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Estate Protection Plan Glossary

Abstract of Trust    A summary of your Living Trust.   The abstract omits details of what is in the trust and who the beneficiaries are. You can use an Abstract of Trust as proof of having established a Trust without revealing confidential information. Financial organizations and other institutions will sometimes request this. Sometimes called a "certification of trust."

Beneficiary The person(s) who will receive the assets in your Trust when you pass.

Conservator If you were to be incapacitated, this person (appointed by a judge) makes financial and/or health care decisions for you. The Estate Protection Plan allows you to nominate individual(s) to be your Conservator. Depending on where you live, a conservator may also be called a guardian, committee or curator.

Durable Power of Attorney: Asset Management   A document that gives another person legal authority to act on your behalf. If you create such a document, you are called the principal, and the person to whom you give this authority is called your attorney-in-fact. The Estate Protection Plan contains a durable power of attorney that allows you to select individual(s) to make financial decisions for you should you become incapacitated.

Durable Power of Attorney: Healthcare    This document, included in your Estate Protection Plan, empowers a person(s) that you choose to make certain medical decisions for you if you are unable to do so. The EPP also allows you to make medical decisions for yourself in advance.

Estate Taxes    Taxes imposed by the Federal Government when your assets pass to your Beneficiaries. The Estate Protection Plan can help reduce the Estate Taxes your beneficiaries will have to pay.

Irrevocable Trust     A Trust that, once created, cannot be revoked or amended by the Settlor except with the consent of all Beneficiaries.

Living Trust    A Trust you can set up during your life. Living Trusts are an excellent way to avoid the cost and hassle of Probate because the property you transfer into the Trust during your life passes directly to your Beneficiaries after you die, without court involvement. The Successor Trustee simply transfers ownership to the Beneficiaries you named in the Trust. Living Trusts are also called "Inter Vivos Trusts” and are a key component of the Estate Protection Plan.

Living Will    The Living Will allows you to state, in advance, your wishes concerning medical treatment and life-extending procedures if you are unable to do so. These are oftentimes called a “Health Care Directive”.

Pour Over Will    See Will

Probate    The process of the court's supervising the distribution of your estate after your death. Even if you have a Will, Probate is necessary unless your assets are held in Trust. In California, the average Probate cost is about 9% of your gross estate. Probate usually lasts for at least 9 months and can exceed 2 years.

Revocable Trust     A Trust that can be altered or canceled by the Trustor/Settlor.

Successor Trustee    After your death, the Successor Trustee will manage your Estate according to your wishes set forth in your Trust. The Successor Trustee can transfer your assets to your Beneficiaries immediately, without having to wait for court direction. It is important to remember that your Successor Trustee can manage and distribute only those assets that are owned by your Trust.

Trust     A legal arrangement where you transfer assets to be managed by a Trustee (which is you wile you are alive).   When you pass away, a Successor Trustee transfers your assets to your Beneficiaries in accordance with your directions.

Trustee     This is the manager of your Estate. You normally serve as the Trustee of your own Trust while living. Once you pass away, the Trust passes to a Successor Trustee who manages your affairs and distributes the assets in your trust according to your wishes.

Trustor/Settlor/Grantor     This is you, as the person who transfers assets to a Trust. This Trust will be managed by a Trustee (which is also you while you are alive). When all the Trustors pass away, the assets in the Trust pass to the Beneficiaries you select.

Will    A document in which you specify what is to be done with your assets when you die and names your executor. A Will does not protect you from Probate delays and costs. The Estate Protection Plan includes a “Pour-Over Will” which allows assets not included in your Trust to still be administered under the terms of your Trust upon your death.