Estate Planning Terminology

J. Emery Barker

Affidavit of Collection

A means of handling small estates (less than $50,000) by affidavit.

Asset

Anything, tangible or intangible, a person owns that has value

Beneficiary

A person designated to receive assets from a will or trust

Beneficiary Deed

A deed to convey property to another on the death of the owner

Bequest

A gift of personal property by will

Certificate of Trust

A certificate containing information about a Trust which others may rely upon

Certified Private Fiduciary

An individual licensed by the Arizona Supreme Court to serve as Personal Representative, Guardian, Conservator or Trustee

Charitable Remainder Trust

One popular variety of several types of trusts established under the Internal Revenue Code whereby an individual donates prescribed sums to charities and receives certain tax benefits.

Codicil

A legal document which changes an existing will, without revoking it.

Conservator

An individual appointed by the Court to care for the financial affairs of an incapacitated living person

Custodian

An individual who holds assets for a child beneficiary until the child attains majority.

Decedent

The person who has died

Devise

A gift of real property by will

Estate

All the assets possessed by an individual at the time of death

Estate Planning

The process and plan by which an individual plans to distribute his/her assets at death

Estate Tax

the tax imposed on the transfer of assets from a decedent to his/her heirs

Executor (male) Executrix (female), in Arizona: Personal Representative

The individual named in a will and appointed by a court to settle the estate of a deceased

Fiduciary

A trusted individual,such as a Trustee or an Executor, who acts primarily on behalf of a beneficiary,

Generation Skipping Transfer

A transfer of assets in a trust that is designed to provide benefits for beneficiaries who are two or more generations younger than the deceased

Grantor

The person who creates the Trust

Guardian

The person named to care for an incapacitated person and their personal affairs

Heir

A person who is entitled by law to inherit all or part of an estate of a decedent or an ancester

Holographic Will

A will wholly hand written, dated and signed by the Testator

Income Beneficiary

The beneficiary who is entitled to receive the income from a trust

Intervivos Trust

A trust created one or two persons to become valid during their lifetimes. See also: Living Trust

Intestate

The description for someone who dies without having a valid will

Irrevocable Trust

A trust that cannot ordinarily be changed or terminated after it is established

Joint Tenancy Trust

A Deed with two or more owners (Grantees) whereby the real property passes to the last of the owners to survive

Letters Testamentary

Document issued by the probate court giving the Personal Representative authority to administer the estate under the provisions of the decedent's will

Living Trust

A trust into which an individual places all of his/her property during their lifetime, which is distributed upon the death of the individual

per capita

The designation whereby an estate is distributed equally among a group, such as children, who survive the decedent (lit: by the head). The antithesis of per stirpes

Per Stirpes

The designation whereby an estate is distributed equally among a group, and descendants of a deceased member of the group receive that deceased member's share. The antithesis of per capita

Power of Appointment

A right granted to a beneficiary of a trust to designate a gift to another

Power of Attorney

A document in which an individual assigns the authority to another to act as the individual's principal. Powers of attorney can be for specific matters (special power of attorney) or all matters (general power of attorney)

Probate

A court procedure for settling the personal matters of a decedent by establishing the legal transfer of property, by the Personal Representative directly to the beneficiaries.

Personal Representative

A person who is authorized to act on an individual's behalf, such as a trustee or executor

Prudent Investor Rule

A doctrine which provides guidance to investment managers regarding the standards of managing an investment portfolio in a legally satisfactory manner

Qualified Beneficiaries

Named beneficiaries in one generation and their children in the next generation

Remainder Interest

The interest left to a beneficiary after the death of the income beneficiary

Remainderman

The designation of the beneficiary of the remainder interest

Right of Representation

Another term for per stirpes

Revocable Trust

A trust that can be changed after is has been established by the Grantor(s) who set it up

Rule Against Perpetuities

Limits the testator's power to earmark gifts for remote descendants

Self-proved Will

An Arizona witnessed will in which the signatures of the Testator and witnesses has been notarized, and does not require testimony to be admitted to probate

Spendthrift Trust

A Trust which bars the seizure of the Trust’s assets by a beneficiary’s creditors

Sprinkling Trust

A Trust which allows the Trustee to determine the manner of distributing principal and/or income among the beneficiaries (also: Spray Trust).

Tangible Personal Property List

A separate signed and dated list of items of personal property which the Personal Representative must follow in distributing the specific property item to those named therein.

Testamentary Trust

A trust created under a will which comes into existence upon the death of an individual.

Testator (Testatrix)

The name given a male (female) person who makes a will

Testatrix

The name given a female person who makes a will

Trust

A document which provides that one party (Trustee) can hold property for the benefit on another (beneficiary)

Trust Declaration or Instrument

The document defining the nature and duration of a trust, the powers of the trustee and the trust's beneficiaries.

Trust Protector

The name given a designated person in a Trust who may direct the Trustee to do certain specifically designated acts with the Trust property

Trustee

The individual or entity that holds, manages and invests the assets of a Trust for a beneficiary

Unitrust Rules

Allows distributions of discrete percentages from a trust, as opposed to just distributions of income.

Will

An individual's written declaration regarding the disposal or distribution of his/her property after death.

Additional Articles:

Avoiding the Pitfalls of Estate Planning
Do You Want the State of Arizona to Write Your Will?
Estate Planning - Recent Cases Of Interest (2008)
Estate Planning Checklist
Legislature Dramatically Revises Arizona Trust Law
Retirement Plans at Work
Taxing Questions: An Essential Overview of the 2001 Tax Relief Act
The Importance of Powers of Attorney
When Mercy Meets Justice – An Overview of Arizona's Adult Protective Services Act (APSA)
Where Should You Keep Your Will?
Wills and Trusts – Some Frequently Asked Questions