Estate planning glossary

A helpful glossary of terms used when discussing trusts and estate planning.

Term 

Creator 

Credit shelter trust

 

 

Disclaimers

 

 

 

 

Durable power of attorney

Form 706

Form 709

Form 1041

Grantor

 

Inter vivos trust

 

Intestate

 

 

Personal representative

 

Power of attorney

 

 

 

 

 

 

 

 

 

Probate guardianship

 

 

 

 

 

Qualified terminable interest property (Q-TIP Trust)

 

 

 

Real property

 

Settlor

Tenancy-by-the-entirety

 

 

 

Tenancy-in-common

 

 

 

 

Testate

 

Testator

Definitions

See Grantor.

A Trust that uses an individual's available exclusion for federal estate and gift tax purposes.

The refusal or rejection of any rights, interest or property that was offered to a person. Taxpayers have a limited time to disclaim a gift or a bequest/devise without potentially incurring transfer taxes.

See Power of Attorney.

IRS Estate Tax Return.

IRS Gift Tax Return.

IRS Estate and Trust Income Tax Return.

The person who sets up or creates the trust; also called settlor, trustor or creator.

Another name for a living trust (See Living Trust).

Describes one who dies without a will. Typically, state statutes will then dictate the distribution of assets.

Another name for an executor or administrator.

A legal document that gives someone else full legal authority to make decisions on your behalf in your absence (different from the fiduciary duty of a trustee). Ends at disability or death. Some states permit a durable power of attorney that is valid through disability and ends at death. Limited powers of attorney give someone else only limited authority for a very specific purpose.

The court-supervised appointment of a person to oversee the personal matters (guardian of the person) or the financial matters (guardian of the estate) of a person unable to manage their affairs because of incompetency or age.

A marital trust that qualifies for the estate or gift tax marital deduction. Provides for the trust creator's spouse during his/her lifetime, and then distributes as directed by the trust creator.

Land and/or property that is permanently attached to land (such a building or house).

See Grantor.

A form of joint ownership involving two spouses. Upon death of a spouse, ownership transfers to the surviving spouse. Not available in all states.

A form of joint ownership involving two or more people. Upon the death of a tenant-in-common, that person's ownership interest transfers to the designated beneficiaries or heirs, not to the remaining joint owner(s).

Describes one who dies with a will established.

One who creates a will.

Important Information:

Edward Jones Trust Company commences service as trustee only upon formal acceptance of its appointment. Before accepting such appointment, Edward Jones Trust Company must review the documents and the assets of the trust. Such review is performed at the time Edward Jones Trust Company is called on to serve (e.g., death or resignation of prior trustee). Edward Jones Trust Company assumes no fiduciary responsibility for assets added to any trust unless it has received and formally accepted such assets.

Trust and related services are provided by Edward Jones Trust Company, an affiliate of Edward D. Jones & Co., L.P. (Edward Jones), a registered broker-dealer. Edward Jones Trust Company and Edward Jones are subsidiaries of the Jones Financial Companies, L.L.L.P. Edward Jones Trust Company may use Edward Jones or other affiliates to act as a broker-dealer for transactions or for other services. Payments of such services may be charged as an expense to the trust and will not reduce the amount of fees payable to Edward Jones Trust Company.