Intestate - not having signed a will before one dies; a person who dies without having signed a will. Estate: Generally, all the property you own when you die. You should discuss your concerns and requirements with Duffy Lawyers. You may wish your directive to apply at any time when you are unable to decide for yourself, or you may want it to apply only if you are terminally ill. Personal Representative Another name for an executor or administrator. Inheritance Tax: Tax imposed by some states on the amount received by a particular heir or beneficiary. There is no limit to the number of people you can give gifts to which qualify for the annual exclusion.
For a will to be effective and withstand any challenges, it must meet certain legal requirements in the way it is written and witnessed. Even where a will is considered valid, having met all the formal legal requirements, if the words used in the will could have more than one meaning or do not accurately and precisely express your wishes, your will may end up being interpreted by the court. Domicile: The state or county that is the primary residence of a person. A-B Trust A trust that includes a tax-planning provision that lets you provide for your surviving spouse and keep control over who will receive your assets after your spouse dies. Gift tax: Tax on gifts made during a person's lifetime. Right to die: The right to decide not to have life prolonged by extraordinary, artificial means. See also demonstrative bequest, general bequest, specific bequest Bond: An insurance policy used to ensure a person having a position of trust frequently called a fiduciary will do their job and not misuse or steal funds they are controlling.
Holographic Will A handwritten will. See: Business Formation by a Paralegal. An alternative to per stirpes, described above. Estate Assets and debts left by an individual at death. Your heirs are the ones who will inherit your property if you die with no valid Will or Trust in effect. Also known as pro rata. The amount is increased periodically.
The eight states with such laws are known as community property states. Disposition: The parting with or giving away of property. A personal representative must also be appointed If a person dies without a will intestate. Durable power of attorney for health care: A document established by an individual the principal granting another person the agent the right and authority to handle matters related to the health care of the principal. Transfer Tax: A tax levied when ownership of an asset is given, bequeathed or transferred to another. If the surviving spouse is likely to die in the near future, however, tax problems can be made worse by relying on the marital exemption.
A Trustee may be an individual or a bank or trust company licensed to serve as a Trustee. K O V X Y Z Unified Credit The amount each person is allowed to deduct from federal estate taxes owed after death. These types of trusts are also known as complex trusts. Joint Ownership: Any arrangement through which title to an asset is shared by more than one owner. Often used in reference to the By-Pass Trust discussed above. Adoptive parents then have the same rights and responsibilities as the biological parent s who children were born to them.
The executor, if not a beneficiary, is able to witness the signing of the will. The person whose rights are being terminated no longer has parental rights. Living Will: A document which expresses your desire not to be kept alive by medical life-support systems in the event of a terminal illness. The inheritance laws in Australia are complex and, if you do not have a will, your estate may be distributed other than how you would want or expect it to be distributed. Most comprehensive estate plans include a General Durable Power-of-Attorney. Testate The state of having died leaving a valid will for probate. Accumulation trust: A trust where trust income is retained and not paid out for longer than a year to beneficiaries until certain conditions have been satisfied.
May also be called a guardian. By dividing the decedent's estate into two trusts at the first death, each spouse can pass the maximum amount of property allowed to avoid federal estate taxes. Referred to in some states, e. The Trust Estate can include real estate, bank accounts, stocks, bonds, brokerage accounts, partnership interests, tangible personal property, and many other types of financial and legal interests. Donee: Someone who receives a gift. The perpetual and legal transfer of all parental rights from one person or couple to another person or couple. Some trusts can go on in perpetuity forever , but most types of trusts have a maximum duration or life established by law.
There are different ways to measure estates: The taxable estate property subject to estate taxation , the probate estate property that must go through probate and the net estate the net value of the property. A will is a revocable written document which allows you the testator to specify your wishes as you want them to be carried out after your death. For this reason, great care needs to be taken when choosing an attorney. K O V X Y Z Gain The difference between what you receive for an asset when it is sold and what you paid for it. Annual Exclusion Amount you can give someone each year without having to file a gift tax return or pay a gift tax. A person may be permanently or temporarily incompetent. It also lets both spouses use their federal estate tax exemptions.