a deceased individual who is entitled to certain legal rights and benefits under estate and inheritance laws. These rights may include a share of the estate (even if not specified in the will), Social Security or pension benefits, and the ability to claim exemptions, such as the marital deduction for estate taxes. The rights of the surviving spouse vary by jurisdiction and may depend on the existence of prenuptial or postnuptial agreements.
Tax Basis
The value used to determine capital gains or losses for tax purposes when an asset is sold. The basis is typically the asset's purchase price, including costs like commissions and fees. For inherited assets, the tax basis is often adjusted to the fair market value at the time of the decedent's death, known as a stepped-up basis, which can reduce capital gains taxes for the beneficiary.
Testamentary Trust
Testator/Testatrix
The legal term for an individual who creates and signs a will. Testator refers to a male, and testatrix refers to a female, though the gender-neutral term "testator" is now commonly used. The testator must have legal capacity and intent, and the will must meet jurisdictional requirements to be valid.
Title Documents
Official records that prove ownership of property or assets, such as real estate, vehicles, or other titled possessions. These documents include deeds, certificates of title, and registration papers. In estate planning, title documents are crucial for determining how ownership will transfer upon death, and they often reflect designations like joint tenancy, tenancy in common, or beneficiaries under "transfer on death" (TOD) provisions.
Totten Trust
A type of revocable bank account trust in which the account holder (grantor) names a beneficiary to receive the funds upon their death. The account remains under the grantor's control during their lifetime, and the beneficiary has no access until the grantor’s death. Often referred to as a "payable on death" (POD) account, it is a simple way to avoid probate for the designated funds.
A legal agreement between three parties: a grantor, a trustee, and a beneficiary or beneficiaries. The grantor can be also the trustee and/ or a beneficiary, but a beneficiary other than the grantor must also be appointed. Oftentimes a trust provision is added to a will when someone wants additional flexibility on how assets are treated after they pass away. There are many different types of trusts that are tailored towards specific situations.
Trust Documents
If the deceased person had set up one or more trusts, the trust documents will govern the distribution of trust assets. A successor trustee may need to step in to manage the trust's affairs.
Trust Protector
A third-party individual or entity appointed to oversee a trust, ensuring that the trustee acts in the best interest of the beneficiaries.
Trustee
A person or institution who is responsible for managing any property or assets a grantor transfers into and titles in the name of the trust. The trustee has duties to be loyal, be prudent, be impartial, and to inform the beneficiaries of the trust. The trustee can be the grantor and/ or a beneficiary of a trust in addition to the trustee role.
Trustee Liability
The legal responsibility of a trustee to act in the best interests of the trust's beneficiaries and in accordance with the terms of the trust agreement. Trustees can be held liable for breaches of their fiduciary duties, such as failure to prudently manage assets, conflicts of interest, misappropriation of funds, or failure to comply with legal requirements. If found negligent or in breach of their duties, trustees may be required to compensate the trust for any losses incurred due to their actions or inactions.
Assets or funds that have been abandoned or left inactive by their rightful owner for a specified period, typically due to a change in address, death, or lack of awareness. Common examples include uncashed checks, dormant bank accounts, forgotten insurance policies, and unclaimed tax refunds. These assets are often turned over to state governments, where they can be reclaimed by rightful owners or their heirs through a formal process. Searching state unclaimed property databases is a key step in recovering these funds.
Undue Influence
Unified Credit Shelter Trust
A trust designed to maximize the use of both spouses' estate tax exemptions.
Uniform Simultaneous Death Act (USDA)
A law that provides rules for determining the distribution of assets when two or more individuals die simultaneously, or it cannot be established who died first. Under the USDA, each decedent’s estate is handled as if they survived the other, preventing assets from passing between the estates. This law helps avoid complications and double taxation in cases of simultaneous deaths, such as in accidents. Many states have adopted this act or incorporated its principles into their probate laws.
A set of benefits provided by the U.S. Department of Veterans Affairs (VA) to honorably discharged veterans and their families at the end of life. These benefits may include burial in a national cemetery, a government-issued headstone or marker, a burial flag, and financial allowances to help cover funeral and burial costs. Surviving family members may also receive dependency and indemnity compensation (DIC) or death pension benefits. Eligibility and specific benefits depend on the veteran's service record and circumstances.
Will
Will Contest
A legal challenge brought by an interested party, such as a beneficiary or heir, to dispute the validity of a will. Common grounds for a will contest include allegations of undue influence, fraud, lack of testamentary capacity, or improper execution. Will contests are resolved in probate court, and if successful, the will may be invalidated in whole or in part, with the estate distributed according to a previous will or state intestacy laws.