|See “Durable Power of
Attorney for Health Care.”
|One who is entitled by law to
receive part of your estate.
|Portion of your residence
(dwelling and surrounding land) that cannot be sold
to satisfy a creditor’s claim while you are
|Unable to manage one’s
own affairs, either temporarily or permanently.
Lack of legal power.
|A form of probate available
in many states. Intended to simplify the probate
process by requiring fewer court appearances and
less court supervision.
|The assets received from
someone who has died.
|Latin term that means
“between the living.” An inter vivos trust is
created while you are living instead of after you
die. A revocable living trust is an inter vivos
|A trust that cannot be
changed (revoked) or cancelled once it is set up.
Opposite of revocable trust.
|Without a will.
|A form of ownership in which
two or more persons own the same asset together.
Types of joint ownership include joint tenants with
right of survivorship, tenants in common, and
tenants by the entirety.
|Joint Tenants with Right
|A form of joint ownership in
which the deceased owner’s share automatically
and immediately transfers to the surviving joint
|Often used for privacy. Title is transferred to a corporate trustee or corporation, but you keep control over how the property is managed. Because the title is in the name of the corporate trustee or corporation, no one knows the property belongs to you. In all financial transactions and dealings, your personal name never comes up. Also called a title holding trust.
|Cash and other assets (like
stocks) that can easily be converted into
|The court-supervised process
of managing the assets of one who is
|A written legal document that
creates an entity to which you transfer ownership
of your assets. Contains your instructions for
managing your assets during your lifetime and for
their distribution upon your incapacity or death.
Avoids probate at death and court control of assets
at incapacity. Also called a revocable inter vivos
trust. A trust created during one’s
|A written document that
states you do not wish to be kept alive by
artificial means when the illness or injury is
|A deduction on the federal
estate tax return that lets the first spouse to die
leave an unlimited amount of assets to the
surviving spouse free of estate taxes. However, if
no other tax planning is used, and the surviving
spouse’s estate is more than the amount of the
federal estate tax exemption in effect at the time
of his/her death, estate taxes will be due at that
|See “A Trust.”
|A federally-funded health
care program for the poor and minor
|A federally-funded health
care program, primarily for Americans over age 65
who are covered by Social Security or Railroad
|One who is under the legal
age for an adult, which varies by state (usually
age 18 or 21).
|The value of an estate after
all debts have been paid. (Federal estate taxes are
based on the net value of an estate.)
|The current market value of
an asset less any loan or debt.