A Complete Dictionary of Estate Planning Terms Explained in Plain English
Estate planning can seem like learning a new language. Attorneys, financial advisors, insurance professionals, and courts often use legal and financial terms that may be unfamiliar to most families.
This glossary is designed to accompany the RetireCoast Estate Planning Academy and serves as a quick reference whenever you encounter a word you don’t understand.
Our goal is simple:
If you can understand the language of estate planning, you’ll make better decisions for yourself and your family.
Unlike many legal dictionaries, these definitions are written in plain English rather than legal jargon.
Click on a term in the Table of Contents below and go directly there.
A
Advance Directive
A legal document that tells healthcare providers your wishes if you cannot communicate. It often includes a Living Will and Healthcare Power of Attorney.
Agent
A person legally authorized to act for someone else under a Power of Attorney.
Asset
Anything you own that has value, including:
- Real estate
- Bank accounts
- Investments
- Vehicles
- Businesses
- Personal property
- Digital assets
Asset Protection
Legal strategies designed to protect property from unnecessary lawsuits, creditors, or future financial risks.
B
Beneficiary
A person or organization that receives money or property after someone dies.
Examples include:
- Children
- Spouse
- Charity
- Trust
Bequest
A gift left to someone through a will.
Bond (Executor Bond)
Insurance that protects beneficiaries if an executor mishandles estate funds.
C
Codicil
A legal amendment that changes part of an existing will without replacing the entire document.
Community Property
Property jointly owned by spouses in certain states.
Conservator
Someone appointed by a court to manage another person’s financial affairs when they become incapacitated.
D
Durable Power of Attorney
A document allowing another person to handle financial matters if you become incapacitated.
Digital Assets
Online property including:
- Social media
- Cryptocurrency
- Digital photos
- Cloud storage
- Domain names
E
Estate
Everything a person owns at death.
Estate Tax
A tax imposed on certain estates that exceed federal or state exemption limits.
Executor
The individual named in a will who carries out its instructions after death.
F
Fiduciary
A person legally required to act in another person’s best interests.
Examples include:
- Trustee
- Executor
- Agent under Power of Attorney
G
Grantor
The person who creates a trust.
Also called:
- Trustor
- Settlor
Guardian
Someone appointed to care for a minor child or incapacitated adult.
H
Healthcare Agent
The individual authorized to make medical decisions under a Healthcare Power of Attorney.
HIPAA Authorization
A document allowing healthcare providers to share medical information with designated individuals.
I
Incapacity
The inability to make informed financial or medical decisions.
Intestate
Dying without a valid will.
Irrevocable Trust
A trust that generally cannot be changed once established and funded.
J
Joint Tenancy
A form of ownership where property automatically transfers to the surviving owner.
L
Living Trust
Another name for a Revocable Living Trust.
Living Will
Instructions describing your medical treatment preferences if you’re unable to communicate.
M
Minor Child
A child who has not reached the legal age of adulthood.
N
Next of Kin
The closest living relatives according to state law.
P
Per Stirpes
A legal term meaning a deceased beneficiary’s share passes to their descendants.
Personal Representative
Another name used in some states instead of Executor.
Pour-Over Will
A will that transfers remaining assets into a Revocable Living Trust after death.
Probate
The legal court process used to distribute property after death.
Probate Estate
Property that must pass through probate court.
R
Revocable Living Trust
A legal arrangement allowing assets to be managed during life and transferred after death while often avoiding probate.
S
Settlor
Another name for the person creating a trust.
Successor Trustee
The individual who takes over management of a trust after the original trustee dies or becomes incapacitated.
T
Testamentary Trust
A trust created by a will rather than during life.
Trust
A legal arrangement where one person manages property for another person’s benefit.
Trustee
The person responsible for managing trust assets according to the trust document.
Trust Funding
The process of transferring ownership of assets into a trust.
Trustor
Another name for the creator of a trust.
W
Will
A legal document directing how property should be distributed after death.
Witness
An individual who observes the signing of legal documents.
Frequently Confused Terms
| Term | Meaning |
|---|---|
| Grantor | Person creating the trust |
| Settlor | Same as Grantor |
| Trustor | Same as Grantor |
| Trustee | Person managing the trust |
| Successor Trustee | Person who takes over later |
| Beneficiary | Person receiving property |
| Executor | Person carrying out a will |
| Agent | Person acting under Power of Attorney |
| Guardian | Person caring for children |
| Conservator | Court-appointed financial manager |
Common Estate Planning Acronyms
| Acronym | Meaning |
|---|---|
| POA | Power of Attorney |
| DPOA | Durable Power of Attorney |
| HCPOA | Healthcare Power of Attorney |
| HIPAA | Health Insurance Portability and Accountability Act |
| IRA | Individual Retirement Account |
| TOD | Transfer on Death |
| POD | Payable on Death |
| LLC | Limited Liability Company |
| GST | Generation-Skipping Transfer Tax |
| QTIP | Qualified Terminable Interest Property Trust |
| CRUT | Charitable Remainder Unitrust |
| CRT | Charitable Remainder Trust |
Related Estate Planning Academy Lessons
Continue building your estate planning knowledge with these Academy lessons:
- EST 101 – Introduction to Estate Planning
- EST 102 – Building Your Estate Planning Portfolio
- EST 103 – Understanding Probate
- EST 104 – Choosing Your Estate Planning Team
- EST 203 – Creating a Pour-Over Will
- EST 204 – Revocable Living Trusts
- EST 205 – Durable Powers of Attorney
- EST 206 – Healthcare Directives
- EST 207 – HIPAA Authorizations
Final Thoughts
Estate planning shouldn’t require a law degree. Every family deserves to understand the documents and legal concepts that protect the people they love. Keep this glossary bookmarked as you progress through the RetireCoast Estate Planning Academy, and refer back to it whenever you encounter an unfamiliar term. The glossary will continue to expand as new Academy lessons and planning topics are added.
