Estate Planning Glossary

When a specific item left in a will no longer exists at death (it was sold or given away), so the gift simply fails.

The person a court appoints to settle an estate when there's no will or no named executor — the court-appointed equivalent of an executor.

An umbrella term for documents that state your medical wishes in advance — typically a living will plus a healthcare power of attorney.

A second probate proceeding in another state, needed when the deceased owned real estate outside their home state.

The amount you can give each person every year with no gift-tax filing or impact on your lifetime exemption (it rises over time).

A financial product that pays out income over time, often in retirement, in exchange for a lump sum or series of payments.

The person you authorize to act for you under a power of attorney. They need not be a lawyer.

A person or organization named to receive money or property — from a will, a trust, a life insurance policy, or a retirement account.

The named beneficiary recorded directly on an account (401(k), IRA, life insurance, payable-on-death bank account). It passes the asset directly and overrides your will.

A gift of personal property or money left to someone in a will.

A trust used by married couples to pass assets to the surviving spouse while reducing estate tax on the second death.

A savings component inside permanent life insurance that grows over time and can be borrowed against.

A trust that benefits a charity, often providing income to you or your heirs for a period along with tax advantages.

A signed, witnessed amendment to an existing will, used to make changes without rewriting the whole document.

In nine states, most property acquired during a marriage is owned 50/50 by both spouses, which affects how it's inherited and taxed.

A court arrangement giving someone authority over the finances (and sometimes care) of an adult who can no longer manage on their own. A POA set up in advance usually avoids it.

The backup beneficiary who inherits only if the primary beneficiary has died or can't receive the asset.

The amount a life insurance policy pays to the beneficiaries when the insured person dies.

The legal term for the person who has died and whose estate is being settled.

Online accounts and digital property — email, photos, social media, crypto, domains — that need a plan for access after death.

A medical order instructing healthcare providers not to perform CPR if your heart or breathing stops.

A power of attorney that stays in effect even after you become incapacitated — the kind most estate plans use.

A surviving spouse's legal right to claim a minimum portion of the estate (often one-third to one-half), even if the will leaves them less.

When someone dies with no will and no findable heirs, their property passes (escheats) to the state.

Everything a person owns at death — money, property, investments, and possessions, minus debts. You have an estate even if you're not wealthy.

A tax on the total value of a deceased person's estate, paid by the estate before assets are distributed. Only estates above a high threshold owe it.

The person named in a will to carry out its instructions — gathering assets, paying debts, and distributing the estate. Sometimes called a personal representative.

Someone legally required to act in another person's best interest — an executor, trustee, or agent under a power of attorney all owe fiduciary duties.

A small whole-life policy (often $5,000–$25,000) meant to cover a funeral and final bills. Also called burial insurance.

An extra federal tax on assets passed to grandchildren or later generations, designed to prevent skipping a layer of estate tax.

A trust that passes assets to grandchildren (skipping your children) to reduce the layers of estate tax across generations.

A federal tax on large gifts made during your lifetime. Most people never owe it thanks to the annual exclusion and a high lifetime exemption.

The person who creates a trust and puts assets into it. Also called the settlor or trustor.

Life insurance that asks no health questions and can't turn you down — but costs more and usually has a 2–3 year waiting period.

A person appointed to care for someone who can't care for themselves — most often minor children named in a parent's will, or an incapacitated adult appointed by a court.

The person you authorize to make medical decisions for you when you can't. Also called a healthcare agent or healthcare power of attorney.

A person legally entitled to inherit when someone dies — under a will, or under state law if there's no will.

A signed release letting named people access your medical information — without it, doctors may not share details even with family.

A will written entirely by hand and signed by the person making it. Valid in some states, but easier to challenge.

A protection in many states that shields some or all of a primary home's value from creditors and can pass it to a surviving spouse.

An irrevocable trust that owns a life insurance policy so the payout stays outside your taxable estate.

A streamlined form of probate — used widely in Texas and some other states — in which the executor settles the estate with minimal court supervision, keeping costs and delays low.

A tax paid by the person who inherits, based on what they receive. It exists in only a handful of US states and is separate from estate tax.

Dying without a valid will. When this happens, state law (the rules of intestacy) decides who inherits, not you.

A trust that generally can't be changed or revoked once created. In exchange for that rigidity, it can offer asset protection and tax benefits.

A way of co-owning property where, when one owner dies, their share passes automatically to the surviving owner(s) — outside of probate.

A deed that lets an owner keep full control of their real estate during life — including the right to sell it — while naming a beneficiary who receives it automatically at death, without probate. Recognized in a handful of states, including Florida and Texas.

The formal name for a will — the legal document stating who gets your property and who carries out your wishes after death.

An informal, non-legal note left alongside a will covering practical details — account locations, passwords guidance, funeral wishes, and personal messages.

The court document authorizing an administrator to settle an estate when there is no will.

The court document that officially authorizes an executor to act on behalf of an estate.

A right to use property (usually a home) for the rest of your life, after which it passes automatically to a named 'remainderman.'

The total amount you can pass tax-free during life and at death before federal estate/gift tax applies. It's high, so most estates owe nothing.

A trust you create and control while alive; assets titled into it pass to your beneficiaries without probate. You can change or cancel it any time.

A document recording your wishes about end-of-life medical care (life support, resuscitation, comfort care) for when you can't speak for yourself.

A simplified Texas probate that admits a will purely to transfer title, with no executor or administration — available when the estate has no unpaid debts other than those secured by real estate.

A person's closest living relatives, who typically inherit under state law when there is no will.

A will or trust provision that disinherits anyone who challenges it in court and loses. Also called an in terrorem clause.

A designation on a bank account that passes the balance directly to a named person at death, skipping probate.

A way of dividing an inheritance so that if a beneficiary dies before you, their share passes down to their children.

The general term for whoever settles an estate — an executor (named in a will) or an administrator (appointed by a court).

A will used alongside a living trust that 'pours' any assets you forgot to put in the trust into it at death.

A document that lets someone you choose act on your behalf — handling finances (financial POA) or medical decisions (healthcare POA) — while you're alive but unable to act yourself.

The court-supervised process of settling someone's estate after they die — validating the will, paying debts, and distributing what's left to the heirs.

A trust often used in second marriages: it provides for a surviving spouse for life, then directs what's left to beneficiaries the first spouse chose (such as their own children).

The person who receives property after a life estate ends — i.e., after the life tenant dies.

Whatever is left of an estate after specific gifts, debts, and expenses are paid. A will's 'residuary clause' says who receives it.

A notarized statement signed by the will's witnesses so the court can accept the will without tracking them down later.

A simplified, faster alternative to full probate available in most states when an estate's value falls under a set threshold.

A trust that holds assets for a person with a disability without disqualifying them from means-tested government benefits.

A trust that limits a beneficiary's access to the funds and shields them from the beneficiary's creditors — useful for heirs who struggle with money.

A power of attorney that only takes effect ('springs' into action) when a specified event occurs, usually your incapacity.

When you inherit an asset, its tax 'basis' resets to its value at the owner's death — often wiping out capital-gains tax on prior growth.

A faster, cheaper alternative to full (formal) probate — used in Florida and other states — available for smaller estates or when enough time has passed since the death. No personal representative is appointed.

A form of joint ownership for married couples (in some states) with survivorship rights and added creditor protection.

Co-ownership where each owner has a distinct share that passes through their own will or estate at death — it does NOT automatically go to the co-owner.

Life insurance that covers you for a set period (e.g., 20 years) and pays out only if you die during it. The cheapest way to get a large death benefit.

The mental ability to make a valid will — understanding what you own and who your heirs are. Lack of it is a common ground for contesting a will.

A trust created by a will that only comes into existence after death — often used to hold an inheritance for minor children until they reach a set age.

The person who makes a will.

Like payable-on-death, but for investment/brokerage accounts (and, in some states, vehicles and real estate). Passes directly to a named beneficiary.

The person or institution that manages a trust's assets and carries out its terms for the beneficiaries.

Improper pressure on someone making a will or gift, overriding their free choice — another common reason wills get challenged.

Permanent life insurance that lasts your whole life and builds cash value, at a much higher premium than term.