Will Legal Terminology

Legal succession: Legal distribution of the estate of a person who dies without a will. Beneficiary: A person who receives the benefit of owning an estate or trust through the right to receive a bequest or to receive income or trust capital over a period of time from tim Trust Estate: Assets transferred to the trustee by re-registering their legal titles in the name of the trustee. Fiduciary assets can include real estate, bank accounts, stocks, bonds, brokerage accounts, corporate interests, tangible personal property, and many other types of financial and legal interests. Circumvent trust – “Trust B” in the planning of Trust A-B, which is protected from federal discount tax by the amount of the deceased`s estate tax exemption. Since this trust “bypasses” the inheritance tax in the estate of the deceased and on the death of the surviving spouse, this trust is often referred to as a circumvention trust. This type of trust will not be as important for tax planning given the concept of estate law portability, but such a trust will still be useful for many non-tax planning considerations. If you live in a state where the estate tax exemption is lower than that provided by the Federal Discount Tax Act, you may need to change the terms of a circumvention trust to remedy that lower amount. See A-B Trust planning comments above. By-Pass Trust: The “B Trust” in AB Trust planning, also known as the “Credit Shelter Trust”. Created to hold assets whose value is equal to the amount of exclusion from the testator`s estate tax, under conditions such that these assets “escape” other inheritance tax when the original beneficiary of the trust dies. Disclaimer Trust: A reference to a protection trust formed in a will in which the property rejected by the surviving spouse circulates. Any blood relative can claim the estate. The court may even make guardianship arrangements based on its determination of the best interests of the children.

If a court finds that a will has not been properly drafted, it considers it invalid. The settlement of the succession is then subject to the Basic Law of the State. The legal name given to a person who has made a valid will for acceptance in the event of death is “testator”. Common synonyms for this word are: Prudent Man Rule: A legal principle that requires a trustee to manage the assets of a trust with the same care that a prudent, honest, intelligent and hard-working person would use to treat property in the same circumstances. Greenhouse contracts: Binding conditions between two or more people that require participants to have certain conditions in wills that come into effect upon death. A will and the latter will form the basis of an estate plan and are the key tool used to ensure that the estate is settled in the manner desired by the deceased. While an estate plan can be more than just a will, it is the presidential document that the probate court uses to guide the process of settling an estate. Any person who is of legal age and has “testamentary capacity” (i.e., who is usually clear-minded) can make a will with or without the help of a lawyer. Trustee: The natural or legal person or trust company that intends to hold and manage property in trust (also commonly referred to as the “Trustee”). This person is the legal owner of the assets of the trust. A trustee has a duty to act in the best interests of the trust and its beneficiaries and in accordance with the terms of the trust deed. Will: Letter indicating the beneficiaries who will inherit the testator`s property and appointing a representative to administer the estate and be responsible for distributing the property to the beneficiaries.

To be valid, a testator must have legal capacity and comply with state law at the time of drafting the will. Inheritance tax – A tax levied by many jurisdictions on property transferred by the will of a person or by the intestate law of a state. In the common property jurisdiction, a will cannot be used to disinherit a surviving spouse who is entitled to at least part of the testator`s estate. In the United States, children can be disinherited by the will of a parent, except in Louisiana, where a minimum proportion is guaranteed for surviving children, except in specially listed circumstances. [10] Many civil law countries follow a similar rule. In England and Wales, from 1933 to 1975, a will could disinherit a spouse; However, since the Inheritance (Family and Caring Provisions) Act 1975, such an attempt may be rejected by a court order if it leaves the surviving spouse (or other lawful dependant) without “adequate financial provision”. Living trusts can help you avoid succession, but can be difficult to fund, so a will is good protection to protect intended beneficiaries. Learn about payment wills, how they help you, and more. Arrears: Property that remains in the estate of a deceased person after the payment of debts, taxes and expenses of the estate and after all specific gifts of property and money have been distributed in accordance with the instructions of the will. Sometimes also called the remaining discount. Estate tax or inheritance expenses: The tax levied by some states on property that passes under the will of a deceased person or by will. Attestations: Refers to a person who dies with a will.

Non-dispute clause: A provision in a will or trust agreement that provides that a person who sues for more of the estate or trust or to cancel the document will lose all of their estate rights. These clauses are not permitted in all cases or in all States. A will is a legal instrument that takes effect on the death of the person who created it. The will is signed by a testator (the person who made the will) and performs one or more of the following actions: If a person dies without a valid will, he dies without a will, which means that the state becomes the executor of the estate. When settling the estate, the state decides how the property is distributed and who receives the payment first, regardless of a family`s situation. Testamentary trust: You can establish trust by creating it through your will. This is called a testamentary trust. Inherited: This word is used as a verb in your will when you say you are leaving something to a beneficiary. For example, “I bequeath my house to my son Richard.” The DRR can be used to reinstate a gift mistakenly struck off a will if the testator`s intention was to increase that gift, but does not apply to the restoration of such a gift if the testator`s intention was to revoke the gift in favor of another person.

For example, suppose Tom has a will that leaves $5,000 to his secretary Alice Johnson. If Tom strikes out this clause and writes “$7,000 to Alice Johnson” in the margins, but does not sign or date the writing in the margin, most states will conclude that Tom revoked the previous provision, but did not actually amend his will to add the second; Under the DRR, however, the revocation would be reversed because Tom acted in the mistaken belief that he could increase the donation to $7,000 by writing this in passing. As a result, Alice will receive $5,000. However, the doctrine of relative revocation does not apply if interlimitation reduces the amount of the gift in relation to the original provision (p.. B e.g. “$5,000 to Alice Johnson” is crossed out and replaced by “$3,000 to Alice Johnson” without the testator`s signature or date in the margins; DrR does not apply and Alice Johnson will not take anything). Prior to joining LegalMatch, Daniel worked as a legal writer for a large HR compliance firm, focusing on employer compliance in many areas of law, including occupational health and safety law, health law, payroll and working time law, and cybersecurity. Prior to that, Daniel worked as a litigator for several small law firms and handled a diverse workload that included real estate law (property rights, disputes between apartment owners and tenants, foreclosures), labor law (minimum wage and overtime claims, discrimination, workers` compensation, labor relations), in construction law and commercial law (consumer protection law and contracts).

Daniel holds a J.D. from Emory University School of Law and a B.S. in biological sciences from Cornell University. He was admitted to the New York State Bar and the Georgia Bar Association. Daniel is also admitted to practice before the U.S. Courts of Appeals for the 2nd and 11th Districts. You can learn more about Daniel by visiting his LinkedIn profile and personal page. Estate: Your estate includes all property whose legal title passes through your will upon your death. Succession does not include assets that are transferred outside the will by law or contract. Examples of non-probate assets often include life insurance where you have named a beneficiary, property held with the right of a survivor, assets held by a revocable living trust, accounts at the time of payment in the event of death, and IRAs where you have designated a beneficiary….