Administrator:
The person appointed by the court to manage one's estate when he or she dies without a will. Administrators have the same duties as executors.

Appreciated Property:
Property, such as real estate or stock, which has increased in value.

Attorney at Law:
A person who is legally qualified and authorized to represent and act for clients in legal proceedings. This is different from an attorney in fact.

Attorney in Fact:
A person who, acting as agent, is given written authorization by another person to transact business on their behalf out of court. This is different from an attorney at law.

Basis:
The amount paid for an asset. Capital gains tax is paid on capital gains that are measured by the difference between the selling price and the basis. Property that is inherited receives a "step up" in basis so that the basis- to the person inheriting the property- is what the property was worth at the time of inheritance. A person receiving property by a lifetime gift has the same basis as the previous owner.

Beneficiary:
A person who is named to receive benefits, for example in an insurance policy.

Bequest:
To give or leave something, typically personal property or assets, by will to a specific recipient. A charitable bequest is a transfer at death by will to a nonprofit organization for charitable purposes.

Charitable Gift Annuity:
A form of annuity in which a charity is the obligor. The donor transfers money or property to the charity and in turn receives income for a specific period or for life. Some income tax deduction may be available.

Charitable Exemption:
There is no estate or gift tax for property going to a qualified charity.

Charitable Lead Trust:
A special kind of trust in which property is transferred to a trust. Income from the property is paid to a qualified charity for a specified period of years, with any property remaining going to the trust maker or persons designed by the trust maker. There may be income tax, capital gains tax and estate tax advantages to the trust maker.

Charitable Remainder Trust:
A special kind of trust in which property is transferred to a trust. Income from the property is paid to the trust maker or persons designated by the trust maker for a specified period of years or for life, with any property remaining going to a qualified charity. There may be income tax, capital gains tax and estate tax advantages to the trust maker.

Codicil:
A legal instrument made to modify an earlier will.

Durable Power of Attorney:
A written legal document that lets an individual designate another person to act on his or her behalf even in the event the individual becomes disabled or incapacitated.

Durable Power of Attorney for Health Care:
A special kind of durable power of attorney that designates a particular person or persons to make decisions regarding health care for a person who has become unable to make or communicate their own health care decisions.

Estate:
Everything a person owns or has control of at the time of their death. This includes life insurance payable upon the personÕs death.

Estate Tax:
A tax levied on a person's estate upon their death. The federal tax is a very heavy tax and quickly reaches 55 percent and can exceed 60 percent for large estates. Most states also impose an estate tax or inheritance tax.

Executor:
A person designated to manage an estate including gathering assets, paying expenses and taxes and making distributions to beneficiaries. The executor is often called a personal representative. If there is no will, the executor may be called an administrator. There are variations to terms depending on masculine or feminine form.

Fiduciary:
A person in a position of trust and responsibility, such as the executor of a will, trustee of a trust or agent under power of attorney.

Generation-Skipping Transfer Tax (GSTT):
A transfer tax generally assessed on gifts in excess of $1 million to grandchildren, great-grandchildren or others at least two generations below the individual making the gift. It is a flat tax computed with reference to the minimum federal estate tax applicable at the time of the transfer, which is currently 55 percent. There may also be a state generation-skipping transfer tax.

Gift Tax:
A tax imposed by the federal government, and some states, on a person giving money or property to a non-charitable person or organization. The giver owes the tax.

Gross Estate:
The total property or assets held by an individual as defined for federal estate tax purposes.

Guardian:
An individual legally appointed to manage the rights and/or property of a person incapable of taking care of his or her own affairs.

Intestate:
The term applied when an individual dies without a will.

Irrevocable Life Insurance Trust (ILIT):
A type of irrevocable trust designed to hold life insurance so it will not be taxed in the insured's estate. Intestacy: The state of dying without a will. State law governs who gets the property owned by the deceased person.

Joint Tenancy:
Two or more people owning property jointly in a form that allows the property to automatically become titled in the names of the remaining owners upon the death of any owner.

Life Insurance Trust:
A trust that has the proceeds of an individual's life insurance policy as its principal.

Living Trust:
A trust created during your lifetime. It is revocable, which means it can be amended or terminated anytime while you are competent. It is legally referred to as a revocable inter vivos trust. The trust becomes irrevocable upon your death. A living trust is used primarily to avoid probate and manage property. It does not save taxes.

Living Will:
Frequently confused with a will or a living trust. A living will is a document giving instructions about health care. It is also called a physician's directive or a health care directive and is commonly said to give instructions for ending nutrition and hydration, and extraordinary medical measures.

Marital Exemption:
No federal estate or gift tax is owed for property passed to a spouse who is an American citizen.

Payable on Death or Transfer on Death:
A form of ownership in which the owner has control of the account or property during his or her lifetime. When the owner dies, the property automatically goes to the designated person.

Pour-Over Will:
A will that transfers property owned by you at your death to a trust. There must be a previously existing trust to receive these assets.

Power of Attorney:
A legal document allowing one person, the agent, to act on behalf of another, the principal. It may be general and unlimited, or special and limited to specific purposes. The death or incompetence of the principal revokes a power of attorney unless it is a durable power. A durable power is not affected by the incompetence of the principal.

Probate:
A legal proceeding to determine the validity of a will. If the deceased person had no will, the probate court will determine the disposition of the estate in accordance with Ohio laws.

Trust:
A contract between a trust maker and a trustee, establishing a separate legal entity for the benefit of beneficiaries. The separate entity is now the owner of the property in the trust. Since the entity owning the property does not die, there is no need for probate on the death of the trust maker to pass on the property. Trusts can be irrevocable- cannot be changed- or revocable, also called a living trust.

Trustee:
The person designated to safeguard the assets and properly distribute them, according to the terms of the trust.

Will:
A legally executed document that directs how and to whom a person's property is to be distributed after death.