Estate Planning Terms A–Z with Definitions and Examples
This glossary is designed to help families understand the language commonly used in estate planning, probate, trusts, legacy planning, and wealth transfer.
A
Administrator
A person appointed by the court to manage an estate when someone dies without a valid will.
Example: Sarah died without a will. The court appointed her son as the administrator of her estate.
Advance Directive
A legal document that states your healthcare wishes if you become unable to communicate.
Example: Mary's advance directive specified that she did not want life support if recovery was unlikely.
Asset
Anything of value that a person owns.
Example: A home, bank account, vehicle, life insurance policy, and investments are all assets.
Attorney-in-Fact
A person authorized through a power of attorney to act on another person's behalf.
Example: Robert named his daughter as attorney-in-fact to handle financial matters while he was overseas.
B
Beneficiary
A person, trust, charity, or organization designated to receive assets.
Example: Lisa named her grandchildren as beneficiaries of her life insurance policy.
Bequest
A gift left to someone through a will.
Example: John's will included a bequest of $10,000 to his church.
Bond
Insurance that protects beneficiaries against misconduct by an executor or administrator.
Example: The court required the executor to obtain a bond before administering the estate.
C
Conservator
A court-appointed individual who manages finances for someone unable to do so.
Example: A conservator was appointed to manage an elderly woman's investments after dementia made financial decisions difficult.
Community Property
Property jointly owned by spouses in certain states.
Example: In a community property state, income earned during marriage may belong equally to both spouses.
Contingent Beneficiary
The backup beneficiary if the primary beneficiary dies first.
Example: Mark named his wife as primary beneficiary and his daughter as contingent beneficiary.
Codicil
An amendment to an existing will.
Example: Rather than creating a new will, Susan used a codicil to add a charitable gift.
D
Durable Power of Attorney
A power of attorney that remains effective even if the person becomes incapacitated.
Example: After a stroke, James's daughter was able to pay bills under his durable power of attorney.
Decedent
The person who has died.
Example: The decedent's estate included real estate and retirement accounts.
Distribution
The transfer of assets to heirs or beneficiaries.
Example: Estate funds were distributed according to the will.
E
Estate
Everything a person owns at death.
Example: The estate included a house, savings accounts, and life insurance proceeds.
Estate Planning
The process of organizing assets, documents, and instructions for future incapacity or death.
Example: Creating a will, trust, and powers of attorney are part of estate planning.
Executor
The person named in a will to carry out the instructions of the deceased.
Example: David named his oldest daughter as executor of his estate.
F
Fiduciary
Someone legally obligated to act in another person's best interests.
Example: Trustees and executors serve as fiduciaries.
Final Wishes
Instructions regarding funeral arrangements, burial, memorial services, and personal preferences.
Example: Karen documented her final wishes so her children would not have to guess.
G
Grantor
The person who creates and funds a trust.
Example: Michael was the grantor of his revocable living trust.
Guardian
A person legally appointed to care for a minor child or incapacitated adult.
Example: Parents often name a guardian for minor children in their wills.
Guarantor
A person who agrees to be responsible for another person's debt or obligation if that person fails to pay.
Example: A father served as guarantor on his son's apartment lease. If the son failed to pay, the father would become responsible.
H
Heir
A person legally entitled to inherit property under state law.
Example: Without a will, the decedent's children became heirs of the estate.
HIPAA Authorization
A document allowing designated individuals access to medical records.
Example: Jennifer signed a HIPAA authorization so her son could communicate with her doctors.
Homestead
A primary residence that may receive legal protections from creditors.
Example: Certain states offer homestead exemptions for homeowners.
I
Incapacity
The inability to make or communicate decisions.
Example: Dementia may lead to legal incapacity.
Inheritance
Assets received from someone who has died.
Example: The grandchildren received an inheritance from their grandfather's estate.
Intestate
Dying without a valid will.
Example: Because Tom died intestate, state law determined who inherited his assets.
J
Joint Tenancy with Right of Survivorship
Ownership arrangement where property automatically passes to surviving owners.
Example: When one spouse died, ownership of the home automatically transferred to the surviving spouse.
K
Kin
Family members related by blood, marriage, or adoption.
Example: The court identified the decedent's next of kin.
L
Last Will and Testament
A legal document directing how assets should be distributed after death.
Example: Angela's will named guardians for her grandchildren and distributed assets equally.
Living Trust
A trust created during a person's lifetime.
Example: Assets transferred into a living trust may avoid probate.
M
Medical Power of Attorney
A document appointing someone to make healthcare decisions.
Example: Linda named her sister to make medical decisions if she became unconscious.
Minor Beneficiary
A beneficiary who has not reached legal adulthood.
Example: The trust held funds for a minor beneficiary until age 25.
N
Next of Kin
The closest living relatives.
Example: The hospital contacted the patient's next of kin.
O
Omitted Heir
A child or heir unintentionally left out of a will.
Example: State law may provide protections for an omitted heir.
P
Payable-on-Death (POD)
A designation allowing bank accounts to transfer directly to beneficiaries.
Example: The savings account transferred immediately through its POD designation.
Per Stirpes
Distribution method where descendants inherit their deceased parent's share.
Example: If a child dies before the parent, that child's children inherit the share.
Personal Representative
A general term for someone managing an estate.
Example: The executor serves as the estate's personal representative.
Probate
The legal process of administering an estate after death.
Example: The estate entered probate because assets were not titled in a trust.
Power of Attorney
A legal document authorizing someone to act for another person.
Example: A power of attorney allowed the daughter to manage finances.
Q
Qualified Disclaimer
A legal refusal to accept inherited assets.
Example: A son disclaimed part of his inheritance so it could pass to his children.
R
Residuary Estate
Assets remaining after debts, taxes, and specific gifts are distributed.
Example: The residuary estate was divided among four children.
Revocable Living Trust
A trust that can be changed or revoked during the grantor's lifetime.
Example: Patricia updated her revocable living trust after purchasing a new home.
S
Settlor
Another term for the grantor or creator of a trust.
Example: The settlor established a trust for future generations.
Successor Trustee
The person who takes over management of a trust when the original trustee can no longer serve.
Example: Upon incapacity, the successor trustee began managing trust assets.
Successor Executor
A backup executor who serves if the primary executor cannot or will not act.
Example: Angela named her daughter as executor and her son as successor executor.
Spendthrift Provision
A trust clause protecting beneficiaries from creditors and poor financial decisions.
Example: The spendthrift provision prevented beneficiaries from assigning future trust payments.
T
Testator
A person who creates and signs a will.
Example: The testator clearly stated how family property should be distributed.
Testamentary Trust
A trust created through a will that becomes effective after death.
Example: A testamentary trust was established for minor children.
Title
Legal ownership of property.
Example: The house title was transferred into the trust.
Transfer-on-Death Deed (TODD)
A deed allowing real estate to pass directly to a beneficiary upon death.
Example: The family home passed through a TODD instead of probate.
Trustee
The person or institution responsible for managing trust assets.
Example: The trustee distributed income according to trust instructions.
Trust
A legal arrangement allowing one party to hold and manage assets for another.
Example: A trust helped avoid probate and provided privacy.
Trustor
Another term for the grantor or settlor.
Example: The trustor transferred ownership of assets into the trust.
U
Uniform Transfer to Minors Act (UTMA)
A legal structure allowing assets to be held for minors.
Example: Grandparents opened a UTMA account for a grandchild.
V
Vesting
The point at which ownership rights become absolute.
Example: Beneficiaries became vested owners after trust conditions were met.
W
Ward
A person under guardianship.
Example: The court appointed a guardian to care for the ward.
Will
A legal document directing asset distribution and guardianship decisions.
Example: The will named an executor and guardians for minor children.
Y
Yearly Exclusion Gift
The amount a person can gift annually without triggering gift tax reporting requirements.
Example: A grandmother used the yearly exclusion gift to transfer wealth to grandchildren.
Z
Zero-Tax Basis Step-Up
A tax concept where inherited assets receive a new cost basis at the owner's death.
Example: The heirs inherited stock with a stepped-up basis, reducing capital gains taxes.
Key Legacy Roles Every Family Should Know
| Role | Purpose |
|---|---|
| Testator | Creates the will |
| Executor | Carries out the will |
| Successor Executor | Backup executor |
| Trustee | Manages a trust |
| Successor Trustee | Backup trustee |
| Beneficiary | Receives assets |
| Heir | Inherits under state law |
| Guardian | Cares for children |
| Attorney-in-Fact | Acts under power of attorney |
| Guarantor | Guarantees debt obligations |
| Grantor / Settlor / Trustor | Creates the trust |
| Fiduciary | Must act in another's best interest |
Educational content only. HeirForm does not provide legal advice. Consult a licensed estate planning attorney before using any document.