Administrator
An individual or an entity (for example,
the trust department of a bank) that is
appointed by the court to handle the affairs
of a person who has died without leaving
a will.
Assets
Things of value owned by a person, family,
or business everything of value that's owned property.
Beneficiary
A person named in a will to receive certain
property of the testator. Also, a person
who receives income or assets from a trust
a person who benefits from the existence
and operations of a trust.
Codicil
A supplement to a will, that adds to, subtracts
from, qualifies, modifies, or revokes the
provisions of a prior (existing) will.
Corpus of a trust
Term used to designate the body of assets
(property) placed in a trust. The trust
holds title to all property included in
the corpus.
Decedent
The person who has died.
Escheat
Assignment of property to the state because
there is no verifiable legal owner typically,
where there is no heir to property.
Estate
Everything of value (all property) that
a person owns while living or at the time
of death.
Estate tax
A tax placed on the net value of a decedent's
estate at the time of death; the tax rate
increases as the size of the estate increases.
Both the State of Utah and the federal government
are legally authorized to assess and collect
taxes on estates.
Executor or Executrix
A person named in the decedent's will to
serve as personal representative in probating
the decedent's estate. The designated person
may decline to serve as personal representative.
Fair market value
The market price for an asset as would be
agreed to by a willing buyer and a willing
seller.
Fee simple ownership
Property ownership where one person or entity
holds the entire ownership interest.
Gift
A voluntary transfer of property for which
nothing of value is received in return.
If Internal Revenue Service is to recognize
a transfer as a gift, the donor(s) must
unconditionally transfer all title and control
of the property to the recipient(s) at the
time the gift is given.
Gifting
An estate planning tool used to implement
an estate plan by making gifts to intended
successors of assets owned by the person(s)
making the gifts.
Grantor
The person placing property in a trust.
Heir
A person entitled by law to inherit part
or all of the estate of an ancestor who
died without leaving a valid will.
Holographic will
A will entirely hand-written by the testator.
The date and all words in the will including
the signature must be in the handwriting
of the testator. The signature of the testator
can be, but need not be, witnessed.
Inheritance tax
A tax levied by the county of residence
of a person who inherits. The rate of taxation
depends on the size of the inheritance and
the relationship between the person who
inherits and the deceased.
Intergenerational succession
Succession in property ownership in which
the property is transferred from one generation
to another; usually from members of an older
generation to members of a younger generation.
Intangible property
Property that only represents real value
such as bonds, stock certificates, promissory
notes, certificates of deposit, bank accounts,
contracts, leases, and other similar items.
Intestate succession
The distribution of property to heirs according
to the statutes of the State of Nebraska
upon the death of a person who owned the
property but did not leave a valid will.
Irrevocable trust
A trust that cannot be changed after it
is established.
Joint tenancy
A form of joint asset ownership by two or
more persons in which each person has an
equal undivided ownership interest that
passes directly to the surviving joint tenant(s)
upon the death of any joint tenant. Real
estate held in joint tenancy does not pass
through probate following the death of a
person with an ownership interest. Personal
property such as fixtures and equipment,
inventories, or vehicles held in joint tenancy
does not pass through probate if the right
of survivorship is stated in the title to
the property. Any joint tenant can petition
the court and compel partition of a joint
tenancy asset.
Lateral succession
Succession in property ownership in which
the property is transferred between members
of the same generation.
Letters of Administration
Document issued by the probate court giving
the administrator authority to administer
the estate.
Letters Testamentary
Document issued by the probate court giving
the executor authority to administer the
estate under the provisions of the decedent's
will.
Liabilities
Amounts owed by a person, family, or business
everything owed to others.
Living trust
A trust established during the lifetime
of the grantor.
Partition
The judicial separation of the respective
interests in property of joint owners or
tenants in common so each may take possession,
enjoy, and control his or her share of the
property.
Personal representative
An executor, administrator, or anyone else
who is in charge of a decedent's property.
Probate
A court procedure for settling the personal
and business affairs of a decedent by formally
proving the validity of a will and establishing
the legal transfer of property to beneficiaries,
or appointing an administrator and supervising
the legal transfer of property to heirs
if there is no valid will.
Revocable trust
A trust that can be changed after it is
established. Assets can be added or removed
from the corpus of the trust, the beneficiary(ies)
can be changed, and other changes including
termination of the trust, are allowed. A
revocable trust becomes irrevocable upon
the death of the grantor.
Sound mind
The testator possesses sound mind for the
purposes of making a will if he or she:
(1) understands the nature of the act of
making a will or codicil thereto, (2) knows
the extent and character of the property
subject to the will, (3) knows and understands
the proposed disposition of that property,
and (4) knows the natural objects of his
or her bounty (i.e. his or her heirs). Whether
the testator was of sound mind is tested
(determined) by the state of the testator's
mind at the time the will or codicil is
executed (written and signed).
Succession
A term used to describe transfers of asset
ownership through inheritance, gifting,
preferential sale, or other means that fulfill
the wishes of the person(s) with present
ownership of the assets.
Tangible property
Property that is capable of being perceived
by the senses _ generally, tangible property
is real estate, personal property, or moveable
property that has value of its own and is
not merely a representation of real value.
Land, machinery, buildings, business equipment,
inventories, homes, and furnishings are
examples of tangible property.
Tax basis
The owner's cost of an asset for income
and estate tax purposes as determined under
the Internal Revenue Code and IRS regulations.
(See NF 93-144, "Determining Property
Basis," for detailed information and
examples.)
Tenants in common
A form of asset ownership in which two or
more persons have an undivided interest
in the asset, where the ownership shares
are not required to be equal, and where
ownership interests can be inherited.
Testamentary trust
A trust established after the death of the
grantor under the provisions of the grantor's
will.
Testator
One who writes or has written and signs
a will.
Trust
A legal mechanism that separates the responsibility
of owning property from the benefits of
owning property. Property placed in a trust
is owned by the trust, and no longer is
owned by the grantor(s).
Trust declaration or trust instrument
A document defining the nature and duration
of the trust, the powers of the trustee,
and identifying the trust's beneficiary(ies).
Trustee
The person or legal entity such as a bank
or trust company who receives property and
places it in a trust, and manages the trust
for the benefit of the beneficiary or beneficiaries
in ways consistent with the trust declaration
and good business practice.
Undivided interest
The interest or right in property owned
by each joint tenant or tenant in common.
Each tenant has equal right to use and enjoy
the entire property. Unless an agreement
to the contrary exists, each tenant is entitled
to an income share proportional to his or
her ownership interest. If the property
is sold, the sale proceeds are shared among
tenants in proportion to the ownership shares
held by each tenant.
Will
A person's written declaration of desires
for disposal of his or her property after
death.
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