Living Trust
GLOSSARY
The "Abstract," while not disclosing personal family information such as beneficiaries and distribution instructions, does contain key provisions which inform the various interested parties of the Trustee(s) powers.
This document empowers the person you name to make certain medical decisions on your behalf if you are unable to do so. Usually you will also name one or more backups in case your first choice is unavailable.
One for whose benefit the living trust is created and funded. The person or persons such as husband and wife are the primary beneficiaries of their own trust. After the death of the primary beneficiaries, the trust serves to benefit the Successor Beneficiaries Selected by the Trust’s creator, known as a Grantor, Trustor or Settlor.
A Conservator is a person or entity appointed by a court to oversee and has the legal duty to care for and maintain the person and/or property of an incapacitated adult.
Having a Conservator appointed over you can be expensive, restrictive and humiliating. A properly prepared estate plan should prevent the court from getting involved in your personal or financial affairs.
This is a legal document that allows you to nominate one or more persons to make personal, business and asset management decisions on your behalf if you are unable to do so. Serves as sort of a companion document to your living trust, if established, in order to effectively deal with personal business or assets not owned by your trust, such as IRA’s and 401k’s.
The death taxes imposed by the federal government on the transfer of assets at death. Estate taxes are generally paid by the executor of the probate estate or the trustee of a living trust.
The person or institution who is appointed by the testator or testatrix in his or her will to take care of the funds and property after death (also referred to as the "personal representative" of the estate). The executor functions under the jurisdiction of the probate court.
The obligation to manage assets for another in the same way a prudent person would manage his own assets.
Your Living Trust Portfolio will provide a worksheet for you to provide information concerning burial or other preferred final arrangements.
Once your Living Trust is signed and notarized, your various assets must be “Funded” in order to avoid probate and be managed under the terms of the trust. “Funding” is the process of transferring the title of real estate and financial assets from your individual name to the name of the trust. Example. Funding your real estate entails signing and recording a Grant Deed or Quitclaim deed transferring title from Bob Smith and Sue Smith, husband and wife, TO Bob Smith and Sue Smith, Trustees of the Bob and Sue Smith Family Trust. Bank and other financial accounts are similarly retitled so that ultimately you do not own your assets personally, but your trust owns them for you.
The person who has the legal duty to care for and maintain the person and/or property of an unmarried minor child.
A person who inherits property (according to state law scheme of distribution) from a person who dies intestate.
A situation where a person dies without leaving a valid will.
Lineal descendants of all degrees (e.g., children, grandchildren, great-grandchildren, etc.).
A co-ownership of property by two or more parties in which each owns an undivided interest that passes to the other co-owners on his or her death (known as the "right of survivorship").
A trust beneficiary whose interest consists solely for the use of, and income flow from, the trust funds during his lifetime.
(Also "INTER-VIVOS" TRUST) A legal entity created to hold your assets for you. Typically, under the terms of the trust, you appoint yourself as Trustee to legally manage all our your assets for your benefit during your lifetime. In the event you should become incapacitated, you appoint a Successor Trustee to manage the assets held for you in trust, and upon your death, to manage and distribute your assets to your designated beneficiaries in the manner you feel is appropriate. This document is revocable and may be amended or revoked, but only by you, during your lifetime.
This is a signed statement by you concerning your wishes and instructions to your physician and family members on whether or not to continue heroic measures to keep you alive if such measures would only serve to prolong the process of dying. What used to be a separate stand-alone declaration, your Living Will is now contained within your Advance Health Care Directive. As such it allows your designated health care agent to carry out your desires to, or not to be put on a life support system.
Frequently known as your LAST WILL AND TESTAMENT. When used in combination with a Living Trust, your Will is known as a "Pour-Over Will" which leaves (Pours Over) all of your property which was not previously titled to the living trust so that any assets not previously transferred to the living trust may be administered under its terms upon your death. The Pour Over Will serves as a ‘catch all’ instrument which should not be needed if all assets are properly transferred to your trust before you die.
The legal proceedings by which the probate court is given full jurisdiction over the assets of the decedent. Probate starts with the filing of the decedent's will with the court, and ends after all taxes and debts of the decedent have been paid and the assets accounted for distributed in accordance with the terms of the decedent's will. Probate usually lasts for at least nine months and can often endure for two years or more.
(If female, TESTATRIX) - A person who makes a will.
The person or institution who is responsible for holding, managing, and distributing money and other property contributed to the living trust for the exclusive use and benefit of the beneficiaries. Most individuals who establish a Trust (aka the Settlors) name themselves as the initial Trustee. The Settlors may name one or more individuals or a professional or corporate trustee to act as Trustee in the event of their own incapacity or death.
Parties who establish a trust by transferring property to a trustee to be managed for the benefit of another.