The portion of a deceased spouse’s estate that may be passed to the surviving spouse without becoming subject to Federal Estate Tax. It is unlimited (may be as much as 100 percent of the adjusted gross estate). In no event may the deduction exceed the net value of the property passing to the surviving spouse in a qualifying matter.

A person named for an office, position, or duty; in trust business, usually the person, firm, or corporation in whose name registered securities are held.

A term used in the distribution of property. If by a Will an estate is to be distributed equally per capita, each named individual will receive an equal share of the estate property. Compare this to the other common method of dividing property: Per Stirpes.

A term used in the distribution of property. If by a Will an estate is to be distributed equally per stirpes, an equal share of the estate property is given to each named family branch regardless of how many people are in each branch. Compare this to the other method of dividing property: Per Capita.

An individual or trust institution appointed in a Will to settle the estate of a person who has died.  The current term used for the executor of an estate.

A term referring to the transfer of property from one estate to another estate or trust, triggered by the occurrence of an event such as death. Example: Property disposed of by a Will “pours over” into an existing trust.

A document, sometimes witnessed and acknowledged, authorizing the person named therein to act as agent, called attorney in fact, for the person signing the document. If the attorney in fact is authorized to act for his principal in all matters, he has a general power of attorney; if he has authority to do only certain specific things, he has a special power of attorney. If the authority granted in the power of attorney survives the disability of the principal, the attorney in fact has a durable power of attorney. If the authority granted in the power of attorney commences in the future only upon the occurrence of a specific event or contingency, the power of attorney is known as a springing power.

1. One who employs an agent to act for him.
2. One who is primarily liable on an obligation.
3. The property of an estate other than the income from the property; the same as capital or corpus.

In general, all charitable foundations except those deriving substantial support from the public. They fall into two categories: private operating foundations, those where substantially all of the assets and income are used to carry on its exempt function, e.g., a museum; or private non-operating foundations, which include most family foundations.

The process of proving the validity of a Will in court and executing its provisions under the guidance of the court. When a person dies, the Will may be filed before the proper officer of the proper court, giving the court jurisdiction in the matter of enforcing the document. This is called “filing the Will for probate.” When the Will has been filed, it is said to be “admitted to probate”. The process of probating the Will involves recognition by the court of the personal representative named in the Will (or appointment of an administrator if none has been named), the filing of proper reports and papers as required by law, determination of validity of the Will if it’s contested, and distribution and final settlement of the estate under the supervision of the court.

A term applied to a rule laid down by statute or by judicial decision which authorized a fiduciary to apply the standard of a prudent investor instead of selecting investments according to a list prescribed by statute or by some governmental agency under authority of law; formerly known as the American rule or the Massachusetts rule. The fiduciary is responsible for performing their duties to the standards of a “Prudent Man.”

A terminable interest that will qualify for the marital deduction if an appropriate election is made by the donor or personal representative. In order to be QTIP property, the surviving spouse must be entitled to all of the income of the property during their life and no person, including the grantor, may have the right to appoint the property to anyone other than their spouse during the surviving spouse’s life. The major benefit of a QTIP marital trust to a grantor is that, at the surviving spouse’s death, the remaining trust property is not subject to a general power of appointment in the surviving spouse, but instead passes to beneficiaries selected by the grantor.

The property that remains after the testator has made provision out of his net estate for specific, demonstrative, and general gifts.

A trust which by its terms may be terminated by the settlor or by another person; opposite of an irrevocable trust.