WALTEMATH LAW OFFICE

Legal Lingo

Agent:  The person named in a power of attorney to act on the principal's behalf.  Sometimes called an attorney-in-fact.  It is extinguished at death.

Beneficiary Deed:  A revocable deed designating persons to receive your Colorado real estate while avoiding probate.     

Codicil: An amendment to a will.

Community property:  Assets a married person acquires during the person's marriage while living in a community property state.

Conservatorship:  A court proceeding in which a judge appoints a person or organization (the conservator) to take control of and manage the financial affairs of an incapacitated person.

Estate administration:  Sorting out what happens to a person's estate after the person dies.

Estate tax: A tax on assets owned by a decedent at death. 

Gift tax: A tax on gifts made while the giver is alive.  No tax is due until the giver has used up his or her lifetime gift tax exemption amount.

Grantor:  The person creating and signing a trust.  Sometimes called the settlor or trustor.

Guardianship:  A court proceeding in which a judge appoints a person to deal with the personal and medical affairs of an incapacitated person.

Holographic will: A will where all material provisions are in the testator=s handwriting.

Intestate: A person who dies without a valid will dies as an intestate, and Colorado Law determines who is entitled to the deceased’s assets. 

Life estate deed:  An irrevocable deed transferring the remainder of real estate upon the owner's death.

Living Trust:  An estate planning document used to transfer assets at death while avoiding probate.

Medicaid:  A combined Federal and State program that pays for care services (nursing homes) for people who have few assets and limited income.

Medicare: A federal program that provides health insurance for individuals who have certain disabilities or are 65 or older.

Personal Representative:  The person a judge appoints to handle the probate estate, (pay debts and distribute assets). The term Executor is used in other states.

Pour-over will: A simplified will that directs that any probate estate assets transfer at death (pour over) to trust ownership.  Used with a living trust.

Power of attorney for financial matters: A legal document in which you name one or more agents to manage financial and property affairs for you.

Power of attorney for medical care: A legal document in which you name one or more agents to be your medical advocate.

Principal:  The person who signs a power of attorney.

Probate:  A court proceeding to pass the probate estate of a deceased person to his or her heirs.

Probate avoider: An arrangement (beneficiary naming, joint tenancy, pay-on-death account, revocable trust, etc.) used by a person during lifetime that removes an asset from his or her probate estate.

Separate property: Typically, assets a married person inherits or receives as a gift, or that were owned by the married person before the marriage. 

SSD: Social Security Disability, a disability program for those 65 years or younger.

SSI:  Supplemental Security Income, an income assistance program for people who are 65 or older, blind or disabled, with low assets and low income.

Testator/Testatrix:  The person who creates and signs a will.  Testator is masculine, testatrix is feminine.

Trustee: The person named in a trust to be in charge of trust assets.

Will: An estate planning document used to name the personal representative (executor) and who will receive the probate estate