Wills and Probate Legal Terms

Wills and Probate Legal Terms

Oral will: An oral will that has not been recorded in writing. Only a few states accept oral wills. Mirror wills: Two people, usually spouses, can have identical wills, except that they designate each other as heirs. Unlike a testamentary contract, the survivor is free to change the terms after the death of the first person. Also called “mutual wills”. Some of the words used to describe wills, trusts and estates; The description of planning and managing your affairs has a history of 1,000 years. You can`t meet them anywhere else. Understanding these legal terms will make the process easier and less mysterious. The process by which assets are returned to the government. This happens when the legal heirs have not been located or have not come forward. Division (action for) = Any beneficiary or heir may bring an action for partition or division of inherited property. If it cannot be divided equally or divided according to the terms of the will, it must be sold and the money from the sale divided. Life estate – The interest in real estate owned by a life beneficiary (also known as a life tenant) with the statutory right under state law to use the property for their lifetime, after which title completely passes to the rest (the person named in the deed, trust deed or other legal document as the ultimate owner at the end of the life estate).

Estate tax = federal tax paid by the estate on an estate over $5,590,000 (2018) or combined estates paid for a married couple of twice as much. An estate is taxed where it is sampled. Texas has no estate or estate tax. Beneficiaries or heirs who are domiciled or domiciled in another State or country may be subject to inheritance tax there. Trust – An agreement where ownership is legally held by an individual or business trustee in favour of another beneficiary called the beneficiary and who is the fair owner of the property. Trust certificate: Verification of the existence of a trust, which usually identifies the trustees and explains the powers of the trust, but does not disclose the assets, beneficiaries or terms of the trust. Disclaimer – The waiver or refusal to accept a gift or bequest, or the receipt of insurance, pension and other products under the designation of a beneficiary so that ownership can be passed on to other purchasers. In order to be a qualified waiver and therefore not to be treated as a gift of the waiver (the person making the waiver), the waiver must be made within nine months and before the renouncer has accepted an interest in the property to avoid a tax-triggering event. Given the currently high amounts of gift and inheritance tax exemption, it may be possible, in many cases, to refrain from achieving non-tax targets even after this period. State laws dealing with waiver may differ, and some wills and trusts may contain explicit provisions governing what happens to assets or interests that are rejected. Be sure to consider all of these issues before denying this. Guardian: If you have minor children, you can appoint a guardian who will be legally responsible for their care after your death.

Executor – A person named in a will and appointed by the court to enforce the terms of the will and administer the estate of the deceased. May also be appointed as a personal representative. If a woman, can be called the executor. Disinheritance: To legally prevent someone from inheriting from you upon your death. Trustee – An individual, bank or trust company responsible for holding and administering the assets of the trust (also commonly referred to as a “trustee”). The term generally includes original (original), supplemental and subsequent trustees. A trustee has a duty to act in the best interests of the trust and its beneficiaries and in accordance with the terms of the trust indenture. A trustee must act in person (unless delegation is expressly authorized in the trust indenture), with the exception of certain administrative functions. Non-resident alien – A person who is neither a resident nor a citizen of the United States. However, a non-resident alien may be subject to federal estate or estate tax in respect of certain assets located in the United States.

An estate tax treaty between that person`s country of origin and the United States may affect this outcome. Family Office: In estate planning, large estates involving multiple generations require constant management and supervision by a professional team. The Family Office refers to a group of professionals who supervise and coordinate the legal, tax, accounting and business aspects of one or more families.

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