Net Estate - The value of an estate after all debts have been paid. (Federal
estate taxes are based on the net value of an estate.)
Net Value - The current market value of an asset less any loan or debt.
Payable-on-Death Account - See "Totten Trust."
Per Capita - A way of distributing your estate so that your surviving
descendants will share equally, regardless of their generation.
Per Stirpes - A way of distributing your estate so that your surviving
descendents will receive only what their immediate ancestor would have
received if he/she had been living at your death.
Personal Property - Movable property. Includes furniture, automobiles,
equipment, cash and stocks. Opposite of real property that is permanent
(like land).
Personal Representative - Another name for an Executor or Administrator.
Pour Over Will - A short Will often used with a Living Trust. It states that
any assets left out of your Living Trust will become part of (pour over into)
your Living Trust upon your death.
Power of Attorney - A legal document giving someone legal authority to
sign your name on your behalf in your absence. Ends at incapacity (unless it
is a durable power of attorney) or death.
Probate - The legal process of validating a Will, paying debts, and
distributing assets after death.
Probate Estate - The assets that go through probate after you die. Usually
this includes assets you own in your name and those paid to your estate.
Usually does not include assets owned jointly, payable-on-death accounts,
insurance and other assets with beneficiary designations. Assets in a Trust
also do not go through probate.
Probate Fees - Legal, executor, and appraisal fees and court costs when
an estate goes through probate. Probate fees are paid from assets in the
estate before the assets are fully distributed to the heirs.
ESTATE PLANNING
Glossary of Terms
