Estate Planning Terms
Serving Clients in Bella Vista, Bentonville, Rogers, Springdale, Fayetteville, and all of Northwest Arkansas
Process like probate, only no Last Will & Testament.
Name for the personal representative during administrator.
The amount you can give away in gifts every year, to non-charities, and not pay gift tax.
Applicable Exclusion Amount:
The total amount exempted from Federal gift and estate taxes.
Basically, everything you own. Your home, cars, jewelry, money, …
A person authorized to act for another person. Not necessarily licensed to practice law. Must sign a power of attorney document.
What you paid for an asset
Person receiving the benefit of a trust, life insurance, or other account.
Certificate of Trust:
Shortened version of your Trust that verifies the trust’s existence and outlines the basic powers of the trustee.
An amendment or change to a Last Will and Testament.
In certain states, martial property belongs to the marriage, no matter how titled.
A guardian or protector
Somebody who you owe money to.
Somebody who owes money
A person who has passed away.
children, grandchildren, etc.
Not claiming a gift left in a will
Durable Power of Attorney:
A Power of Attorney that continues to be in force even if you are incapable of making your own decisions.
The process of protecting yourself during your lifetime, and deciding who gets what and how much.
Tax on inheritance
Usually a person named in a Last Will and Testament to handle the probate process.
A document that tells others how and where you want buried. Can range from very simple to the entire ceremony.
person who watches the probate records and preys on the recipients of large inheritances.
Tax on gifts over the annual exclusion.
Person granting. Person putting stuff into a trust.
Disregarded for income tax purposes. The grantor is taxed directly at individual rates. The trust does not file a tax return.
The value of everything you own, not subtracting out debt.
Person appointed by a Judge who has the legal authority to manage the finances and personal interests of another, the ward.
Healthcare Power of Attorney:
Power of attorney for your healthcare decisions
One entitled by law to receive part of your estate.
No longer capable of making rational, informed decisions.
Money, earned or unearned, from all sources.
Dying without a Last Will and Testament.
A trust that is difficult to change or revoke. Occasionally a court may order changes.
Joint Tenancy With Right of Survivorship:
Where multiple own a piece of property and if one deceases, the others automatically get ownership without probate or courts.
Last Will and Testament:
Ownership of property for your lifetime only. The remainder is owned by another person. The ownership ends automatically at death.
A trust established while you are alive.
Advance Directive. Your medical instructions.
Payable on Death:
An account with a beneficiary named.
Person managing probate or administration of an estate.
Method of inheritance.
Pour Over Will:
A Last Will and Testament that “pours” everything into a trust.
Power of Attorney:
A document giving another authority to act for you financially and legally.
Admitting the Last Will and Testament to court, following the instructions in the Will, and distributing the property.
Thing belonging to somebody. A bundle or rights granted by the government.
Property not explicitly given away in a trust or will.
Revocable Living Trust:
A revocable trust created during your lifetime.
Person “Settling” a trust. The person putting stuff into the trust.
Special Needs Trust:
A trust created especially for a person receiving public benefits or who has special needs.
A clause in a trust to protect the assets in the trust from creditors.
Tangible Personal Property:
Things you can touch and move. Does not include cash or money.
Tenancy by the Entirety:
Like joint tenancy with right of survivorship, only for married couples.
Tenancy in Common:
Ownership by more than one person, without any ownership changes at death.
Created in a Last Will and Testament.
A trust created by a Last Will and Testament.
Person creating a Last Will and Testament.
A trust is a three-party agreement between the person putting stuff into trust (the grantor), the person managing the stuff (the trustee), and the person getting the benefit of the stuff (the beneficiary).
Person who is responsible for managing the assets in a trust for the beneficiaries.
A Will is just a set of instructions left for the court to follow. A Will is a written document signed in a manner prescribed by law which disposes of property upon death. It is better than no plan at all, but requires Probate.