Estate Planning Terms
Legal Glossary
Estate planning involves specialized legal terminology. This glossary defines common terms you'll encounter when creating a trust, will, or other estate planning documents. Understanding these terms helps you make informed decisions about protecting your family.
B
Beneficiary
A person or entity designated to receive benefits from a trust, will, or other legal instrument. Primary beneficiaries receive assets first; contingent beneficiaries receive assets if primary beneficiaries are unable to.
C
Community Property
A legal framework in California and eight other states where assets acquired during marriage are presumed to be owned equally by both spouses, regardless of who earned the income. This affects how property is divided at death or divorce.
E
Executor (Personal Representative)
The person named in a will to carry out its instructions and manage the probate process. In California, this person is officially called the 'personal representative.'
G
Grantor (Settlor, Trustor)
The person who creates and typically funds a trust. Also called 'settlor' or 'trustor' in legal documents. The grantor establishes the trust's terms and designates beneficiaries.
H
Healthcare Directive (Advance Directive)
A legal document that specifies your wishes for medical care if you become unable to communicate them yourself. Includes living will provisions and healthcare power of attorney.
I
Incapacity
A legal state where a person is unable to make decisions for themselves due to mental or physical impairment. A revocable trust provides seamless management of assets during incapacity without court involvement.
Irrevocable Trust
A trust that cannot be changed or revoked once established without the consent of beneficiaries. Assets in an irrevocable trust are generally removed from the grantor's taxable estate and protected from creditors.
L
Living Trust (Inter Vivos Trust)
A trust created during the grantor's lifetime, as opposed to a testamentary trust created by a will. Most family trusts are revocable living trusts that allow the grantor to maintain control while avoiding probate.
P
Power of Attorney
A legal document authorizing someone (your 'agent' or 'attorney-in-fact') to act on your behalf in financial or legal matters. A 'durable' power of attorney remains valid even if you become incapacitated.
Pour-Over Will
A will designed to work with a living trust, directing any assets not already in the trust to 'pour over' into it at death. Ensures nothing is inadvertently left out of the trust.
Probate
The court-supervised legal process of validating a will and distributing assets after death. In California, probate can take 12-18 months. Statutory fees follow a sliding scale under Probate Code §10810—for a $1 million estate, approximately $46,000 in combined fees. Trusts avoid probate.
Q
QTIP Trust
Qualified Terminable Interest Property Trust. Provides income to a surviving spouse while preserving assets for children from a prior relationship. Common in blended family estate planning.
R
Revocable Trust
A trust that can be changed, modified, or revoked by the grantor during their lifetime. Provides probate avoidance and incapacity planning while maintaining flexibility. Becomes irrevocable upon the grantor's death.
S
Separate Property
Assets owned by one spouse that are not community property—typically assets acquired before marriage, inheritances, and gifts received individually. Keeping separate property separate requires careful documentation.
Special Needs Trust (Supplemental Needs Trust)
A trust designed to provide for a person with disabilities without disqualifying them from government benefits like SSI or Medi-Cal. Assets supplement rather than replace public assistance.
Successor Trustee
The person designated to manage a trust after the original trustee dies, becomes incapacitated, or resigns. In a revocable living trust, the grantor is typically the initial trustee with a successor named.
T
Trust
A legal arrangement where a person (grantor) transfers assets to be held and managed by a trustee for the benefit of beneficiaries. Trusts can avoid probate, provide asset protection, and enable sophisticated estate planning.
Trust Funding
The process of transferring assets into a trust. A trust document alone doesn't avoid probate—assets must be properly titled in the trust's name or have the trust designated as beneficiary.
Trustee
The person or institution responsible for managing trust assets according to the trust document's instructions. A trustee has fiduciary duties to act in the best interests of beneficiaries.
W
Will (Last Will and Testament)
A legal document that directs how your assets should be distributed after death and names guardians for minor children. Unlike a trust, a will must go through probate court.
Last updated: January 2026