Estate Planning & End-of Life Glossary

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.

See Advance Directives

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.

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.

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.

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.

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.

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.

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.

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.

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.

A trust designed to protect assets from creditors and legal judgments by placing them in a legally protected entity.

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.

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.

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.

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.

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 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.

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.

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.

A formal contract between a caregiver and a recipient (or their family) outlining services, compensation, and terms of care.

Physical, emotional, and mental exhaustion experienced by individuals providing prolonged care for a loved one.

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.

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.

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.

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.

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.

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.

A person designated to manage digital assets (e.g., email accounts, social media, online subscriptions) after someone’s death.

The collection of a person’s digital assets and online presence that remains after their death, including social media accounts and digital files.

A legal refusal to accept an inheritance, allowing the disclaimed assets to pass to the next designated beneficiary.

A type of trust that allows a surviving spouse to disclaim (refuse) some assets, which then transfer to the trust for tax planning purposes.

The act of intentionally excluding a person from inheriting assets through a will or 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.

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.

The portion of an estate that a surviving spouse has the right to claim, even if they were left out of the will.

Everything you own and everything you owe at the time of your death. It includes money, real estate, intellectual property such as patents, personal property like household items, financial accounts, and any money that others owe to you. It also takes into account your debts and obligations, which reduce the overall value of the estate.

A person appointed by the court to manage an estate if there is no valid will. (They serve a similar role as an executor.)

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 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.

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).

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.

The ability of an estate to cover its debts and expenses with liquid assets.

The process of arranging for the orderly transfer of one's assets upon death to minimize taxes and ensure the desired distribution of assets.

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.

A bond purchased by an executor to ensure the proper administration of an estate and protect beneficiaries from potential misconduct or negligence.

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.

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.

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.

The legal obligation of a fiduciary (e.g., executor, trustee) to act in the best interests of the beneficiaries and manage their assets responsibly.

See Funeral Insurance

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.

The process of organizing and managing one’s finances, including investments, taxes, retirement, and estate planning, to achieve personal financial goals.

See Durable Power of Attorney for Finances

A person appointed by the court to make personal or financial decisions for a minor or for an adult who is unable to make those decisions. Even if you have “guardian” mentioned under wills, it may deserve its own definition so readers understand court-appointed authority.

A trust that allows assets to pass directly to grandchildren or later generations, bypassing the children, while avoiding estate taxes on the intervening generations.

A federal tax imposed on the transfer of property or assets to another person during the giver’s lifetime, exceeding certain annual exclusion limits.

Professional therapy focused on helping individuals cope with the emotional and psychological effects of loss.

The practice of writing about feelings and memories related to a loss as a therapeutic way to process grief.

Events, memories, or objects that evoke strong emotions related to a loss, often unexpectedly.

A person appointed by the court to care for a minor child or incapacitated adult, making decisions about their well-being, education, and health.

Legal authority granted to a person to make decisions on behalf of an incapacitated individual.

Techniques used to transfer assets to heirs during the donor's lifetime, often with tax benefits.

A tax-advantaged savings account that allows individuals to set aside money for medical expenses, available to those enrolled in high-deductible health plans.

The process of designating and passing down sentimental or valuable family items to heirs.

A legal document that allows a designated person to access your protected health information under the Health Insurance Portability and Accountability Act (HIPAA).

Unable to make decisions or manage one's affairs due to physical or mental impairment.

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.

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.

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.

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.

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.

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.

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.

An individual granted the right to use and occupy a property for their lifetime, after which the property passes to a remainderman.

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.

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.

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.

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.

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.

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.

A general term for your closest living relatives. In estate law, it determines who inherits if you die without a will, following an order set by state law (spouse, children, parents, siblings, and so on). In medical situations, if you have not named a health care agent, state law may give decision-making authority to your next of kin in a similar order.

Assets that transfer directly to a beneficiary outside of probate, such as life insurance, retirement accounts with named beneficiaries, or joint property with rights of survivorship.

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.

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.

The person appointed to handle the affairs of someone who has died. The title can vary depending on the situation. If there is a will, the personal representative is usually called the executor. If there is no will, the court appoints an administrator to serve as the personal representative.

Legal arrangements to designate a caretaker for a pet if the owner becomes unable to provide care.

Ways to honor a deceased pet, such as through keepsakes, urns, or memorial ceremonies.

A legal arrangement to set aside funds and designate a caretaker for a pet’s ongoing care after the owner’s death.

A will that directs any remaining assets not included in a trust to be transferred to the trust upon death.

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 court-supervised process that determines whether a will is valid and supervises the executor in carrying out the testator’s legal and financial wishes. Usually this includes a court hearing to establish the testator's passing and residency, the genuineness of the will, its conformance with statutory requirements for its execution, and the competency of the testator at the time the will was made. During probate, the court will also decide on whether any valid challenges to the will exist.

The legal sequence that determines who has the right to act or make decisions if you have not named someone through a will, Power of Attorney, or advance directive. Each state sets its own rules, but priority lists usually start with a spouse, then adult children, then parents, then siblings, and move outward to more distant relatives. This sequence is sometimes described in everyday terms as your “next of kin,” although the exact order varies by state and by context (medical, financial, or estate-related).

Property that was owned solely in the decedent’s name that must pass through the probate court before being transferred to heirs or beneficiaries.

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.

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.

A loan for seniors that allows them to convert home equity into cash without monthly payments, repayable when they move, sell, or pass away.

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.

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.

Devices and systems designed to enhance safety, convenience, and independence for seniors living at home.

A provision in a trust that protects a beneficiary’s inheritance from creditors or poor financial decisions.

A power of attorney that becomes effective only upon the occurrence of a specified event, such as incapacitation.

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.

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.

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.

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.

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.

A form of ownership where each owner has a distinct share that can be passed through their will or trust.

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.

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.

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.

Instructions you give a bank, brokerage, or similar institution that allow an account or certain property to pass directly to named beneficiaries when you die. These designations bypass probate but are still included in the taxable estate.

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.

The process of moving assets into a trust. That means changing the legal ownership of property, such as a home, bank account, or investment, from your name into the name of the trust. If you do not take this step, your trust is mostly just a stack of papers with no control over anything.

A third-party individual or entity appointed to oversee a trust, ensuring that the trustee acts in the best interest of the beneficiaries.

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.

A trust designed to maximize the use of both spouses' estate tax exemptions.

See Last Will & Testament.

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.