Trusts & Estates

Heir

A person entitled to inherit property under intestacy laws when there is no valid will.

Devisee

A person named in a will to receive real property.

Legatee

A person named in a will to receive personal property or money.

Escheat

The process by which a deceased person's property reverts to the state if no heirs or beneficiaries can be identified.

Undue Influence

Improper pressure exerted on a testator to create or modify a will in a way that benefits the influencer.

Capacity

The legal and mental ability of a person to create a valid will, requiring understanding of the nature of the act, the property involved, and the beneficiaries.

Will Contest

A legal challenge to the validity of a will, often based on claims of undue influence, fraud, or lack of capacity.

Pour-Over Will

A will that transfers any remaining assets into a trust upon the testator's death.

Inter Vivos Trust

A trust created during the settlor's lifetime, as opposed to one created by a will.

Charitable Remainder Trust

A trust that provides income to a beneficiary for a set period, with the remainder going to a charity.

Charitable Lead Trust

A trust that provides income to a charity for a set period, with the remainder going to other beneficiaries.

Special Needs Trust

A trust designed to provide for a disabled beneficiary without disqualifying them from government benefits.

Spendthrift Clause

A provision in a trust that prevents creditors from accessing the trust's assets to satisfy the beneficiary's debts.

Totten Trust

A bank account held in trust for a beneficiary, payable upon the account holder's death.

Springing Power of Attorney

A power of attorney that becomes effective only upon the principal's incapacity.

Self-Proving Will

A will that includes a notarized affidavit from witnesses, making it easier to validate in probate.

Simultaneous Death Clause

A provision in a will or trust that specifies how property is distributed if two or more people die at the same time or under circumstances where the order of death cannot be determined.

Rule Against Perpetuities

A legal doctrine that limits the duration of certain property interests to prevent them from lasting indefinitely.

Generation-Skipping Transfer (GST)

A transfer of property to a beneficiary who is at least two generations younger than the donor, often subject to special tax rules.

Fiduciary Duty

The legal obligation of a trustee, executor, or administrator to act in the best interests of the beneficiaries.

Probate Court

The court that oversees the administration of estates, including the validation of wills and distribution of assets.

Letters Testamentary

A document issued by the probate court authorizing the executor to act on behalf of the estate.

Letters of Administration

A document issued by the probate court authorizing an administrator to manage the estate of someone who died intestate.

Pretermitted Heir

A child or other heir who is unintentionally omitted from a will, often entitled to a share of the estate under state law.

Forced Share (Elective Share)

A statutory right allowing a surviving spouse to claim a portion of the deceased spouse's estate, regardless of the will's terms.

Life Estate

A property interest that lasts for the lifetime of a specified individual, after which the property passes to another party.

Remainder Interest

The interest in property that takes effect after the termination of a life estate or other temporary interest.

Reversionary Interest

A future interest in property that returns to the grantor or their heirs after the expiration of a temporary estate.

Will Substitutes

Non-probate methods of transferring property upon death, such as joint tenancy, payable-on-death accounts, or trusts.

Trust Corpus (Principal)

The property or assets held in a trust.

Income Beneficiary

A person entitled to receive income generated by the trust property.

Remainder Beneficiary

A person entitled to receive the trust property after the income beneficiary's interest ends.

Executor's Bond

A bond required by the court to ensure the executor performs their duties faithfully and compensates the estate for any losses caused by misconduct.

Abatement

The reduction of gifts in a will when the estate lacks sufficient assets to fulfill all bequests.

Exoneration of Liens

A doctrine that requires debts secured by property (e.g., mortgages) to be paid off by the estate before the property passes to a beneficiary, unless the will specifies otherwise.

Advancement

A gift made during the testator's lifetime that is intended to be deducted from the beneficiary's share of the estate.

Hotchpot

The process of combining advancements with the estate's assets to ensure equal distribution among heirs.

In Terrorem Clause (No-Contest Clause)

A provision in a will or trust that disinherits a beneficiary if they challenge the document's validity.

Trust Res

The property or assets that make up the trust.

Principal and Income

The distinction between the trust's original assets (principal) and the earnings generated by those assets (income).

Constructive Trust

An equitable remedy imposed by a court to prevent unjust enrichment when someone wrongfully holds property.

Resulting Trust

A trust implied by law when property is transferred under circumstances suggesting the transferor did not intend to give the property outright.