Understanding Basic Probate Terms
(Part 2: G-N)
This month, we’re continuing our review of an important aspect of probate. If you find yourself in the position of handling the estate of a loved one, understanding key terms and processes can help reduce stress and confusion. Knowledge supports you in determining the best decisions and course of action for your family and you.
Listed below are key probate terms you should know in part 2 of our Basic Probate Terms review.
Grantor: A person responsible for transferring assets into a trust on behalf of another person.
Heir: The closest kin-relationship inheritor of property, either through a will or for a deceased without a will.
Inheritance Tax: The State of California doesn’t have an inheritance tax. Should an estate owe a Federal estate tax, the State can take a portion of funds due and then apply it as a credit towards the Federal tax owed.
Inter Vivos Trust: A Trust to provide benefits to a person or organization during the lifetime of another- this is as opposed to the benefits of a trust being paid after the establisher of the trust has passed away.
Intestate: To be without a will.
Inventory & Appraisal: A formal listing of all assets and their value of a decedent’s property.
Irrevocable Living Trust: An established trust, which once set, cannot be changed, by either the person who created or any other party.
Issue: A general term to denote the children of a decedent, and sub-sequential children born in successive generations. This is typically applied to both naturally-born and adoptive children.
Joint Tenancy with Right of Survivorship: For any property which is co-owned on the property title or a deed, when one passes away, the surviving party takes sole ownership of the property, regardless of the Will of a deceased may state.
Judgement: The legal term for any decision handed down by the court.
Kindred: Anyone noted as a relative of a deceased person.
Lapse: This is what happens when a gifted item from a will is unable to transfer to the named beneficiary due to their death preceding that of the decedent whose estate is in probate review. Per CA Statute, if there’s an heir for the person gifted property from a will, the gift will transfer to the heir and not be lapsed.
Legacy: A lesser-used term referring to the transfer of personal property through will; this is synonymous with Bequest and Devise (see Part 1 of this series)
Legatee: Another term for Beneficiary.
Letters: These consist of the official court documents which state whom is assigned as the estate executor.
Life Estate: This applies to an owner of property designated to a person for their lifetime only. Once they pass away property ownership is passed to someone else.
Living Trust: A trust set up while a person is alive, which then also remains under their personal control until they pass away.
Living Will: A document outlining a persons’ wishes in terms of medical treatment and life support actions. These are listed with specific circumstances noted that indicate imminent death will occur unless said action is taken.
Marital Deduction: A tax deduction that allowed for the transfer of property from one spouse to another, typically without having to pay any gift or estate taxes.
Net Estate: The total value of an estate at the time of a decedent’s death, minus any debts owed.
Next of Kin: The closest living relative to a decedent.
Nuncupative: An oral Will; this is not recognized in the State of California
Working with a caring and experienced Realtor who can help throughout your time dealing with probate, makes this challenging time less stressful. Please contact me (or call me at 408-472-0817) .
Stephen Theard