Learning Center
Estate Planning Glossary
Understand the words you may come across as you make a plan, help a loved one, or carry out someone’s wishes. Choose a letter to explore the terms.
Browse terms A–Z
A
8 terms
Accounting
A record of money and property received, managed, and distributed by a person handling an estate or trust. The information required and who may request it depend on the document and applicable law.
Administrator
A person appointed by a court to manage a deceased person’s estate, often when there is no will or no named executor can serve.
Advance directive
A document used to communicate health care wishes or name someone to make health care decisions if you cannot speak for yourself. Names and requirements vary by state.
Agent
A person authorized to act for someone else. In a power of attorney, the document and applicable law define the agent’s authority.
Amendment
A change to an existing document. A trust amendment changes the trust according to its terms and applicable law; a change to a will generally requires a properly executed codicil or new will.
Ancillary probate
A probate proceeding in a state other than the deceased person’s primary state of residence, sometimes needed for property located there.
Asset
Something of value that a person or entity owns, such as a bank account, home, investment, or personal belonging.
Attorney-in-fact
Another name for an agent appointed under a power of attorney. An attorney-in-fact does not have to be a lawyer.
B
3 terms
Beneficiary
A person or organization designated to receive property or benefits, for example under a will, trust, insurance policy, or account.
Beneficiary designation
An instruction on an account, policy, or plan naming who should receive benefits at the owner’s death. The governing contract and applicable law affect how the designation works.
How beneficiary designations work →Bequest
A gift of property made through a will.
C
7 terms
Capacity
The legal ability to make a particular decision or take a particular action. The standard can differ depending on the decision and state law.
Co-trustee
A person or institution serving as trustee alongside another trustee. The trust and applicable law govern whether they may act separately or must act together.
Codicil
A document that changes a will. It generally must be signed with the formalities required by state law.
Community property
A system of property ownership used in some states under which certain property acquired during marriage is generally treated as belonging to both spouses. Rules and exceptions vary by state.
Conservator
A person appointed by a court to manage property or financial affairs for someone who cannot manage them. The title and responsibilities vary by state.
Contingent beneficiary
A backup beneficiary who may receive property if the primary beneficiary cannot or does not receive it, subject to the applicable document or account terms.
Creditor
A person or organization to whom money is owed. An estate’s representative must address valid debts and claims under applicable law.
D
7 terms
Decedent
A person who has died.
Deed
A legal document used to transfer an interest in real estate. Signing, delivery, and recording requirements depend on state and local law.
Descendant
A person in someone’s direct family line, such as a child or grandchild. The meaning in a particular document can depend on its wording and applicable law.
Digital assets
Electronic records and online property or accounts, such as digital photos, email, and online financial accounts. Access depends on applicable law, account terms, and available permissions.
Disclaimer
A legal refusal to accept an inheritance or other property interest. The effect and requirements depend on the circumstances and applicable law.
Distribution
A transfer of money or property from an estate or trust to a recipient, according to the governing document and applicable law.
Durable power of attorney
A power of attorney that remains effective if the person who made it becomes incapacitated, subject to its terms and applicable state law.
Learn about powers of attorney →E
5 terms
Estate
The property and interests a person leaves at death. The term can have different meanings for probate, tax, and other purposes.
Estate administration
The process of gathering and managing a deceased person’s property, addressing debts and expenses, and distributing property to the proper recipients.
Estate plan
A coordinated set of decisions and documents addressing matters such as decision-making during incapacity and the management and transfer of property at death.
Estate tax
A tax imposed on the transfer of a deceased person’s estate when applicable. Federal and state rules differ, and not every estate owes estate tax.
Executor
The person named in a will to administer the estate, typically after appointment by the appropriate court. Some states use the term personal representative.
Choosing an executor →F
3 terms
Fiduciary
A person or institution with a legal duty to act for another’s benefit in a role of trust, such as an executor, trustee, or financial agent.
Financial power of attorney
A document authorizing an agent to handle specified financial or property matters for the person making it. Its scope and effective date depend on the document and state law.
Funding a trust
The process of transferring property to a trust or arranging for it to receive property, as appropriate for each asset. The steps depend on the type of asset and applicable law.
How to fund a living trust →G
3 terms
Gift
A voluntary transfer of property without receiving full value in return. A gift may have legal or tax consequences depending on the circumstances.
Grantor
A person who creates or transfers property to a trust. Depending on the context, this person may also be called the settlor or trustmaker.
Guardian
A person appointed or recognized under applicable law to care for a minor or an adult who needs assistance. The role and terminology vary by state.
H
4 terms
Health care agent
A person chosen to make health care decisions for someone else when authorized under a health care directive and applicable law. Also called a health care proxy in some states.
Health care power of attorney
A document naming a person to make health care decisions when the person making the document cannot do so, subject to its terms and state law.
Heir
A person entitled to inherit under the applicable law when someone dies without a valid will. An heir may or may not be a named beneficiary.
HIPAA authorization
A written permission allowing specified health information to be disclosed to designated people or organizations, subject to applicable privacy rules.
I
6 terms
Incapacity
A condition in which a person lacks the ability to make or communicate certain decisions, as defined for the relevant purpose by a document or applicable law.
Inheritance
Money, property, or another interest received from someone who has died.
Inheritance tax
A tax imposed by certain states on some transfers received from a deceased person. Whether it applies can depend on the recipient and other state-specific rules.
Intestate
Having died without a valid will that disposes of the relevant property. State law determines who receives property subject to intestacy rules.
Inventory
A list of property and its estimated or reported value prepared for an estate or trust. Filing or disclosure requirements vary by state and situation.
Irrevocable trust
A trust that generally cannot be revoked by its creator. Changes may still be possible in some circumstances under the trust’s terms or applicable law.
J
1 term
Joint tenancy with right of survivorship
A form of shared ownership under which a deceased owner’s interest generally passes to the surviving joint owner or owners. State law and the ownership documents matter.
K
No terms are currently listed for this letter.
L
5 terms
Last will and testament
A legal document stating how a person wants property subject to the will handled after death and often naming an executor and a guardian for minor children. Validity requirements vary by state.
Letter of instruction
An informal document containing practical information or wishes for loved ones or a representative. It generally does not replace a legally valid will or other formal document.
Life estate
An ownership interest that generally gives someone the right to use property for a person’s lifetime, after which the remaining interest passes according to the governing document and law.
Living trust
A trust created during a person’s lifetime. A living trust may be revocable or irrevocable, depending on its terms.
Living will
A type of advance directive that records a person’s wishes about medical treatment in circumstances described by the document and state law. It is different from a last will.
Learn about living wills →M
1 term
Minor
A person who has not reached the age of legal adulthood under applicable law. The age and the rules for particular purposes vary by state.
N
2 terms
No-contest clause
A provision intended to discourage certain challenges to a will or trust by affecting a challenger’s share. Whether and how it is enforced varies by state and circumstance.
Notary public
A person authorized by law to perform certain acts, including verifying signatures or identities. Notarization requirements for estate planning documents vary by state.
O
No terms are currently listed for this letter.
P
11 terms
Payable on death (POD)
An account designation that generally directs the institution to pay the remaining account balance to a named beneficiary at the owner’s death, subject to the account terms and applicable law.
Per capita
A method of dividing property among people in a described group. Its precise effect depends on the document’s wording and applicable law.
Per stirpes
A method of distributing property by family branch. A deceased person’s share may pass to that person’s descendants, depending on the document and applicable law.
Personal property
Property other than real estate, such as furniture, vehicles, jewelry, and financial assets. Categories and rules may differ by context.
Personal property memorandum
A separate written list used in some estate plans to identify recipients for certain personal belongings. Whether it can be legally binding and what it may cover depend on state law and the will.
Personal representative
A person appointed to administer a deceased person’s estate. Depending on the state and circumstances, this person may be called an executor or administrator.
Pour-over will
A will that directs certain property remaining in the estate at death to an existing trust. Property passing under the will may still require probate.
Learn about pour-over wills →Power of attorney
A document that gives an agent authority to act for another person in matters described in the document. A financial power of attorney generally ends when the person who made it dies.
Principal
In a power of attorney, the person who grants authority to an agent. In a trust, principal can also mean the property held in the trust, as distinguished from income.
Probate
A court-supervised process for administering a deceased person’s estate, including determining the validity of a will when applicable. Procedures and the property involved vary by state.
A guide to probate →Probate estate
Property subject to administration through the probate process. It may differ from the property counted for tax purposes or property passing directly to a named beneficiary.
Q
1 term
Qualified disclaimer
A refusal to accept an interest in property that meets specific requirements under federal tax law. State law and the facts also matter.
R
5 terms
Real property
Land and interests in land, generally including buildings attached to it. The rights associated with a particular property interest depend on state law.
Remainder beneficiary
A person or organization entitled to receive a remaining interest in trust property after an earlier interest ends, as provided by the trust.
Residuary estate
The property remaining in an estate after debts, expenses, and any other distributions required before the residue have been addressed.
Revocable living trust
A trust created during life that its creator generally may change or revoke while they have capacity, subject to the trust’s terms and applicable law.
How a living trust works →Revocation
The act of canceling or withdrawing a document or authority. The required steps depend on the type of document and applicable law.
S
5 terms
Settlor
A person who creates a trust. Also commonly called the grantor or trustmaker.
Special needs trust
A trust designed to provide for a person with a disability while taking applicable benefit-program rules into account. Requirements are complex and depend on the type of trust and the person’s circumstances.
Springing power of attorney
A power of attorney that becomes effective when a specified event or condition occurs, such as a determination of incapacity, if permitted under applicable law.
Successor trustee
A person or institution named to take over as trustee when the current trustee can no longer serve or another condition in the trust is met.
When a successor trustee takes over →Survivorship
A feature of some forms of ownership under which a deceased owner’s interest passes to a surviving owner. The result depends on how the property is titled and applicable law.
T
8 terms
Tenancy in common
A form of shared ownership in which each owner holds an interest that generally does not automatically pass to the other owners at death. State law and the ownership documents govern.
Testamentary trust
A trust created under a will that generally takes effect after the will maker’s death, subject to the will and applicable law.
Testator
A person who makes a will.
Transfer on death (TOD)
A designation that generally directs an eligible asset to a named beneficiary at the owner’s death. Availability and effect depend on the asset, governing terms, and state law.
Trust
A legal arrangement in which a trustee holds and manages property for the benefit of one or more beneficiaries under the trust’s terms and applicable law.
Trust agreement
The document that sets out a trust’s terms, including who manages trust property and how it is to be used or distributed.
Trustee
A person or institution responsible for managing trust property according to the trust’s terms and applicable law.
Trustmaker
A person who creates a trust, also known as a grantor or settlor.
U
2 terms
Unfunded trust
A trust to which no property has been transferred. A trust that holds some property may still need additional funding to carry out the creator’s plan.
Uniform Transfers to Minors Act (UTMA)
A state-law framework that allows a custodian to manage property for a minor until the age specified by applicable law. Rules, including the transfer age, vary by state.
V
1 term
Valid will
A will that meets the legal requirements applicable to it. Requirements for signing, witnesses, and other formalities vary by state.
W
2 terms
Will
A document that directs how property subject to the will should be handled after death and may name an executor and a guardian for minor children. Also called a last will and testament.
Witness
A person who observes a document’s signing or acknowledgment and signs as required. Who may serve and how many witnesses are needed depend on the document and state law.
X
No terms are currently listed for this letter.
Y
No terms are currently listed for this letter.
Z
No terms are currently listed for this letter.
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