The Law Dictionary for Everyone
A living trust is a legal document that spells out an individual’s wishes concerning his or her assets, dependents, and other affairs, which are to be handled by another person, called a “trustee.” A trust is created by the individual, called a “Trustor,” at any point during his life, appointing a trustee, and detailing what is to be dealt with, […]
Read moreThere are two distinctly different definitions of the term land trust: the first refers to a non-profit organization’s stewardship over a piece of land for the purpose of preserving it, or to assist in its conservation. The second type of land trust is an agreement in which an individual (the “trustee”) agrees to hold title or ownership of a piece […]
Read moreA Last Will and Testament, now most commonly referred to simply as a “Will,” is a legal document in which an individual records his wishes as to how his possessions and affairs should be handled after his death. The individual making the Will may specify, for example, who should take custody of his children, and which heirs should be given […]
Read moreWhen a trust is created, the person creating the trust (the “grantor”) transfers ownership of certain specified property and financial assets to it for the benefit of others he has named as “beneficiaries.” A third party (a “trustee”) is designated by the grantor to manage the trust according to the directions given. In a regular, or “revocable trust,” the grantor […]
Read moreIn general terms, an incompetent individual lacks the qualifications or ability to do something successfully. In regards to the law, however, the term incompetent refers to a person’s inability to understand legal proceedings or transactions, or lack of metal capacity to understand the consequences of his actions. Incompetence can be caused by a variety of factors including mental illness, trauma, […]
Read moreAn heir is a person entitled to inherit property and other assets from an individual who has died, based on the rules of descent and distribution, according to state laws. An heir is usually the spouse or child of the decedent, but if neither of these exist, it can be another close relative. In modern times, the term heir is […]
Read moreThe legal significance of a homestead is the privilege of a homeowner to remain in his home, even in the face of creditor claims or bankruptcy. For this purpose, a homestead includes the family home, the real property on which it sits, and any out buildings or appurtenances. Because the purpose of the homestead is to protect a family from […]
Read moreAn executor is an individual entrusted with the duties and responsibilities of taking care of a person’s earthly affairs after death. In simple terms, the term executor refers to the person named or nominated by an individual, called the “testator,” to carry out his or her wishes as stated in a will. An executor of an estate has many other […]
Read moreA gift tax is a tax placed on property that is transferred from one person to another without the giver receiving something of equal value in return. The giver, not the receiver, of a gift is required by the IRS to file a gift tax return, and must pay any gift tax due, even if the transfer of property was […]
Read moreThe legal term conservatorship refers to the appointment of a guardian to manage the affairs of an individual who is physically or mentally unable to care for himself. A conservator is appointed by the court, and may be appointed to manage only the individual’s financial affairs, or to manage the individual’s “person,” seeing to the activities and needs of daily […]
Read more