Common Terms & FAQ | Anda Margine

Common Probate and Trust Terms Defined

Navigating probate and trust administration involves a lot of legal terms that can feel overwhelming. This guide is here to simplify those terms, so you can feel confident and informed every step of the way.

Terms	Definitions
Advance Health Care Directive	A legal document that outlines your wishes for medical treatment in case you become unable to make decisions yourself.
Asset Protection Trust	A trust designed to shield assets from creditors or legal claims while ensuring they are passed on to your beneficiaries.
Beneficiary	A person or entity named to receive assets or benefits from a will, trust, or insurance policy.
Blended Family	A family structure where one or both partners have children from previous relationships, creating unique inheritance considerations.
Codicil	A legal amendment to an existing will that allows changes without needing to rewrite the entire document.
Community Property	In certain states, any property acquired during marriage is jointly owned by both spouses and divided equally upon divorce or death.
Conservatorship	A court-appointed role where a person is given the legal authority to manage another person’s finances or personal affairs due to incapacity.
Decedent	A person who has passed away, leaving behind assets and potential legal obligations.
Digital Estate	All online accounts, digital files, and electronic communications that need management or distribution after someone’s death.
Durable Power of Attorney	A legal document allowing someone to make financial or legal decisions on your behalf, even if you become incapacitated.
Estate	Everything a person owns at the time of their death, including real estate, financial accounts, and personal belongings.
Estate Planning	The process of arranging for the transfer of assets and management of legal obligations after death or incapacity.
Estate Tax	A tax imposed on the transfer of a person’s estate if it exceeds a certain threshold.
Executor	The person named in a will to carry out the deceased’s wishes, including distributing assets and managing debts.
Fiduciary	Someone legally obligated to act in another person’s best interest, such as an executor, trustee, or financial advisor.
Generation-Skipping Transfer Tax (GSTT)	A tax applied to transfers made to grandchildren or younger generations, intended to prevent skipping tax obligations.
Guardian	A person legally appointed to care for a minor or an incapacitated adult and make decisions on their behalf.
Heir	A person legally entitled to inherit assets from someone who dies without a will.
Intestate	Dying without a valid will, resulting in the distribution of assets according to state law.
Irrevocable Trust	A trust that, once established, cannot be altered or revoked without the consent of the beneficiaries.
Joint Tenancy	A type of property ownership where two or more people share ownership, and upon the death of one, the other automatically inherits the deceased’s share.
Living Trust	A trust created during a person’s lifetime to manage and distribute assets without the need for probate.
Living Will	A document that outlines a person’s preferences for end-of-life medical care if they cannot communicate their wishes.
Marital Deduction	A tax deduction that allows a spouse to transfer an unlimited amount of assets to their surviving spouse without incurring estate taxes.
Per Stirpes	A method of distributing an estate where each branch of a family receives an equal share, and the descendants of a deceased heir inherit their portion.
Personal Representative	A person appointed to manage the administration of the estate, including probate filings, asset management, and debt resolution.
Pet Trust	A trust created to provide for the care and maintenance of pets after the owner’s death.
Power of Attorney	A legal document granting someone the authority to act on your behalf in financial, legal, or medical matters.
Probate	The court-supervised process of authenticating a will, settling debts, and distributing assets to heirs and beneficiaries.
Revocable Trust	A trust that allows the creator (grantor) to make changes or revoke it entirely during their lifetime.
Special Needs Trust	A trust designed to provide for the needs of a beneficiary with disabilities without affecting their eligibility for government benefits.
Step-Up in Basis	A tax provision that resets the value of inherited assets to their market value at the time of the decedent’s death, potentially reducing capital gains tax.
Successor Trustee	The person or entity named to take over trust management if the original trustee is unable or unwilling to continue.
Testator	The person who creates and signs a will, specifying how they want their assets distributed after death.
Trustee	The person or institution responsible for managing a trust’s assets and distributing them according to the trust’s terms.
Will	A legal document specifying how a person’s assets should be distributed after their death and who should manage the process.

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Common Terms and FAQ

Common Probate and Trust Terms Defined

Follow the Official California Courts Guide