Estate planning glossary

A/B Trust

A trust structure that splits into two shares at the first spouse's death to maximize estate tax savings for married couples.

ABLE Account

A tax-advantaged savings account that lets people with disabilities save without losing means-tested benefits like SSI or ALTCS.

ALTCS (Arizona Long Term Care System)

Arizona's Medicaid program for long-term care, which requires spending down assets and may lead to estate recovery after death.

Abatement

The reduction of gifts in a will when the estate lacks enough assets to pay all bequests in full.

Ademption

The failure of a specific gift in a will because the property was sold, given away, or destroyed before death.

Advancement

A lifetime gift that counts against an heir's intestate inheritance share, but only when documented in writing under Arizona law.

Ancillary Probate

A second probate proceeding in another state, triggered when you own property outside your home state.

Annual Gift Tax Exclusion

The amount you can give to each person annually without owing gift tax or filing a return - $19,000 per recipient in 2026.

Antilapse

A legal rule that redirects a will gift to the deceased beneficiary's descendants instead of letting it fail.

Asset Protection Trust

An irrevocable trust designed to shield assets from future creditors, lawsuits, or divorce claims while still benefiting the original owner or family.

Attestation

The formal act of witnesses signing a will to confirm they watched the testator sign it and believed the testator was competent.

B

Beneficiary Deed

A deed that transfers Arizona real estate to a named beneficiary upon death, bypassing probate while keeping the owner in full control during their lifetime.

Beneficiary Designation

A form naming who inherits a specific account at death - these override your will and trust, so coordination is critical.

Bequest

A gift of personal property or money left to a named person or organization through a will.

Buy-Sell Agreement

A contract between business co-owners that controls how an ownership interest is transferred or bought out on death, disability, retirement, divorce, or other triggering events.

Bypass Trust

A subtrust created at the first spouse's death that holds assets up to the federal estate tax exemption to keep them out of the surviving spouse's taxable estate.

C

Certification of Trust

A condensed document proving a trust exists and the trustee has authority to act, without disclosing beneficiaries or distribution terms.

Charitable Remainder Trust (CRT)

An irrevocable trust that pays income to you for life, then passes the remainder to charity, with significant tax benefits.

Class Gift

A bequest in a will or trust made to a group defined by relationship, such as "my children" or "my descendants."

Codicil

A short legal document that amends a will without replacing it, executed with the same formalities as the original will.

Comfort Care

Medical treatment aimed at enhancing quality of life without artificially prolonging it.

Community Property

A legal framework in Arizona where assets acquired during marriage are owned equally by both spouses.

Community Property with Right of Survivorship

A property title for married couples that passes automatically to the surviving spouse at death, with community property tax benefits.

Conservatorship

A court-appointed arrangement to manage the finances of someone who is incapacitated - avoidable with proper estate planning.

Constructive Notice

A legal rule where recording a document with the county puts all parties on notice of its contents, whether they read it or not.

Crummey Power

A short-term withdrawal right given to a trust beneficiary so that gifts to an irrevocable trust qualify for the annual gift tax exclusion.

Custodial Trust

A simplified trust under Arizona's Uniform Custodial Trust Act where a custodial trustee holds property for a beneficiary's benefit.

Cy Pres

A court doctrine that redirects charitable trust assets to a similar purpose when the original goal can no longer be achieved.

D

Decedent

The legal term for the person who has died, used throughout probate, trust administration, and tax filings.

Deed of Trust

A three-party security instrument that allows a trustee to sell property at auction if the borrower defaults, without requiring court involvement.

Deficiency Judgment

A court order for a borrower to pay the remaining loan balance after a foreclosure sale, limited by Arizona's anti-deficiency protections for residential property.

Devise

A gift of property (real or personal) made through a will under modern Arizona probate law.

Devisee

A person named in a will to receive a gift of property (called a devise).

Digital Asset

An electronic record in which a person has a right or interest, such as email, social media, cryptocurrency, or cloud-stored files.

Disclaimer (Inheritance)

A formal, written refusal to accept an inheritance, causing the property to pass to the next beneficiary in line.

Due-on-Sale Clause

A loan provision allowing the lender to demand full repayment when property ownership changes, restricted by federal and Arizona law for estate planning transfers.

Durable Power of Attorney

A power of attorney that stays in effect even after you become incapacitated, unlike a standard power of attorney.

Dynasty Trust

A long-term irrevocable trust designed to hold wealth for many generations while minimizing estate, gift, and generation-skipping transfer taxes.

E

Elective Share

A statutory right that lets a surviving spouse claim a minimum portion of the deceased spouse's estate even if the will leaves them less.

Electronic Will

A will created, signed, and stored electronically that Arizona recognizes as legally valid when specific statutory requirements are met.

Encumbrance

A claim, lien, or interest against property that can affect its use or transfer, such as a mortgage or judgment lien.

Escheat

The legal transfer of a deceased person's estate to the state when no qualified heir can be found under Arizona's intestate succession rules.

Estate

Everything a person owns at death, including real estate, accounts, personal property, and debts owed.

Executor

The traditional name for the person named in a will to settle an estate; Arizona calls this role 'personal representative.'

Exempt Property

Up to $7,000 in personal property (furniture, vehicles, appliances) that a surviving spouse or children can claim from an estate, protected from creditors.

F

Family Allowance

A priority cash payment from an Arizona estate to the surviving spouse and dependent children during probate.

Family Limited Partnership (FLP)

A family-owned limited partnership used to consolidate family assets, retain control with the senior generation, and transfer wealth to descendants at discounted values.

Federal Estate Tax Exemption

The total estate value exempt from federal estate tax. For 2026 it is $15 million per person, a level made permanent under the One Big Beautiful Bill Act.

Fee Simple

The most complete form of property ownership, with full rights to use, sell, or transfer the property without conditions.

Fiduciary Duty

A legal obligation to act in another person's best interest, required of trustees, personal representatives, and financial advisors.

Financial Power of Attorney

A document that gives a trusted person authority to handle your financial matters if you cannot do so yourself.

Formal Testacy Proceeding

A court hearing to formally determine whether a will is valid and should be admitted to probate.

Future Interest

A legally recognized right to own or possess property at a future date, which can be sold, inherited, or transferred even before possession begins.

G

Generation-Skipping Transfer Tax

A federal tax on transfers that skip a generation, such as gifts from grandparents directly to grandchildren above the lifetime exemption.

Governing Instrument

A legal document that controls how property passes, including wills, trusts, beneficiary designations, and joint tenancy agreements.

Grantor (Settlor)

The person who creates a trust, also known as the settlor or trustor.

Grantor Retained Annuity Trust

An irrevocable trust that pays the grantor a fixed annuity for a term of years, then passes any remaining growth to beneficiaries with little or no gift tax.

Guardian Ad Litem

A court-appointed representative who protects the interests of a minor, incapacitated person, or unborn child in a specific legal proceeding.

Guardianship

A court-appointed arrangement for making personal and healthcare decisions for an incapacitated person or minor child.

H

HEMS Standard

An IRS-approved limit on trustee distributions for a beneficiary's health, education, maintenance, or support, used to keep trust assets out of the beneficiary's taxable estate.

HIPAA Authorization

A form that gives family members or agents permission to access your medical records under federal privacy law.

Healthcare Directive

A legal document that communicates your medical treatment preferences if you become unable to speak for yourself.

Heir

A person legally entitled to inherit from someone who died without a will under Arizona's intestacy statutes.

Holographic Will

A handwritten will that Arizona recognizes as valid without witnesses, but that carries significant risks.

Homestead Allowance

A guaranteed $18,000 payment from an Arizona estate to the surviving spouse or minor children, protected from creditor claims.

Homestead Exemption

An Arizona law that protects a homeowner's equity in their primary residence from most creditor claims and forced sales during their lifetime.

I

In-Kind Support and Maintenance

Free or below-market food or shelter that the SSA counts as income, reducing a beneficiary's SSI check.

Incorporation by Reference

A legal method that lets your will include and give effect to a separate written document by specifically referring to it.

Inheritance Tax

A state-level tax paid by the person receiving an inheritance; Arizona does not impose an inheritance tax.

Inter Vivos Trust

A trust created during the grantor's lifetime, as opposed to a testamentary trust created at death by a will.

Intestate Succession

Arizona's default rules for distributing your assets when you die without a will or trust.

Insurance

Irrevocable Life Insurance Trust (ILIT)

A trust that owns your life insurance policy to keep the death benefit out of your taxable estate.

Irrevocable Trust

A trust that cannot be easily changed once created, offering stronger asset protection and tax benefits than a revocable trust.

Issue (Legal Term)

All lineal descendants of a person, including children, grandchildren, and further generations, used in wills and trusts.

J

Joinder

The legal requirement that both spouses sign certain community property transactions, especially real estate deals.

Joint Tenancy

A property ownership form where the surviving owner automatically inherits, but that does not fully avoid probate.

L

Letters Testamentary

A court order that gives the personal representative legal authority to manage a deceased person's estate.

Life Estate

A property interest that lasts for the holder's lifetime, then passes automatically to a named remainder beneficiary.

Lifetime Gift Exemption

The total amount a person can give away during life or at death without federal gift or estate tax, unified with the federal estate tax exemption.

Living Will

A written advance directive that states your wishes about life-sustaining treatment if you have a terminal condition or are permanently unconscious.

Insurance

Long-Term Care Insurance

Insurance that pays for extended care services not covered by Medicare, including assisted living, in-home care, and nursing home stays.

M

Marital Deduction

An unlimited federal estate and gift tax deduction for property left to a U.S. citizen spouse, postponing tax until the second spouse's death.

Marital Trust

An umbrella term for trusts that hold assets for a surviving spouse and qualify for the federal marital deduction; the QTIP is the most common variation.

Medicaid Estate Recovery

A federal-state program that lets Medicaid recover the cost of long-term care benefits from a recipient's estate after death.

Medical Power of Attorney

A document naming someone to make healthcare decisions for you when you cannot speak for yourself.

Mental Health Care Power of Attorney

A legal document naming someone to make mental health treatment decisions on your behalf if you are found incapable.

Mortgage

A legal document that pledges real property as collateral for a loan or other obligation.

N

No-Contest Clause

A trust or will provision where a beneficiary who unsuccessfully contests the document loses their entire inheritance.

Nonclaim Statute

A law that sets a strict deadline for creditors to file claims against a deceased person's estate, after which the claims are permanently barred.

Nonprobate Transfer

The passage of assets at death outside probate through beneficiary designations, trusts, POD accounts, or similar arrangements.

O

Omitted Spouse or Child

A spouse or child left out of a will because it was made before the marriage, birth, or adoption, automatically entitled to a share under Arizona law.

P

PLAN of Arizona

Arizona's primary nonprofit pooled special needs trust, offering professional trustee and care-coordination services for disability planning.

POLST (Portable Order for Life-Sustaining Treatment)

A physician-signed medical order specifying life-sustaining treatment preferences, immediately actionable by emergency providers.

Payable-on-Death (POD) Designation

A bank account feature that names a beneficiary to receive the funds upon death, bypassing probate.

Per Capita

A method of dividing an inheritance equally among living descendants of the same generation, instead of by family branch.

Per Stirpes

A distribution method where each family branch gets an equal share - if a beneficiary dies, their children inherit their portion.

Personal Representative

The court-appointed person responsible for managing and settling a deceased person's estate through probate in Arizona.

Pet Trust

A trust created to provide care and funding for a pet after the owner's death or incapacity, enforceable under Arizona law.

Pooled Trust

A non-profit-managed special needs trust that pools assets from many beneficiaries into separate sub-accounts.

Portability (Estate Tax)

A rule that lets a surviving spouse inherit their deceased spouse's unused estate tax exemption, effectively doubling the exempt amount.

Pour-Over Will

A will that catches any assets left outside your living trust at death and transfers them into the trust for distribution.

Power of Appointment

A legal authority in a will or trust that lets someone decide how certain property will be distributed to others.

Premarital Agreement

A written contract between future spouses that governs property rights and financial obligations during and after marriage.

Presumed Maximum Value

The SSA's cap on how much in-kind food or shelter help can reduce an SSI check, set at one third of the federal benefit rate plus $20.

Pretermitted Heir

A child or other heir unintentionally left out of a will, often because they were born or adopted after the will was signed.

Probate

A court-supervised process for settling a deceased person's estate, validating their will, and distributing assets in Arizona.

Protected Person

Someone whose financial affairs are managed by a court-appointed conservator due to an inability to manage property independently.

Prudent Investor Rule

Arizona's default standard requiring trustees to invest and manage trust assets with reasonable care, skill, and caution.

Public Fiduciary

A county-appointed official who manages the affairs of people with no other available guardian, conservator, or estate administrator.

Q

QTIP Trust

A marital trust that gives the surviving spouse income for life and lets the first spouse to die control who eventually receives the principal.

Qualified Custodian

An independent party who securely stores an electronic will and maintains chain-of-custody records under Arizona law.

Qualified Disability Expense

Any disability-related cost paid from an ABLE account that maintains or improves the beneficiary's health, independence, or quality of life.

Qualified Personal Residence Trust

An irrevocable trust that transfers a home to family members at a discounted gift tax value while letting the grantor keep living there for a set term.

Quitclaim Deed

A deed that transfers whatever interest the grantor has in a property without warranting that the title is clear.

R

Remainder Interest

A future property interest that becomes full ownership after a life estate or fixed-term estate ends.

Residuary Estate

Whatever is left of an estate after specific gifts, debts, taxes, and administration costs are paid; distributed under the residuary clause of a will or trust.

Revocable Living Trust

A flexible legal arrangement that holds your assets, avoids probate, and lets you maintain full control during your lifetime.

Rule Against Perpetuities

A legal rule that limits how long property can be held in a trust before it must vest in someone. Arizona allows up to 500 years.

S

Self-Proving Will

A will with a notarized affidavit that lets it be admitted to probate without witnesses needing to appear in court.

Separate Property

Assets that belong to one spouse individually, including property owned before marriage, gifts, and inheritances.

Separation Agreement

A written contract between divorcing spouses covering property division, spousal maintenance, and child support that becomes enforceable once approved by the court.

Settlor

Another word for the person who creates and funds a trust; same role as grantor or trustor.

Slayer Rule

A legal rule that prevents someone who intentionally kills another person from profiting through that person's estate or inheritance.

Small Estate Affidavit

A simplified Arizona process for transferring small estates without formal probate when assets fall below legal thresholds.

Special Administrator

A temporary court-appointed estate manager who handles urgent matters before a regular personal representative takes over.

Special Needs Trust

A trust that holds assets for a person with a disability without disqualifying them from SSI, ALTCS, or other means-tested benefits.

Spendthrift Clause

A trust provision that shields a beneficiary's inheritance from their creditors, lawsuits, and poor spending decisions.

Spousal Maintenance

Court-ordered financial support paid by one spouse to the other during or after a divorce, based on need and earning ability.

Springing Power of Attorney

A power of attorney that takes effect only when a triggering event happens, usually the principal's incapacity confirmed by a doctor.

Step-Up in Basis

An income tax rule that resets an inherited asset's cost basis to its fair market value at the original owner's death, reducing capital gains tax.

Successor Trustee

The person who takes over management of your trust when you can no longer serve as trustee.

Supervised Administration

A probate process where the court actively oversees the personal representative's management and distribution of estate assets.

Supported Decision-Making Agreement

A formal agreement allowing an adult with a disability to get help making decisions without giving up legal authority.

Surety Bond

A financial guarantee that protects estate beneficiaries if a personal representative or trustee mismanages assets.

Surrogate Decision Maker

A person authorized by Arizona law to make medical decisions for an incapacitated patient who has no health care power of attorney.

T

Tangible Personal Property Memorandum

A separate, easily updated list referenced by a will or trust that distributes specific items of tangible personal property to chosen recipients.

Tenancy in Common

A form of co-ownership where each owner's share passes through their estate at death, rather than transferring automatically to the other owners.

Testamentary Capacity

The legal standard of mental competence required to make a valid will in Arizona.

Testamentary Trust

A trust created inside a will that only takes effect after death and probate, offering less protection than a living trust.

Testator

The person who makes a will; the female form 'testatrix' is no longer commonly used.

Trust Accounting

A formal report a trustee provides to beneficiaries showing trust assets, income, expenses, and distributions for a defined period.

Trust Amendment

A legal change to specific parts of your trust without replacing the entire document.

Trust Funding

The process of transferring ownership of your assets into your living trust so the trust can actually control them.

Trust Protector

A person named in a trust document with special powers to modify the trust, remove trustees, or adjust beneficiary interests, separate from the trustee role.

Trust Restatement

A complete rewrite of your trust that replaces all prior versions and amendments while keeping the original trust identity.

Trustee

The person or institution responsible for managing a trust and carrying out its instructions.

Trustor

The person who creates a trust and transfers assets into it, also known as the grantor or settlor.

U

Undue Influence

Pressure exerted by a trusted person that overrides someone's free will in estate planning decisions, creating grounds to challenge a will or trust.

W

Ward

A person placed under the protection and authority of a court-appointed guardian.