Glossary

 Last Will and Testament - Also called a "will", a will is a document that must go through a legal process in a probate court to pass on property after your passing.

Trust - An alternative vehicle for estate planning, most trusts do not have to go through a court proceeding to become effective. There are many different types of trusts, which do different things.

Revocable Trust - This type of trust is set up during your lifetime to hold property, and can be changed as many times as you want during your lifetime. This allows you to set up a plan that can evolve as your family dynamic changes. A revocable trust can even be completely dissolved by you without going through a lengthy court procedure.

Grantor - The Grantor is the person who establishes a trust. They control determining who the beneficiaries of the trust are, who the trustee is, what goes into the trust, when it comes out, and more.

Trustee - A Trustee is the person who manages the property in a trust on behalf of the beneficiaries. They would be authorized to make distributions, sell property, or do anything else the grantor allows them to do in the trust document. In a revocable living trust, the Trustee and the Grantor can be the same person--you!

Beneficiary - A beneficiary is the person who enjoys the "benefits" of what is in a trust. They could be receiving a lump sum, having their needs paid for, be allowed to live in the property, and so on. A beneficiary receives things from the trust according to the instructions left by the grantor. In a revocable living trust, a grantor can also be a beneficiary during their lifetime.

Probate - Probate is the legal process which distributes property after someone's death, typically lasting a year in the State of Tennessee. Probate occurs even if you have a will. Some plans involving trusts can reduce or eliminate the need for your family to go through probate.

Testator - The Testator (Testatrix, if female), is the person who signs a will. A Testator's signature must be established by two independent witnesses at the time of signing to be effective.

Executor - The Executor (or Executrix, if female) is the person who manages the estate during the probate process. They are named in the will.

Personal Representative - A personal representative is the person who manages the estate during probate if there is no will. Because there is no document nominating them, they are selected by the court and may be a relative or a local attorney.

Per Stirpes - This means that any property that passes on to the next generation will be divided into equal shares based upon the number of children in that generation. It also means if any child in a generation is deceased, their share will automatically be split evenly between the deceased child's descendants.

En Terrorum/Contest Clause - This means that if anyone tries to file a legal challenge to your estate plan, they will no longer receive their inheritance. This dissuades children from trying to challenge your plan in an attempt to substitute their own judgement for yours.

Living Will - This has nothing to do with passing property to anyone at your death. A living will is a document which instructs your doctor on how you would like life support to be managed, in the event that you become terminally and irreversibly ill.

Power of Attorney - Powers of Attorney, or PoA, is a document that allows someone to make decisions on your behalf. These documents can be for financial decisions, health care, or for limited purposes like signing a single contract. Many prefer PoAs for incapacity planning, as they let a trusted individual step into their shoes should they be unable to make decisions for themselves. Powers of Attorney are only effective during a person's lifetime.