Additional Uncommon Will and Estate Planning Terms with Citations

1. Administrator

Definition: A person appointed by the court to manage and distribute the estate of someone who
dies without a will.
Citation: Black's Law Dictionary.
Example: The court appointed an administrator to handle the estate since the decedent died
intestate.

2. Ascertainable Standard

Definition: A standard used in trusts that provides clear guidance on the distribution of trust
income or principal based on the beneficiary's needs, such as health, education, maintenance, or
support.
Citation: Internal Revenue Code (IRC) § 2041.
Example: The trust included an ascertainable standard to determine distributions based on the
beneficiary's health and education needs.

3. Beneficiary Designation

Definition: A provision in an insurance policy, retirement plan, or other financial account that
allows the owner to name a person or entity to receive the benefits.
Citation: Black's Law Dictionary.
Example: The life insurance policy's beneficiary designation named the decedent's spouse as the
primary beneficiary.

4. Crummey Trust

Definition: An irrevocable trust that allows gifts to qualify for the annual exclusion from gift tax,
typically used for life insurance or other asset transfers.
Citation: Crummey v. Commissioner, 397 F.2d 82 (9th Cir. 1968).
Example: The parents established a Crummey trust for their children, allowing them to make
annual gifts without incurring gift tax.

5. Decedent

Definition: A person who has died.

Citation: Black's Law Dictionary.
Example: The executor managed the decedent's estate according to the terms of the will.

6. Dynasty Trust
 Definition: A long-term trust designed to pass wealth from generation to generation without
incurring transfer taxes.
Citation: Black's Law Dictionary.
Example: The wealthy family set up a dynasty trust to provide financial security for their
descendants.

7. Executor/Executrix

Definition: A person named in a will to administer the estate of the decedent.

Citation: Black's Law Dictionary.
Example: The will appointed the eldest son as the executor of the estate.

8. Grantor Retained Annuity Trust (GRAT)

Definition: An irrevocable trust where the grantor transfers assets and retains an annuity for a set
period, with the remainder passing to beneficiaries.
Citation: IRC § 2702.
Example: The business owner used a GRAT to transfer future appreciation of the business to his
children with minimal gift tax.

9. Health Care Proxy

Definition: A legal document that designates someone to make medical decisions on behalf of
another person if they become incapacitated.
Citation: Black's Law Dictionary.
Example: The health care proxy appointed the decedent's daughter to make medical decisions if
he was unable to do so.

10. In Terrorem Clause

Definition: A provision in a will or trust that threatens to disinherit a beneficiary if they contest the
document.
Citation: Black's Law Dictionary.
Example: The will included an in terrorem clause to discourage heirs from challenging its terms.

11. Intestate Succession

Definition: The process by which the property of a person who dies without a will is distributed
according to state law.
Citation: Uniform Probate Code § 2-101 et seq.
Example: The estate was distributed according to intestate succession laws since the decedent did
not leave a will.

12. Irrevocable Life Insurance Trust (ILIT)

 Definition: A trust designed to own and manage life insurance policies, keeping the proceeds out
of the grantor's taxable estate.
Citation: Black's Law Dictionary.
Example: The ILIT was established to prevent the life insurance proceeds from being included in
the taxable estate.

13. Letters Testamentary

Definition: A document issued by a probate court authorizing the executor to administer the
estate.
Citation: Black's Law Dictionary.
Example: The executor obtained letters testamentary to begin managing the decedent's estate.

14. Marital Deduction

Definition: A deduction allowing for the transfer of an unlimited amount of assets to a surviving
spouse free of estate and gift taxes.
Citation: IRC § 2056.
Example: The estate plan utilized the marital deduction to transfer assets to the surviving spouse
without incurring estate taxes.

15. Pour-Over Will

Definition: A will that provides for the transfer of any remaining assets into an existing trust upon
the testator's death.
Citation: Black's Law Dictionary.
Example: The pour-over will ensured that any assets not previously transferred to the trust would
be added to it after death.

16. Probate Court

Definition: A specialized court that handles matters related to the administration of estates and
the validation of wills.
Citation: Black's Law Dictionary.
Example: The executor filed the will with the probate court to begin the estate administration
process.

17. Qualified Personal Residence Trust (QPRT)

Definition: An irrevocable trust used to transfer a primary residence or vacation home out of the
estate at a reduced gift tax cost.
Citation: IRC § 2702.
Example: The couple created a QPRT to transfer their vacation home to their children while
minimizing gift taxes.
18. Revocable Living Trust

Definition: A trust created during the grantor's lifetime that can be altered or revoked by the
grantor and avoids probate.
Citation: Black's Law Dictionary.
Example: The revocable living trust was established to manage the grantor's assets and provide
for a smooth transition upon death.

19. Self-Proving Will

Definition: A will that includes an affidavit signed by the testator and witnesses, making it easier to
validate in probate court.
Citation: Uniform Probate Code § 2-504.
Example: The self-proving will included an affidavit to simplify the probate process.

20. Spendthrift Trust

Definition: A trust that restricts the beneficiary's ability to access or transfer their interest,
protecting the trust assets from creditors.
Citation: Black's Law Dictionary.
Example: The spendthrift trust protected the beneficiary's inheritance from being squandered or
claimed by creditors.

21. Stepped-Up Basis

Definition: The readjustment of the value of an appreciated asset for tax purposes upon
inheritance, based on its fair market value at the date of the decedent's death.
Citation: IRC § 1014.
Example: The beneficiaries received a stepped-up basis in the inherited property, minimizing
capital gains taxes upon sale.

22. Survivorship Clause

Definition: A provision in a will or trust requiring a beneficiary to outlive the testator by a specified
period to inherit.
Citation: Black's Law Dictionary.
Example: The survivorship clause required the beneficiaries to survive the testator by 30 days to
receive their inheritance.

23. Testamentary Capacity

Definition: The legal and mental ability to make or alter a valid will.
Citation: Restatement (Third) of Property: Wills and Other Donative Transfers § 8.1.
Example: The court evaluated the testator's testamentary capacity to ensure the will was valid.
24. Totten Trust

Definition: A type of revocable trust created by a bank account in which the depositor names a
beneficiary to receive the funds upon the depositor's death.
Citation: Black's Law Dictionary.
Example: The Totten trust allowed the depositor's niece to inherit the bank account funds directly.

25. Uniform Transfers to Minors Act (UTMA)

Definition: A law that allows minors to receive gifts, such as money, patents, royalties, real estate,
and fine art, without the aid of a guardian or trustee.
Citation: Uniform Transfers to Minors Act (UTMA).
Example: The grandparent used a UTMA account to transfer funds to their grandchild without
setting up a formal trust.

26. Will Substitute

Definition: An arrangement that allows property to pass upon a person's death without going
through probate, such as a trust, joint tenancy, or beneficiary designation.
Citation: Black's Law Dictionary.
Example: The revocable living trust acted as a will substitute, allowing the assets to bypass
probate.