The legal jargon used by lawyers, courts, and documents can be confusing sometimes, especially when dealing with the estate of someone who has passed away and the terms included in the estate documents. It’s hard enough sometimes to manage an estate, but when you have to read “testator,” “bequest,” and “per stirpes,” over and over again, it can become overwhelming. 

In order to help you if you are in the process of probating a will, save this list of estate planning terms you should know to your favorites and refer back when you need it.

Of course, if you need the help of an expert, book a consultation today. 

Glossary of Estate Planning Terms

A

Administrator – The person appointed by the Court to administer and settle an estate when the person dies without a will that names an executor or personal representative.

Annual Exclusion – The amount a person may give in a year to each of an unlimited number of recipients free of federal gift taxes. Note that these gifts don’t use any of an individual's federal gift tax exemption amount.

Attorney-in-Fact – The person named as an agent in a Power of Attorney to handle the affairs of another.

B

Beneficiary – A person named in a will to receive property from the Testator.

Bequest – A gift of personal property in a will.

C

Capacity – A requirement for a valid will, the testator’s perception and understanding of the act of making the will and disposing of the property.

Codicil – An addition to a last will and testament. This document has to meet the same execution requirements as any other will.

Conservator – An individual appointed by the court to care for and manage the property of an incapacitated person, in the same way a guardian cares for and manages the property of a minor.

D

Decedent – A person who has died, usually the subject of the probate action.

Descendant – A person’s children, grandchildren, etc., who are related by blood or adoption.

Durable Power of Attorney – A power of attorney that does not terminate upon the incapacity of the person making the power of attorney.

E

Estate – The property left by the decedent. Note that in the context of a document, this can mean something more specific, e.g. “real estate.”

Estate Planning – The process of designing a strategy for the administration of his assets after death, usually including execution of a will, trust agreement, or other documents.

Estate Tax – A tax imposed on a decedent’s transfer of property at death.

Executor – The person named in a will by the Testator to carry out directions and requests in the will, and to pay all debts of the estate.

F

Fiduciary – An individual, bank, or corporation designated to manage money or property for beneficiaries. Fiduciaries include executors and trustees. 

G

Generation-Skipping Transfer Tax – Federal tax on gifts and transfers in trust to or for beneficiaries two or more generations younger than the donor, such as grandchildren. This is imposed when the gift is greater than the exemption for such gifts.

Gift Tax – A tax on lifetime transfers from one person to another that exceeds the gift tax exemption.

Grantor – A person who creates or contributes property to a trust.

Grantor Trust – A trust wherein the grantor retains certain control such that the trust is disregarded for income tax purposes. The grantor is taxed individually on the trust’s income.

Guardian – The person that the law entrusts the custody and control of the estate, person, or both, of an infant, minor, or incompetent person.

H

Health Care Power of Attorney – A document that appoints an individual to make healthcare decisions when the declarant (the person making the power of attorney) is incapacitated.

Heir – A person who is entitled to the property of the decedent under intestate succession.

Holographic – A will that is entirely written and signed by the testator in his own handwriting.

Homestead Exemption – In Tennessee, a right to a life estate of $5,000.00 in homestead; exempt from claims of creditors.

I

Inheritance Tax – A tax on the right to succession to property by legacy, devise, or intestate succession.

Intestate – When a person who has died without a valid and operative will.

Inventory – A full list made by an executor or administrator or administrator of an estate of all assets of the decedent.

Irrevocable Trust – A trust that cannot be terminated or revoked, modified, or amended by the grantor.

Issue – A person’s lineal descendants of all generations.

J

Joint Tenancy – An ownership arrangement in which two or more persons own property with rights of survivorship.

L

Letters Testamentary – Letters granted to a personal representative named in a will allowing them to administer the estate.

Life Beneficiary – An individual who receives income or principal from a trust or similar arrangement for their lifetime.

Life Estate – An interest in property owned by a life beneficiary with the legal right to use the property for his lifetime.

Living Trust – A trust created by an individual during his lifetime. These are usually revocable trusts.

Living Will – A document that gives instruction on an individual’s medical wishes.

M

Marital Deduction – An unlimited federal estate and gift tax deduction for property passing to a spouse. 

N

No-Contest Clause – A clause in a will that disinherits (removes as a beneficiary) anyone who contests the validity or bequests in a will. Note that these aren’t always upheld.

Nuncupative – A will that is not in writing, and exists only when the testator declares his will orally before two disinterested persons, who then write the will down. Can only be up to $1,000.00 and must be declared when the testator is in imminent peril of death.

P

Personal Representative – A term for the executor, administrator, successor, special administrator, or anyone else who performs the same function.

Per Stirpes – Latin for “per branch.” It refers to the distribution of property according to the family tree where descendants take the share that their deceased ancestor would have taken if they were living. Each branch of the family tree receives an equal share of the estate, but if a child is not living, that child’s share is divided equally among their children.

Pour-Over Will – A will used in conjunction with a revocable trust to pass title at death to property not transferred to the trust during life.

Power of Attorney – Authority given by a written document that allows one person to act in another person's place as their agent with respect to some legal and financial matters.

Principal – Property contributed to a trust to generate income and for the benefit of rust beneficiaries.

Probate – The court procedure by which a will is proved to be valid (or invalid).

Property – Anything that can be subject to ownership.

R

Residue – The property left over in an estate after other legacies and devises have been paid and all legal claims against the estate discharged.

Revocable Trust – A trust created during a person’s lifetime, and where the grantor has the right to terminate, revoke, modify, or amend it.

S

Spendthrift Provision – A trust provision that restricts both voluntary and involuntary transfers of a beneficiary’s interest. Usually used to protect assets from creditors.

T

Tangible Personal Property – Property that can be touched and moved.

Tenancy by the Entirety – Joint ownership of real estate between married persons, under which the entire property passes to the survivor when one person dies.

Tenancy in Common – Co-ownership of real estate wherein each person has rights and ownership of an undivided interest in the property.

Testamentary – Referring to an act such as creating a will or other document that becomes effective at death.

Testamentary Trust – A trust created in a will to come into operation after the will has been probated.

Testator – A deceased person who died leaving a valid will.

Trust – An arrangement where property is legally owned and managed by an individual or corporate fiduciary as trustee for the benefit of another.

Trust Instrument – A document executed by a grantor that contains the terms under which the trust property must be managed and distributed.

Trustee – The individual, bank, or trust company designated to hold and administer trust property.