Glossary of Estate Planning Terms, Part Three

 

Estate planning involve many terms that you may not be familiar with, but do not worry.  In this series, our estate lawyer in Cary NC is defining some of the most commonly used terms so that you can be better prepared when planning your estate. In the first post, we covered A-H. Next up, we are covering terms I-P.

Glossary | Estate Lawyer in Cary NC

Insurance Trust

A trust created to have life insurance on a person or persons that is not included in the gross estate at the time of his or her death.

Inventory

A list of all the assets of a decedent or trust.

Irrevocable Trust

A trust that cannot be overturned or modified by a grantor.

Joint Tenancy

When two or more people own property together.

Life Beneficiary

Someone who receives benefits from a trust or other arrangement for the rest of his or her life.

Life Estate

Ownership of property that lasts as long as the life beneficiary is alive.

Living Trust

A trust one creates to keep his or her assets protected. Typically it is a revocable trust.

Marital Deduction

A federal estate and gift tax deduction that is unlimited, allowing for assets to be passed between spouses without being subject to taxes.

Marital Trust

A trust that holds property for the surviving spouse in an AB trust. It is designed to qualify for the marital deduction so that the surviving spouse does not have to pay taxes on the estate.

No-Contest Clause

A provision that overturns the original will or trust’s instructions if someone sues for more money, causing them to lose any inheritance rights he or she may have had. The clause is permissible in certain states.

Operation of Law

The process by which assets are passed on when someone dies based on state laws or titling arrangements rather than under the terms in the will.

Visit back soon, to learn more terms that will help you with estate planning.

Klish and Eldreth, PLLC

Remember, if you don’t have an estate plan in place or haven’t reviewed yours in several years, now might be the best time to start. Our estate lawyer in Cary NC is here to help you get your estate planning in order and ready should you pass in an untimely manner or become incapacitated at some point. It’s better to be safe than sorry when it comes to an estate plan. Contact our office today to get started estate planning.

As always, feel free to contact us at our office to schedule a consultation with if you are looking for a lawyer to represent you in other legal matters. We are here to assist you with small business needs, trademarking, copyrighting and  DWI issues.

If you missed our previous blogs, containing even more terms to know, be sure to visit back with them, below:

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