Estate Planning Terms & Florida Estate Planning Glossary

A legal document or statement that communicates your healthcare wishes or designates someone to make healthcare decisions for you if you become unable to make or communicate those decisions. Florida advance directives include a Healthcare Surrogate Designation and Living Will.

A person appointed by a Florida probate court to administer an estate when there is no executor serving under a Will. In Florida, an administrator is a type of personal representative.

A person or organization designated to receive an inheritance or other benefit if the primary beneficiary cannot or does not receive it.

A probate proceeding in a state other than the deceased person's primary state of residence, often involving real estate located in another state. Proper trust ownership or other planning may sometimes reduce the need for ancillary probate.

Property and financial interests that a person owns or has a legal interest in, such as real estate, bank accounts, investments, retirement accounts, business interests, vehicles, personal property, and certain insurance or contractual rights.

A written transfer of a person's rights or interests in certain property or contractual rights to another person or entity. An assignment may be used as part of trust funding when appropriate.

The tax value used to determine gain or loss when an asset is sold or otherwise disposed of. Basis can depend on how an asset was acquired and may be adjusted over time.

A person or organization entitled to receive a benefit from a trust, Will, retirement account, life insurance policy, payable-on-death account, or another legal arrangement.

An instruction identifying who should receive an asset at death under an account, insurance policy, or other arrangement. Beneficiary designations should be coordinated with the overall estate plan.

A type of trust that may be used in certain married-couple estate plans to preserve a deceased spouse's available federal estate tax exemption and provide for the surviving spouse and other beneficiaries. It is generally an advanced planning technique and is not necessary for every family.

A document that provides selected information about a trust, such as its existence and the authority of the trustee, without generally providing the complete trust terms to a third party.

A legal document used to amend or supplement an existing Will. Depending on the nature and extent of the changes, preparing a new Will may be preferable to using a codicil.

Two or more persons or institutions appointed to serve together as trustees of the same trust. The trust document generally determines how co-trustees may act and whether they must act jointly.

A marital property system used in certain states. Florida is not a community-property state. Florida couples who own property or move to Florida from a community-property state may need specialized advice about how prior ownership and tax treatment interact with Florida law.

An estate in which an interested person disputes an issue involving the Will, administration of the estate, distribution of assets, or another matter before the probate court.

A person, business, or institution to whom money or another legal obligation is owed.

Another name commonly used for a bypass trust. It may be included in certain estate tax planning arrangements for married couples.

A person appointed to manage property for a minor under a custodial arrangement such as the Florida Uniform Transfers to Minors Act. The rules governing when the minor receives control of the property depend on the applicable law and arrangement.

A legal instrument used to transfer an interest in real property. The type of deed and the circumstances of the transfer can affect the rights and obligations of the parties.

To formally refuse or renounce an interest in property or an inheritance. A qualified disclaimer can have specific legal and tax requirements.

To intentionally exclude a person from receiving property under an estate plan, subject to legal restrictions that may apply to certain family members and types of property.

The transfer of money or property from an estate, trust, or other legal arrangement to a person or organization entitled to receive it.

A legal document that authorizes an agent to act on behalf of the principal during the principal's lifetime. In Florida, a durable Power of Attorney is designed to remain effective despite the principal's later incapacity, subject to Florida law and the terms of the document. The authority granted depends on the powers included in the document.

Learn more about Florida Durable Powers of Attorney.

The property, financial interests, and obligations associated with a person at death. Depending on the context, "estate" can refer broadly to everything a person owns and owes or more specifically to the assets being administered after death.

The process of handling a person's affairs after death, which may include identifying assets, addressing debts and expenses, administering probate assets, handling tax matters when applicable, and distributing property to beneficiaries or heirs.

A tax imposed by the federal government on certain transfers of property at death. Whether an estate tax return is required depends on the size and circumstances of the estate and the law applicable for the year of death. Florida does not currently impose a separate state estate tax.

A person nominated in a Will to serve as the personal representative of the estate. In Florida, the court appoints the personal representative who administers the probate estate.

The amount of wealth that may generally pass without federal estate tax, subject to the applicable federal rules, deductions, prior taxable gifts, and other factors. The amount can change as federal law changes.

A person or institution entrusted with legal duties to act for the benefit of another. Trustees and personal representatives generally have fiduciary responsibilities under Florida law.

The process of transferring or properly coordinating assets with a trust so the trust can function as intended. The appropriate funding method depends on the type of asset and the terms of the trust.

Proper trust funding can be important to probate planning.

A voluntary transfer of property or value from one person to another without receiving equivalent consideration in return.

A federal transfer tax that may apply to certain lifetime gifts. Federal gift-tax rules include exclusions, deductions, and lifetime exemption provisions that can affect whether tax is actually owed.

The person who creates or establishes a trust. Depending on the context, this person may also be called a settlor, trustmaker, or trustor.

The value of property and interests included in a person's estate for federal estate tax purposes before applicable deductions and exclusions are taken into account.

A court-supervised legal arrangement for protecting the person or property of someone who has been determined to lack the ability to manage certain affairs. Florida guardianship law is distinct from estate planning documents such as a Durable Power of Attorney.

A person designated under a Florida Healthcare Surrogate Designation to make healthcare decisions for you when you are unable to make or communicate those decisions yourself, subject to Florida law and the authority provided in the designation.

Learn more about Florida Healthcare Surrogate Designations.

A person who is entitled to inherit property under applicable law, such as Florida's intestacy laws, when a person dies without an effective Will governing the property.

A Will written by hand. Florida does not generally recognize a handwritten Will as valid merely because it is handwritten; Florida's Will-execution requirements must be satisfied.

A qualifying Florida residence protected by important constitutional and statutory rules. Florida homestead law can affect creditor protection, property taxation, and restrictions on how the property may be transferred at death.

Learn more about Florida homestead and asset protection.

A Florida property tax benefit available to qualifying homeowners. The exemption is separate from the broader constitutional protections that may apply to Florida homestead property.

A person's inability to make or communicate certain decisions or manage particular affairs. Estate planning can address potential incapacity through documents such as a Durable Power of Attorney, Healthcare Surrogate Designation, Living Will, and, when appropriate, a revocable trust.

Property or other assets received from a person who has died.

A trust created during the lifetime of the person establishing it. A revocable living trust is an example of an inter vivos trust.

A trust designed to limit or eliminate the settlor's ability to revoke or amend the trust. The exact rights of the settlor and beneficiaries depend on the trust terms and applicable law. Some irrevocable trusts may be modified or terminated in certain circumstances.

Dying without a valid Will governing the property at issue. Florida's intestacy laws determine which relatives inherit probate assets when someone dies intestate.

Ownership of an asset by two or more people. The legal consequences depend on the form of ownership, the asset involved, and the applicable law.

A form of ownership in which a deceased owner's interest may pass automatically to surviving joint owners, subject to the governing ownership documents and applicable law.

Both are forms of ownership that can provide survivorship rights, but they are not interchangeable. Florida recognizes tenancy by the entireties for qualifying married couples and provides specific legal consequences for property held in that form.

A trust created during a person's lifetime. A revocable living trust can provide a framework for managing trust-owned assets during the person's lifetime and for distributing those assets after death. Proper funding is an important part of using a trust for probate planning.

Learn more about Florida revocable living trusts.

A Florida advance directive that documents a person's wishes concerning life-prolonging procedures in the serious medical circumstances addressed by Florida law.

Learn more about Florida Living Wills.

Assets that can generally be converted to cash relatively easily, such as cash and certain publicly traded investments.

A federal estate and gift tax provision that may allow qualifying transfers to a surviving spouse to pass without immediate federal estate tax, subject to applicable requirements and limitations.

A trust structured to benefit a surviving spouse and potentially qualify for favorable federal estate tax treatment. The appropriate structure depends on the family's circumstances and tax-planning goals.

A joint federal and state program that provides healthcare coverage to eligible individuals under applicable federal and state rules. Medicaid eligibility and long-term-care planning can involve complex financial and legal considerations.

A federal health insurance program primarily serving people age 65 and older and certain younger people who qualify based on disability or specific medical conditions.

A person who has not reached the age of majority under applicable law. In Florida, the age of majority is generally 18, although different legal rules can apply in particular circumstances.

The value of an estate after applicable debts, expenses, deductions, and other adjustments are taken into account. The precise meaning can depend on whether the term is being used for probate, accounting, or tax purposes.

An asset that generally passes at death outside the probate estate, such as certain jointly owned assets, properly designated beneficiary accounts, or properly funded trust-owned assets. The exact treatment depends on ownership and the governing documents.

A financial account with a beneficiary designation that generally directs the institution to pay the account to the designated beneficiary after the account owner's death, subject to the account agreement and applicable law.

A method of distributing property among people in the same designated class, generally resulting in equal shares among those who qualify under the governing document.

A method of distributing property by family branch, generally allowing the descendants of a deceased beneficiary to receive the share that beneficiary would have received under the governing document.

The person appointed by a Florida probate court to administer a probate estate. A personal representative may be nominated in a Will, but the court makes the appointment.

Learn more about Florida probate and estate administration.

A Will commonly used with a revocable living trust. It generally directs certain probate assets remaining in the individual's name at death to be distributed to or for the benefit of the trust according to the Will and trust terms. A pour-over Will does not itself eliminate probate.

A legal document that authorizes an agent to act on behalf of a principal within the authority granted by the document. A Durable Power of Attorney is designed to remain effective despite the principal's later incapacity, subject to Florida law and the document's terms.

Learn more about Florida Powers of Attorney.

The court-supervised legal process used to administer assets that are subject to probate after a person's death. Probate may involve validating a Will, appointing a personal representative, identifying assets, addressing creditor claims, and distributing property.

Learn more about Florida probate and estate administration.

The portion of a deceased person's property that is subject to probate administration. Whether an asset is part of the probate estate depends on ownership, beneficiary designations, survivorship rights, trust ownership, and other circumstances.

The expenses associated with administering a probate estate, which may include court costs, attorney fees, personal representative compensation, appraisal expenses, accounting costs, and other administration expenses. The total cost varies significantly depending on the estate and the work required.

A specialized trust that may allow a non-U.S.-citizen surviving spouse to qualify for the federal estate tax marital deduction when specific requirements are satisfied.

A trust that can provide for a surviving spouse while allowing the person creating the trust to control who receives the remaining trust property after the spouse's death. QTIP trusts are commonly associated with federal estate tax planning.

A trust that satisfies federal tax requirements for owning stock in an S corporation. S corporation ownership through a trust requires careful tax and estate planning.

A deed that transfers whatever interest the grantor has in real property, without the same type of title warranties generally associated with a warranty deed. Whether a quitclaim deed is appropriate depends on the circumstances of the transfer.

Land and interests in land, including buildings and other improvements attached to the land.

A deed that has been filed in the appropriate public land records. Recording provides public notice of the recorded instrument and can be important to establishing the public record of ownership.

A trust that the person who created it generally retains the power to amend or revoke while the trust remains revocable and the applicable legal requirements are satisfied. A revocable living trust is commonly used for lifetime management, incapacity planning, and probate planning.

Learn more about Florida revocable living trusts.

A distribution that federal tax law may require from certain retirement accounts after specified triggering events and ages. RMD rules have changed several times, so current IRS rules should be reviewed when making retirement and estate planning decisions.

Property that is treated as belonging separately to one spouse rather than as jointly owned marital property. Whether property is separate can depend on how and when it was acquired, how it was titled, whether it was commingled, and applicable law.

The person who creates a trust and transfers property to it. The term settlor may also be used interchangeably with grantor or trustmaker depending on the context.

A trust designed to provide for a person with a disability while considering the rules governing needs-based public benefits. Because eligibility rules vary by program, specialized legal planning is important.

A trust provision that may restrict a beneficiary's ability to transfer certain trust interests and may provide protection from some creditor claims, subject to the trust terms and applicable law.

A commonly used term describing a basis adjustment that may occur for certain inherited property under federal tax law. The tax treatment depends on the type of asset, how it was owned, and the applicable federal tax rules.

The person or institution named to serve as trustee after the current trustee dies, resigns, becomes unable to serve, or otherwise stops serving, according to the terms of the trust.

Learn more about Florida trust administration.

A form of ownership available to qualifying married couples for certain property. Florida law provides specific legal consequences and protections for property properly held as tenants by the entireties.

A form of ownership in which two or more owners hold separate interests in the same property. Unlike certain survivorship arrangements, a tenant in common's interest generally does not automatically pass to the other owners at death.

A trust created under a Will that takes effect at death. Because the Will must generally be administered through probate, a testamentary trust is not the same as a lifetime revocable trust.

Describes a person who dies with a valid Will governing some or all of the property at issue.

A legal arrangement in which property is held and managed by a trustee for the benefit of one or more beneficiaries or for another legally recognized purpose.

The process of administering a trust according to its terms and applicable law. After a settlor's death, administration may involve identifying trust assets, communicating with beneficiaries, addressing debts and expenses, handling tax matters when applicable, and distributing trust property.

Learn more about Florida trust administration.

A person or institution responsible for managing trust property and carrying out the duties established by the trust and applicable law. Trustees generally have fiduciary duties to act in accordance with the trust's terms and applicable law.

The process of transferring appropriate assets to a trust or otherwise coordinating assets with the trust. Proper funding can be important to achieving the intended probate-planning and asset-management goals of a revocable living trust.

A person given specific powers under certain trust arrangements to oversee or modify aspects of the trust as authorized by the trust document and applicable law. Not every trust has a trust protector.

A law that permits certain property to be transferred to a minor under a custodial arrangement managed by an adult custodian. The rules governing custodial property and the age at which control transfers to the child depend on applicable law.

A traditional term associated with the federal estate and gift tax credit system. Modern federal tax materials generally refer to the applicable exclusion amount and applicable credit amount. Because these rules and amounts can change, current IRS guidance should be consulted when tax planning is involved.

A trust that has not received some or all of the assets intended to be held by it. A revocable living trust generally needs appropriate funding and asset coordination to accomplish its intended planning objectives.

A deed that generally provides warranties from the grantor concerning title to the property. The exact warranties and legal effect depend on the deed and applicable law.

A legal document that provides instructions concerning the disposition of property at death and can nominate a personal representative and, when appropriate, guardians for minor children. Assets passing under a Will generally require probate administration.

Learn more about Florida Last Wills and Testaments.