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At Direct Wills Trusts , we understand the importance of clarity and transparency when it comes to planning your future. That’s why we’ve created our comprehensive Glossary of Terms, designed to simplify the language of wills and trusts and make it accessible to everyone.
Here’s a glossary of common terms related to wills and estate planning, along with detailed explanations for each
A legal document that expresses a person’s wishes regarding the distribution of their assets and the care of any minor children after their death. It must be executed according to state laws to be valid.
The person who creates and executes a will. The testator must be of legal age and sound mind at the time of writing the will.
The person appointed by the testator to carry out the instructions in the will. The executor is responsible for managing the estate, paying debts and taxes, and distributing assets to beneficiaries.
The legal process through which a will is validated by a court. This process involves proving the authenticity of the will, inventorying the deceased’s assets, settling debts, and distributing the remaining property according to the will.
The condition of an estate when someone dies without a valid will. In this case, state laws determine how the deceased’s assets will be distributed, which may not align with the deceased’s wishes.
A legal document that modifies, adds to, or revokes provisions in an existing will. A codicil must be executed with the same formalities as a will.
A type of advance directive that outlines an individual’s wishes regarding medical treatment and end-of-life care in the event that they become unable to communicate those wishes.
A legal document that grants someone the authority to make financial and legal decisions on behalf of another person. This authority remains in effect even if the principal becomes incapacitated.
A person appointed to care for a minor child or dependent adult in the event of the parent or guardian’s death or incapacity. The will may specify the choice of guardian.
A legal arrangement where one party holds property for the benefit of another. A trust can be established during the testator’s lifetime (living trust) or created upon death through a will (testamentary trust).
Any item of value owned by an individual, including real estate, bank accounts, investments, and personal belongings.
All the assets and liabilities left by an individual at the time of their death. The estate encompasses everything the deceased owned, including property, debts, and any other financial interests.
A detailed report prepared by the executor outlining all financial transactions related to the estate, including income, expenses, distributions to beneficiaries, and any taxes paid.
A specific gift or bequest left in a will. Legacies can be monetary amounts or specific items of property.
Individuals who observe the testator signing the will. Most states require at least two witnesses to validate a will, ensuring it was signed voluntarily and the testator was of sound mind.
A provision in a will that discourages beneficiaries from contesting the will by threatening to disinherit anyone who challenges its validity.
An individual who is entitled to inherit assets under the law when someone dies intestate. Heirs can be family members such as spouses, children, parents, or siblings.
The legal term describing an individual’s mental ability to understand the nature of creating a will, the extent of their property, and the identities of those who will benefit from the will.
A child or heir who is unintentionally omitted from a will. Some states have laws to protect the rights of pretermitted heirs, allowing them to inherit a share of the estate.
The act of invalidating or canceling a will. A will can be revoked by a subsequent will or codicil or by physical destruction of the document by the testator.
A legal term that refers to criteria for distributing trust assets, often related to the beneficiary’s health, education, support, or maintenance.
A fee paid to the executor for their services in managing and distributing the estate. This fee may be a percentage of the estate’s value or a flat rate, depending on state law and the will’s provisions.
A provision in a will or trust that specifies how assets will be distributed if the primary beneficiary predeceases the testator. This can involve designating alternate beneficiaries.
Start exploring our Glossary of Terms now, and let Direct Wills Trusts guide you through the legal landscape of wills, trusts, and estate planning. If you ever have any questions or need personalized assistance, our team of experts is just a phone call or email away.
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