DEFINITION OF TERMS

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Administrator - Appointed by a probate court when there is no Will. Performs functions similar to an Executor. Acts on behalf of the estate: inventories the deceased’s property, pays debts and taxes, and distributes what’s left to beneficiaries.

Affidavit - Written statement signed under oath in front of a notary public

Affidavit of Authority - Notarized legal document verifying someone as the duly and legally appointed representative or owner of said property

Affidavit of Residence - Notarized legal document which attests and confirms the residential location of said person

Annuity - Contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement

Assisted Living - Residential facility for those needing assistance with some daily activities but not needing constant care

Autopsy - Critical examination of the decedent’s body to determine the cause of death

Beneficiary - A person or organization named under a will, trust, life insurance policy or other legal instrument. They are legally entitled to receive property from a decedent’s estate.

Bond - Form of insurance that protects beneficiaries and heirs from any losses caused by an executor’s inappropriate management of the estate.

Caterers - Business that provides food and service for events.

Cemetery - Land parcel set aside for burying the dead – sometimes referred to as a graveyard

Certified Financial Planner - Professional in financial planning who has met the requirements of the Certified Financial Planning Board of Standards.

Certified Public Accountant (CPA) - Title awarded in the United States to accountants who meet stringent professional qualifications. State authorities confer the title on those who pass the Uniform CPA Examination, and who satisfy the experience requirement of the particular state.

Charitable Institutions - Organization that meets the requirements of section 501c(3) of the Internal Revenue tax code, operated solely for a religious, charitable, scientific, literary, educational, or similar purpose.

Claims - Written statement by a person, company, or organization citing compensation owed by the decedent. Claims are usually presented to the executor or to the probate court.

Clergy - Body of people ordained for religious duties

Commission - Written warrant granting power to perform various tasks

Coroner - Public official who investigates by law the cause of death which there is reason to believe is not due to natural causes

County Court - Also known as Probate Court – a county level, specialized court that deals with matters of administration of estates

Credit Counselor - Professional who provides assistance in managing debt

Creditor - Person or business to which money is owed

Crematory - Business directly responsible for the cremation of the decedent’s remains.

Custodian - Person named to manage property left to a minor until said minor is the age which state law says he/she can receive it. Custodian uses the property for the benefit of the minor in matters of education, health and general support.

Death Certificate - Official government document stating particulars relating to a death, including the name of the deceased, date of birth and death, and cause of death. It is usually certified to by a doctor.

Deceased - a person who has died

Decedent - a person who has died

Disposition - transfer to the care or possession of another

Domicile - Person’s legal place of residence

Domiciliary Letters - The document a probate court issues to the administrator of an estate, authorizing them to act on behalf of the estate and to perform all duties required to administer the estate according to state laws

Durable Power of Attorney - Document in which an individual gives legal authority to another to act or make decisions on their behalf. There are both financial and health care durable powers of attorney.

Employer Identification Number (EIN) - Also known as a Federal Tax Identification Number, necessary to open an estate checking account, and used to identify the estate

Equitable Title - The right the beneficiaries retain to benefit from the property as specified in the trust. Also called beneficial title.

Estate - Term used in common law to signify the total of a person's property, entitlements and obligations owned at death

Estate Administrator - Appointed by a probate court when there is no Will. Performs functions similar to an Executor. Acts on behalf of the estate: inventories the deceased’s property, pays debts and taxes, and distributes what’s left to beneficiaries.

Estate Attorney - Legal agent who has been certified to practice law specializing in estate issues. They are often referred to as a probate attorney.

Estate EIN - Employer Identification Number (EIN) - also known as a Federal Tax Identification Number, used to identify the estate

Estate Residence - Home of the decedent; where the decedent lived

Estate Sales (Auctioneers) - Assist the executor in the sale of valuable items of the estate. They can be expected to provide to appraisal of specific assets.

Estate Taxes - Federal tax applied to the transfer of the decedent’s assets to heirs and beneficiaries, assessed on estates of a certain size

Executor - Person or organization, named in a will who gathers the deceased person’s property, pays debts and taxes, and distributes what’s left to beneficiaries. Some states refer to executors as personal representatives.

Fiduciary - Person, corporation, or association that holds assets in Trust for a beneficiary

Financial Planning Consultants - Also called Certified Financial Planners. A professional in financial planning who has met the requirements of the Certified Financial Planning Board of Standards.

Florist - Professionals who’s business encompasses flower care and handling, floral design or flower arranging, merchandising and display and flower delivery.

Formal (probate) - Term used in states that have the Uniformed Probate Code (UPC) laws. Both supervised and unsupervised formal probate require court hearings; supervised is required for specific reasons such as determining heirs, managing large creditor claims, when an estate has more debts than assets, or when minors inherit major property.

Formal Probate - Term used in states that have the Uniformed Probate Code (UPC) laws. Both supervised and unsupervised formal probate require court hearings; supervised is required for specific reasons such as determining heirs, managing large creditor claims, when an estate has more debts than assets, or when minors inherit major property.

Funeral Director - Manages the planning and direction of the funeral ceremony. Responsibilities include the technical services regarding the care, preparation, presentation and final disposition of the deceased.

Funeral Home - Business that provides funeral and burial services for the deceased and their families. Also referred to as a funeral parlor, or mortuary.

Furniture Moving and Storage - Provides short and long haul transfers of estate property as well as storage of those items

Grantor - The person who creates the trust, also called donor or trustor

Heir - Person who inherits or is entitled to inherit from a parent or predecessor

Home Health Care - Health care or supportive care provided in the patient's home by a healthcare professional

Honorarium - Payment for a service for which custom or propriety forbids a price to be set – ex. payment for clergy services or a speech given at a funeral

Hospice - Facility or program designed to provide a caring environment in meeting the physical and emotional needs of the terminally ill

Informal - (probate) Term used in states that have the Uniformed Probate Code (UPC) laws. Big and small estates can use informal probate. Paperwork is filed with the court without formal hearings

Informal Probate - A term used in states that have the Uniformed Probate Code (UPC) laws. Big and small estates can use informal probate. Paperwork is filed with the court without formal hearings

Insolvent - Estate that has debts in excess of assets, resulting in the inability to pay all liabilities

Insurance Agent - Individual who is licensed by a state to sell insurance for one or more specific insurance companies

Intestate - Dying without a valid Will.

Intestate succession - The order of inheritance under state law for a decedent dying without a Will. (e.g. surviving spouse, children, parents…..)

Irrevocable - Cannot be changed or canceled. In the case of a Revocable Living Trust, once the grantor dies, the trust becomes irrevocable.

Joint Survivor - Referred to as joint tenancy when more than one person holds title to property. When one owner dies, the survivor automatically owns the property in entirety.

Jointly Owned with Rights of Survivorship - Referred to as joint tenancy when more than one person holds title to property. When one owner dies, the survivor automatically owns the property in entirety.

Letters of Administration - The document probate court issues to authorize the administrator of an estate (when there is no Will)

Letters of Authority - The document a probate court issues to authorize the executor of an estate

Letters Testamentary - The document probate court issues to authorize the executor of an estate (when there is a Will)

Living Trust - Legal document created during the grantor’s lifetime, usually to avoid probate. Managed by a Trustee who protects the assets and distributes property as directed by the trust.

Mausoleum - An external, free-standing building constructed as a monument enclosing the interment space or burial chamber of the deceased.

mortuaries - A room or building where the deceased is placed until burial. Another name for a funeral home or morgue.

MyPersonalAdministrator - Family Matters USA, a professional organization that assists families in transitioning estates

Non-Appearance Hearing - A petition filed with probate that does not require a personal appearance which pertains to matters expected to be routine and unopposed

Notary - Someone legally empowered to witness signatures and certify a document's validity

Nursing Homes - A residential facility for persons with chronic illness or disability, particularly people who face medical challenges that inhibit independent living. They may also be referred to as a convalescent home, or long-term care facility.

Payable on Death (POD) - A bank account for which the owner named a beneficiary. Beneficiary obtains the account when the owner dies, inheriting any money in the account without probate.

Payment on Death (POD) - A bank account for which the owner named a beneficiary. The beneficiary obtains the account when the owner dies, inheriting any money in the account without probate.

Personal Property - all possessions, assets etc. other than real estate

Personal Property Memorandum - Legal document that is referred to in a Will and used to guide the distribution of property, other than real estate, that has a physical existence and an intrinsic value. Examples are jewelry, artwork, furniture, livestock, machinery, equipment, and vehicles.

Personal Representative - a term used by probate courts (in some states) in place of “executor”

POD - A bank account for which the owner named a beneficiary. Beneficiary obtains the account when the owner dies, inheriting any money in the account without probate.

Power of Attorney - A legal document providing legal authority for someone to act as the agent for another person, e.g. make decisions on their behalf. There are both financial and health care durable powers of attorney.

Probate - The court authorized process that includes validating a will, appointing an executor to gather the deceased person’s assets, pay debts and distribute remains according to the will. Sometimes referred to as regular probate.

Probate Court - A county level specialized court which deals with matters of the administration of estates

Probate Lawyer - A legal agent who has been certified to practice law specializing in estate issues. They are often referred to as an estate attorney.

Real Estate Agents - A real estate agent is an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker

Regular Probate - The term used to identify states that do not utilize the Uniform Probate Code (UPC). As in all probate, it is the court authorized process of gathering the deceased person’s assets and distributing them. The probate process is state and/or county specific and may require court hearings as part of the procedure.

Retirement Communities - planned communities for residents who have retired from an active working life

Revocable - A term used which describes the ability to legally change the terms and end a trust document

Revocable Living Trust - A trust that allows the grantor to make changes at any time, as well as the right to reclaim the property transferred into it. It will describe how your property should be managed while alive, and how it should be distributed upon your death.

Savings Bonds - A registered, non-callable, non-transferable bond issued and backed by the U.S. Government.

Schedules - This term relates to the Living Trust. Schedules A and B are designed to facilitate listing of the property that will be held in the name of the trust, as well as distribution to any beneficiaries.

Small estate - An estate that contains property valued small enough to be eligible, under state law, for a simplified probate procedure

Successor Trustee - The person who takes over in the event of the original trustee’s death or incapacity

Summary Probate - A probate process used for small estates that is fast, easy, and does not require court hearings. Often the estate distribution is completed in weeks.

Supervised Formal Probate - A term used in states that have the Uniformed Probate Code (UPC) laws; a probate procedure that requires the executor to get court approval to distribute all property and may require monthly accountings. Usually used when a beneficiary cannot look after their own interests, and needs the court’s protection.

Testamentary Trust - A trust set up to take effect at the will maker’s death

TOD – Transfer on death - Ownership to property, usually security accounts, transferred to the beneficiary outside of probate

Traditional Funeral - A funeral held in a funeral home, either religious or secular, with direct burial and no cremation

Transfer on Death (TOD) - Ownership to property, usually security accounts, transferred to the beneficiary outside of probate

Trust - A legal relationship in which one person or qualified trust company holds and/or manages property for the grantor or beneficiary

Trust Checking Account - a checking account opened in the name of the trust to handle expenses, and distribution of cash assets. An EIN is required to open such an account.

Trustee - The person or trust company that holds and manages property for the benefit of a grantor and others.

Unified Probate Code - Set of laws governing wills, trusts, and probate

Unsecured debts - Debt that is not backed by collateral property

Unsupervised Formal Probate - A term used in states that have the Uniformed Probate Code (UPC) laws; a probate procedure that reduces the delay of finalization and distribution by eliminating audit and accounting review by the Court.

Veteran - A former member of the Armed Services.

Will - A legal document in which a person directs who is to inherit his/her property at death. Often includes the name of the executor.