Glossary
Administrator. A
court-appointed person who
will manage your estate if
you die without a will.
Attorney-in-fact. An
individual designated in a
power of attorney to act as
the agent of the person who
executed the document.
Often referred to as an
Agent.
Beneficiary. A person
who receives benefits or
funds from a will, contract,
or insurance policy.
Durable Power of Attorney
for Health Care. A
written document in which an
individual designates
another person to make
health care and
health-related decisions in
the event that the
individual becomes
incapacitated.
Durable Power of Attorney
for Property. A written
document (often referred to
simply as a “Power of
Attorney”) in which an
individual designates
another person to make his
or her property and
property-related decisions
in the event that the
individual becomes
incapacitated and is unable
to do so.
Estate. An individual's
property and assets.
Estate tax. A tax that
is imposed at one's death on
the transfers of some types
of property. This is both a
federal tax and, in North
Carolina, a state tax. See
discussion at Estate Tax.
Executor. A person
named in a will who is
authorized to manage your
estate when you die. The
executor will collect the
property, pay off any debts,
and distribute your property
and assets according to the
terms of your will.
Fiduciary. A person or
institution that is legally
responsible for the
management, investment, and
distribution of funds.
Executors, Agents,
Attorneys-in-fact, and
Trustees are common examples
of Fiduciaries.
Gift Tax. A tax that is
imposed on the transfers of
some types of property as
gifts or for less than full
consideration. This is both
a federal tax and, in North
Carolina, a state tax. See
discussion at
Gift and Estate Tax Basics.
Grantor. The person who
transfers assets to another,
usually into a trust. In
the context of Trusts, often
referred to as a Settlor or
Trustor. The terms are
synonymous.
Gross estate. The total
property and assets that an
individual has or with
respect to which the
individual had the requisite
level of control.
Guardian. An individual
with the legal authority to
care for another.
Incapacity. The lack of
ability to act on your own
behalf. A court or often
the clerk of the superior
court makes a finding of
incapacity. Estate planning
and Elder Law attorneys must
also be adept at assessing
the capacity of clients, and
must be able to advise
health care providers with
respect to the legal
standards of incapacity.
Inter vivos trust. A
trust that is created during
a person's lifetime that
holds property for the
benefit of another.
Intestate. This is a
term used to refer to a
person who dies without a
will.
Joint tenancy with right of
survivorship. A title
that is often placed on
co-owned property. At the
death of one owner, the
other owner will be legally
entitled to sole possession
of the property, regardless
of what provisions are made
in a will.
Life estate. Also
popularly called “lifetime
rights”. A method of
holding real property in
which a person has a right
to the use of the property
for his life (the “life
tenant”) and another person
automatically receives title
to the property on the death
of the life tenant (the “remainderman”).
There may be more than one
life tenant or remainderman.
Living trust. A
revocable trust established
during a grantor's lifetime
that is used for the
placement of some or all of
the grantor's property.
Living will. A legal
document that declares what
your wishes with respect to
extraordinary treatment if
you should become terminally
ill or permanently
unconscious. Synonymous
with a Declaration of a
Desire for a Natural Death.
See discussion at Advance
Directives.
Marital deduction. A
federal tax deduction that
allows one spouse to pass
his or her estate to the
other spouse without having
to pay estate or gift taxes.
Power of appointment. A
right given to another that
allows the other to decide
how to distribute your
property. A "general" power
of appointment allows the
person named to give or
“appoint” property to
himself, his estate or his
creditors or the creditors
of his estate. A "limited"
or "special" power of
appointment places
restrictions on who may
receive distributions.
Power of Attorney. A
written document that allows
one person to act on behalf
of another.
Probate. A process
whereby a court reviews your
will to make sure that it is
authentic and allows others
to make challenges to your
will.
State death or inheritance
taxes. Taxes that may
be imposed by the state
where you live or where your
property is located after
your death. North Carolina
has an estate tax. See
discussion at Estate
Taxes.
Tenancy by the Entireties
property is a form of real
property ownership unique to
North Carolina and a small
number of other states.
This form of ownership is
similar to Joint Tenancies
with Rights of Survivorship
property and applies to
married couples only. In
North Carolina, real
property acquired by a
married couple is presumed
to be entireties property
absent clear language in the
deed to the contrary.
Tenancy in Common. A
form of real property
ownership by multiple owners
in which each owner owns a
certain fraction of the
whole but has a full and
complete right to the use of
the property. Upon sale an
owner will receive his pro
rata share of the proceeds.
An owner can sell, devise by
will or gift his share, and
can also petition a court to
have the property divided
among the owners (and
perhaps sold).
Trust. A written
document providing that your
property be held by one (the
"trustee") for the benefit
of another (the
"beneficiary"). A trust may
be created by a grantor as
an inter vivos trust during
the grantor’s life or after
death pursuant to the terms
of a will or an older inter
vivos trust (after death
trusts being referred to as
testamentary trusts).
Trustee. A person named
in a trust document who will
manage the property owned by
the trust and distribute the
trust income or property
according to the terms of
the trust document. A
trustee may be an individual
or a business.
Will. A document that
directs how your property
shall be distributed upon
your death.
