Glossary of Terms

ADMINISTRATION:: The management of a decedent's estate including the payment of expenses, debts and obligations, and the general settling of the estate.
ADMINISTATOR:: An individual or entity, such as a trust department, appointed by a court to settle the estate of a person who has died without leaving a valid will.
BENEFICIARY:: Person or entity entitled to receive benefits from a will, insurance policy, trust agreement or employee benefit plan.
CHARITABLE REMAINDER TRUST:: An irrevocable trust with both income and remainder interest. Income is paid to designated beneficiaries for a term or lifetime. The remainder interest is paid to qualified organizations as specified in the trust document when the trust terminates.
CORPORATE TRUSTEE:: A trust institution serving as trustee.
DOURABLE POWER OF ATTORNEY:: A power of attorney that will come into effect and remain in effect and valid if the person who grants the power becomes incapacitated.
ESTATE:: The real and personal property of a decedent; a specific interest in property.
FIDUCIARY:: An individual or entity in position of trust who has accepted the duty of acting for the benefit of another.
GRANTOR/SETTLOR:: A person who transfers property, the creator of a trust.
IRREVOCABLE LIFE INSURANCE TRUST:: Typically used to shelter an insurance death benefit from estate taxes and may provide liquidity to pay estate taxes and settlement costs. A trust is created, then the trust purchases and owns a life insurance policy. Upon death, the insurance proceeds are paid out in accordance with the terms of the trust.
IRREVOCABLE TRUST:: A trust that, by its terms, cannot be revoked by the grantor.
LIVING TRUST:: A trust that is operative during the lifetime of the grantor; as opposed to a trust under will or a testamentary trust. Also known as an inter-vivo's trust.
POWER OF ATTORNEY:: A legal document appointing someone to act as one's agent with legal authority to sign your name, on your behalf, in your absence. Power of Attorney ends at incapacity (unless it is a durable power of attorney) or death.
PROBATE:: The legal process wherein the estate of a decedent is administered, which includes the process of proving validity of a will in court and executing its provisions under the guidance of the court. Assets in trust avoid probate.
REMAINDERMAN:: The person who is entitled to an estate after the prior estate has expired.
REVOCABLE TRUST:: A trust that by its terms may be terminated by the settlor or by another person.
SUCCESSOR TRUSTEE:: Person or institution named in the trust document who will take over should the first trustee die, resign or otherwise become unable to act.
TRUST:: An entity that holds assets for the benefit of certain other persons or entities.
TRUSTEE:: Person or institution who manages and distributes another's assets according to the instructions in the trust document.
WILL:: A written document with instructions for the distribution of an individual's assets after death.