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Administrator
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The name of the person a Probate Judge appoints who will administer the estate of
a person who dies without a Will (dies intestate). For persons who die with a Will
(dies testate) and have personally chosen, the person whom they entrust to carry
out their wishes, is referred to as either the Personal Representative or
Executor/Executrix.
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Advance Medical Directive
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Also known as a Healthcare Power of Attorney, it is a legal document that allows
you to select an agent who you would like to make healthcare and medical treatment
decisions for you if you are incapacitated. In some states this same document is
called a Designation of Health Care Surrogate or a Medical Power of Attorney.
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Attorney in Fact
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The person(s) you name in your Healthcare Power of Attorney and Financial Power
of Attorney to serve as your fiduciary agent(s) and act and make decisions on your
behalf if you become incapacitated.
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Beneficiary(ies)
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The person(s) who you name in your Will to receive property.
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Bequests
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The legal term for the gifts that you make to your beneficiaries.
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Codicil
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The legal term for a document that you create when you already have a Will and wish
to make changes or update that existing Will. A Codicil must be signed and executed
with the same legal formalities as the original Will.
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Conservator
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The name of a person who is appointed by a Judge to exercise the legal rights of
an incapacitated person or a minor child. Also, referred to as a Guardian.
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Decedent
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A person who has died.
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Devise
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The legal term for gifting or transferring property through a Will to beneficiaries.
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Durable Power of Attorney
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A type of Power of Attorney that becomes effective upon execution and is effective
both when the person is competent to manage his or her affairs as well as if the
person is determined to be mentally incapacitated and cannot make his or her own
decisions.
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Estate
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All of the property that a person owns during as well as after death. A Probate
Estate is all the property that a person owns that will transfer through his or
her Will. An Augmented or Gross Estate is all the property that a person owns including
assets that do not transfer through a Will but instead may transfer through a Trust,
Beneficiary designations for bank accounts, retirement plans, life insurance policies,
etc., or assets that transfer automatically upon death by operation of law such
as jointly titled property.
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Estate Tax
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A tax imposed by Federal or State government on the value of property owned by a
decedent. In 2009, the Federal Estate Tax only applied to property that a decedent
owned in excess of $3.5 million. For persons that died with less than $3.5
million, their property is exempt from Federal Estate tax. In 2010, the law has no Federal
Estate Tax regardless of the value of an estate, however Congress is likely to revert
back to a threshold amount like the one used in 2009.
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Executor or Executrix
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The name of the male or female named in a Will to carry out the wishes and terms
of a Will in Probate. In some states, an Executor or Executrix is referred to as
the Personal Representative of the decedent.
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Fiduciary
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A person who acts in a position of trust for the benefit of another. An Executor,
Executrix, Personal Representative, Administrator, Trustee, Guardian, Attorney in
Fact and Agent are all fiduciaries.
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Financial Power of Attorney
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A legal document whereby you appoint someone to manage your financial affairs if
you are incapacitated. This person very often is the same person you appoint in
your Healthcare Power of Attorney but may be different if you choose.
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Guardian
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A person who is appointed by the Court to exercise the legal rights and care for
an incapacitated person or a minor child. By naming a Guardian for your minor children
in your Will, you are able to indicate to the Judge your choice as to who you would
like to care for your children in your absence. Also known as a Conservator in some
states.
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Heir
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A person who receives property from a deceased persons estate. Often used to refer
to blood relatives.
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Inheritance
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property received from the Estate of a decedent.
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Intestacy or Intestate
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dying without a Will.
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Living Trust
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A type of revocable trust that can hold title to property and avoid probate. In
order to properly maintain a Living Trust, a Declaration of Trust must be prepared,
property must be transferred and the Trust funded, and the Trust must be maintained
and administered.
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Living Will
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A legal document that allows you to specify your choices as to life sustaining and life supportive medical treatment if you have a terminal condition or are in a coma or vegetative state. In some states it is also referred to as an Advance Directive.
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Power of Attorney |
A legal document whereby you can appoint an attorney in fact to act on your behalf.
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Probate
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The Court supervised process of wrapping up a deceased person’s estate and
affairs.
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Testator
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A person who has died with a Will that specifies their choices as to who will receive
his or her property.
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Trustee
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The person entrusted with the responsibility of managing assets in a trust for the
benefit of the Trust beneficiaries.
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