Law Office of Mark L. O'Connor
THE ESTATE TAX ("Death Tax").
SHOULD YOU CARE?
What is the Estate Tax? The estate tax, also sometimes refeerred to as the death tax, is a federal tax (some states also impose their own version of a death tax) that occurs on some estates valued over a certain amount upon your death.
Estate Planning Glossary
Assets
Anything you own, including your home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, art, clothing, and collectibles.
Beneficiaries
In a living trust, the persons and/or organizations who recieve the assets of the trust, or benefit from the trust assets, after the death of the trust settlor.
Certificate of Trust
Codicil
A written change or amendment to a Wll.
Community Property
Conservatorship
Disclaim
To refuse to accept a gift or inheritance so it can go to the recipient who is next in line.
Distribution
Payment in cash ot asset(s) to one who is entitled to receive it.
Estate
Assets and debts left by an individual at death.
Estate Taxes
Executor
Person or insitution named in a will to carry out its instructions. A Female executor is called an Executrix. Also called a personal representative.
Fiduciary
Funding
The process of transferring assets to your living trust.
Heir
One who is entitled by law to receive part of your estate.
Holographic Will
A handwritten will.
Incapacitated/Incompetent
Unable to manage one's own affairs, either temporarily or permanently. Lack of legal power.
Inheritance
The assets received from someone who has died.
Inter vivos
Irrevocable Trust
A trust that cannot be changed (revoked) or cancelled once it is set-up. Opposite of a revocable trust.
Intestate
Without a will.
Living Trust
Personal Property
Pour Over Will
Real Property
Land and property that is permanently attached to land (like a building or a house).
Revocable Trust
Separate Property
Generally, all assets you acquire prior to marriage and assets acquired by gift or inheritance during marriage.
Settlor
Special Gifts
Special Needs Trust
Spouse
Husband or wife.
Surviving Spouse
The spouse who is living after one spouse has died.
Survivor's Trust
Successor Trustee
Testamentary Trust
A trust in a will. Can only go into effect at death. Does not avoid probate.
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.
Trustor
Totten Trust
Will
A written document with instructions for disposing of assets after death. A will can only be enforced through the probate court.