The Law Dictionary for Everyone
When 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 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 moreThe term “assets” refers to things owned by people or entities that have, or are expected to have, economic value. Assets can come in many forms including cash, bank accounts, investments, collectible items, personal possessions, and real property. The value of an individual’s or entity’s assets is offset by the amount of their debts, and comes into play when seeking […]
Read moreEstate taxes are taxes imposed by the federal government on property that is transferred after a person dies, whether according to deceased person’s will or other estate planning documents, or by order of the probate court. While it is commonly known that federal estate taxes apply in certain cases, states may also tax such inheritances. To explore this concept, consider […]
Read moreTo put it simply, a codicil is an amendment to an existing will. Creating a new will when circumstances change, or when the individual changes his or her mind, can be expensive. If the desired change or addition is not complex, stating the new wishes in a codicil is the easiest, and least expensive, way to update a will. Codicils […]
Read moreIn its most basic terms, a “beneficiary” is a person or entity that receives financial or other benefits from a patron or benefactor. While the concept of a beneficiary is commonly thought of in relation to wills and trusts, it is also used in connection with insurance policies and contracts. The beneficiary of an insurance policy is the individual that […]
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