Finance 260 Estate Planning

These flashcards cover key concepts from estate planning, including definitions related to probate, wills, trusts, and taxes.

Probate

The formal legal process that gives recognition to a will and appoints the executor to administer the estate.

Testate

Referring to a situation where an individual has made a will prior to their death.

Intestate

Referring to a situation where an individual dies without a will.

Executor

An individual who carries out the provisions of a will.

Intestacy Laws

Existing laws that dictate how assets are distributed when someone dies without a will.

Beneficiary Designations

Designations that can supersede a will, directing who receives certain assets.

Trust

A fiduciary arrangement that allows a trustee to hold assets on behalf of a beneficiary.

Revocable Trust

A trust that can be altered or revoked by the grantor during their lifetime.

Irrevocable Trust

A trust that cannot be altered or revoked once established.

Estate Tax Exemption

The amount over which federal estate tax applies; as of 2025, it is $13,990,000.

Estate Tax Portability

The ability for a surviving spouse to use the unused estate tax exemption of the deceased spouse.

Inheritance Tax

A tax imposed on the value of an inheritance received by a beneficiary.