|Estate planning glossary
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Residuary estate -- The remaining part of an
estate after debts, taxes, fees and special bequests
have been paid and other distributions made.
51. Revocable trust -- A trust that can be modified and altered by the grantor at any time during life. The grantor can also terminate the trust during his lifetime, with all property reverting to him. A revocable living trust is a trust into which a grantor places his property with instructions for its distribution and management.
52. Second-to-die insurance -- An insurance policy that insures both spouses during life, and the proceeds of which may be used to help pay the taxes on the estate at the death of the second spouse.
53. Self-proving will -- A will that proves its validity to the probate court in most states by having the signatures of the witnesses and will maker notarized in an affidavit attached to the will.
54. State estate taxes -- Death taxes on an estate, levied by individual states.
55. Taxable estate -- All property and property interests owned at death that are subject to estate taxation.
Tenants in common -- A type of joint ownership
without rights of survivorship. If an owner dies,
his or her portion of ownership is included in the
estate and passes by will or laws of intestacy rather
than automatically passing to the other owner(s),
or tenants. Ownership interests may be unequal.
Testamentary trust -- A trust established within
a will containing provisions that will continue after
the death of the grantor/will maker.
Trust -- An arrangement for holding, investing
and managing property on behalf of one or more beneficiaries.
59. Trustee -- A person or entity named in the trust to manage the assets of a trust and distribute them according to the terms of the trust.
60. Will -- A legal instrument used to direct the disposition of the will maker's property upon death. Also names an executor and a guardian for dependents.