Definitions

ADVANCE HEALTH CARE DIRECTIVE

A document that gives someone else the ability to make health care decisions for the Principal, and gives instructions for making those decisions.

AGENT

The person or entity who is authorized to act by the Principal of a Financial Power of Attorney or Advance Health Care Directive.

ASSIGNMENT

A way to transfer assets that do not have a title (such as tangible personal property or a promissory note). Also the act of transferring the assets.

BENEFICIARY

A person or entity that receives assets.

CAPACITY

The mental ability required to make a document or to enter into a legal agreement. The level of capacity required depends on the type of document or the complexity of the agreement.

DEED

A document that transfers real property.

DURABLE POWER OF ATTORNEY FOR HEALTH CARE

A document that gives someone else the ability to make health care decisions for the Principal.

EXECUTOR

The person appointed by a probate court to administer a deceased person’s probate estate. This person is nominated in a Will but cannot serve as Executor until appointed by a judge.

FIDUCIARY

A person or entity that is entrusted to manage assets on behalf of someone else. This includes Trustees, Executors, and Agents.

FINANCIAL POWER OF ATTORNEY

A Power of Attorney that applies to finances only.

IRREVOCABLE (TRUST)

No ability to revoke (terminate) or amend (change).

LIVING WILL

A document that sets out your end-of-life wishes.

PERSONAL PROPERTY

Any asset that is not real property. This includes tangible personal property as well as bank accounts, copyrights, patents, promissory notes, and business interests.

POWER OF ATTORNEY

A document that gives someone else the ability to make decisions for the Principal.

PRINCIPAL

The person who sets up a Power of Attorney, Financial Power of Attorney or Advance Health Care Directive.

REAL PROPERTY

Land. Real property can be developed (with buildings on it) or undeveloped (no buildings on it).

REMAINDER DISTRIBUTION

A gift of everything left over after the specific gifts have been distributed.

REVOCABLE (TRUST)

The ability to revoke (terminate) or amend (change).

REVOCABLE LIVING TRUST

A Trust that can be revoked or changed and that is established during the Settlor/Trustor’s lifetime.

SETTLOR

The person who sets up the Trust. (Also called a Trustor.)

SPECIFIC GIFT

A gift of a specific item, such as your wedding ring, your house or a specific dollar amount (ie: $10,000).

TANGIBLE PERSONAL PROPERTY

Personal property that you can touch, such as jewelry, vehicles, furniture, collections, art, books, clothes and other household items.

TESTATOR

The person who sets up the Will/the person whose Will it is.

TRUST

A document that sets out the Settlor/Trustor’s wishes and that appoints a Trustee to administer the Trust estate.

TRUSTEE

The person or entity that manages the assets in a Trust and distributes the assets according to the Trust.

TRUSTOR

The person who sets up the Trust. (Also called a Settlor.)

WILL

A document that nominates an Executor and spells out how probate assets are to be distributed on death.

WILL, POUROVER

A Will that gives your estate to your Trust (Estate "pours over" into your Trust).