Relevant Terms
Legal Glossary for Estate Planning, Trusts, and Inheritance
Introduction
Understanding the legalese involved in estate planning, trusts, and
inheritance can be a challenge. This glossary provides definitions of
common legal terms you might encounter in this area of law.
Administrator
An individual or entity appointed by a court to manage and distribute the estate of someone who died without a will.
“We should not forget that it will be just as important to our descendants to be prosperous in their time as it is to us to be prosperous in our time.”
Beneficiary
The individual or entity (like a charity) that receives assets or income from an estate, trust, retirement plan, or life insurance policy.
Codicil
A written amendment to a person’s will, which must be signed and witnessed just like a will.
Decedent
The legal term for a person who has died.
Estate
All property and assets owned by an individual at the time of their death.
Executor
The individual or entity nominated in a will to carry out the deceased person’s wishes and distribute the estate.
Grantor (or Settlor)
The person who creates a trust and contributes property to it.
Heir
A person who has a legal right to inherit some or all of the estate of an ancestor who died without leaving a valid will.
Intestate
Dying without leaving a valid will. State law then determines how and to whom the person’s assets are distributed.
Living Will
A written, legal document that spells out medical treatments a person would or wouldn’t want to be used to keep them alive, often used when a person becomes terminally ill or incapacitated.
Probate
The court-supervised process of validating a will, paying debts, and distributing the deceased person’s estate.
Trust
A legal entity that holds property or assets for the person who created it, the grantor, to benefit another, the beneficiary. The trust is managed by a trustee.
Trustee
The person or institution that oversees and manages the assets held in a trust.
Will
A legal document in which a person directs how their estate should be distributed after their death.
Conclusion
Understanding these key terms can help navigate the complexities of estate planning, trusts, and inheritance law. Remember, legal language can be intricate and nuanced, so it’s always beneficial to consult with a legal professional to understand the full implications in your specific situation.