Liquid Assets - Cash and other assets (like stocks) that can easily be
converted into cash.
"Living Probate" - The court-supervised process of managing the assets
of one who is incapacitated.
Living Trust - A written legal document that creates an entity to which you
transfer ownership of your assets. Contains your instructions for managing
your assets during your lifetime and for their distribution upon your
incapacity or death. Avoids probate at death and court control of assets at
incapacity. Also called a revocable inter vivos Trust. A Trust created during
one’s lifetime.
Living Will - A written document that states you do not wish to be kept alive
by artificial means when the illness or injury is terminal. In California, the
Advance Health Care Directive.
Marital Deduction - A deduction on the Federal Estate Tax Return that lets
the first spouse to die leave an unlimited amount of assets to the surviving
spouse free of estate taxes. However, if no other tax planning is used, and
the surviving spouse’s estate is more than the amount of the federal estate
tax exemption in effect at the time of his/her death, estate taxes will be due
at that time.
Marital Trust - See "A Trust."
Medicaid or Medi-Cal - A federally-funded health care program for the
poor and minor children.
Medicare - A federally-funded health care program, primarily for Americans
over age 65 who are covered by Social Security or Railroad Retirement
benefits.
Minor - One who is under the legal age for an adult, which varies by state
(usually age 18 or 21).
ESTATE PLANNING
Glossary of Terms
