California Legal Dictionary

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A-B Trust

A-B trust is a trust that is divided into separate parts upon the death of the first spouse. It is formed with each spouse placing assets in the trust and naming them as the final beneficiary.

Account

Accounts typically include a statement of receipts and disbursements of principal and income, a statement of assets and liabilities, the fiduciary’s compensation, notice of any agents hired by the fiduciary, their relationship…

Adult Protective Services

Adult Protective Services is a government social services agency charged with the protection of abused, neglected, or exploited older adults and adults with significant disabilities.

Agent

Attest: to confirm in writing that a will is genuine; to bear witness to attest that a will was signed and declared to be a will.

Attestation

Attestation: The act of witnessing the signing of a will to declare that the will was properly signed and declared by the signer to be his or her signature.

Attorney-In-Fact

Attorney-In-Fact: In a “general power of attorney,” the attorney-in-fact can conduct all business and personal matters and sign any documents.

Benefactor

Is a person or entity that supports another person or entity by giving funds or property.

Beneficiary

Beneficiary: a person entitled to any income or principal of an estate or trust or other contract (such as a life insurance contract or retirement plan). Beneficiaries can have present interests or future interests.

Beneficiary Designation

You may name any person or institution as a beneficiary of your bank account, brokerage account, retirement plan (including an IRA or and 401k), annuity contract, life insurance policy, and other similar financial accounts.

Bequest

To give or leave property or assets by will to an individual or charity. A bequest may be for a specific amount or percentage of the estate.

Breach of Trust

Failure of the trustee to fulfill required duties. This includes doing things illegally, negligently, or forgetfully...

Charitable Lead Trust

A trust (for a fixed term) in which a charity is the income beneficiary and the remainder or principal (at the end of the term) is given to a non-charitable beneficiary.

Charitable Shelter Trust

A taxable trust is funded with the credit shelter amount. Frequently, this type of trust is used to provide benefits to a decedent’s surviving spouse while avoiding inclusion in that spouse’s gross estate.

Children’s Trust

A document that controls when your children will be able to access the money you’ve left them. Frequently, the trust provides for the equitable payment of college costs for each child. Then assets are distributed as you direct.

Coercion

The improper use (or threat of improper use) of authority, economic power, physical force, or other such advantage by a party to compel another to submit to the wishes of its wielder.

Contingent Beneficiary

A person who may share in an estate or trust depending upon the happening of an event. For example, a person who must reach the age of 25 before receiving anything from a trust is a contingent beneficiary.

Custodian of the Will

The person who has possession of the will dies when the person who wrote it dies.

Decedent

An individual who has passed away.

Diminished Capacity

Although the testator was not incapacitated, due to emotional distress, a physical condition, mental infirmity, or other factors, he could not fully comprehend the nature of his testamentary act.

Disbursement

The transfer of assets from an estate or trust to creditors.

Disclaim

To refuse to accept (or renounce) a gift or benefit.

Distribution

The transfer of assets from an estate or trust to beneficiaries.

Donee

Recipient of a gift.

Donor

One who makes a gift or one who creates a trust.

Durable Power of Attorney for Health Care

This instrument is used to appoint a person you designate to make decisions regarding your health care treatment if you are unable to provide informed consent.

Duress

The use of force, false imprisonment, or threats (and possibly psychological torture or “brainwashing”) to compel someone to act contrary to his or her wishes or interests.

Executor

The person nominated by the decedent and appointed by a probate court to administer the estate of a decedent who leaves a will. The executor must ensure that the decedent’s desires as expressed in the will are carried out.

Fiduciary

An executor, administrator, trustee, guardian, conservator, attorney-in-fact, or other person who must manage property or exercise rights or powers for the benefit of others which gives rise to a relationship of trust and confidence.

Fiduciary Duties

A fiduciary duty is the highest standard of care at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal”). He must not put his interest before the duty, and must not profit from his position as a fiduciary unless the principal consents.

Gift

A gift is anything voluntarily transferred by one person to another without compensation.

Health Care Power Of Attorney

A document that clearly states what your wishes are if you find yourself needing medical care and you cannot represent yourself. You appoint an agent who will act on your behalf to make sure your wishes are followed.

Heir

One who inherits, or is entitled to succeed to the possession of, any property or funds after the death of its owner. One on whom the law bestows the title or property of another at the death of the latter.

Irrevocable Life Insurance Trust

A document that removes the value of your life insurance from your taxable estate. You choose a trustee. The trustee makes sure the policy premiums are paid and that your beneficiaries receive proceeds at your death.

Our Legal Dictionary

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Power of Attorney

A power to decide who will receive property. Power can be “lifetime power,” which is exercisable while the power holder is living, or a “testamentary power” which is exercisable only by will.

Taxable Estate

The total assets that will be taxed at y our death. To calculate your taxable estate, you first determine your “gross estate,” and then subtract any marital or charitable deductions.