Glossary of Estate
Planning Terms

An estate planning strategy for married couples that divides assets into two trusts upon the first spouse’s death to utilize
the federal estate tax exemption. While less common post-portability, it is still used for asset protection, remarriage
protection, and GST planning. (Federal concept; interacts with Internal Revenue Code)

A court-appointed individual responsible for administering an estate when no valid will exists or no personal
representative is named. Governed by Florida probate law. (Fla. Stat. §733)

Includes designation of healthcare surrogate and living will. Florida law governs execution
requirements, including witness rules.

A document that includes a designation of healthcare surrogate and/or living will, allowing medical decisions upon
incapacity. Requires two witnesses in Florida. (Fla. Stat. §765)

An agent authorized under a power of attorney to act on behalf of the principal. Must act in good faith and within the
authority granted. (Fla. Stat. Ch. 709)

A person or entity entitled to receive assets under a will, trust, insurance policy, or account designation.

A trust funded at first death to use the deceased spouse’s estate tax exemption and exclude those assets from the
surviving spouse’s taxable estate.

The legal ability to understand and execute documents. Florida courts evaluate whether the person understood the nature
and effect of the document at signing. (Case law driven)

In Florida, this term is rarely used; instead, guardianship applies. Conservatorship may apply in limited cases involving
non-resident property holders. (Fla. Stat. §747)

Same as a by-pass trust; designed to “shelter” assets from estate taxation at the second death.

 Creditors generally have limited time (often 3 months after notice) to file claims against
an estate, after which claims may be barred.

An irrevocable trust allowing gifts to qualify for the annual gift tax exclusion by granting temporary withdrawal rights.
(Internal Revenue Code Section 2503(b))

A deceased individual whose estate is subject to administration.

A named individual eligible to receive retirement account benefits and whose life expectancy governs distributions under federal law.

A qualified refusal to accept assets, often used in post-mortem tax planning. Must comply with strict timing rules. (Internal Revenue Code Section 2518)

A trust funded when a beneficiary disclaims assets, allowing flexible estate tax planning post-death

A power of attorney that remains effective even after incapacity. Florida requires
specific statutory language and prohibits certain 'springing' powers of attorney created after October 1, 2011.

Under Florida law, a surviving spouse is entitled to an elective share equal to 30% of the elective estate,
regardless of what is stated in the will or trust, unless properly waived.

Under Florida law, a surviving spouse is entitled to an elective share equal to 30% of the elective estate,
regardless of what is stated in the will or trust, unless properly waived.

The process of organizing asset management and transfer during life and at death, including incapacity planning, tax planning, and probate avoidance.

A federal tax on the transfer of wealth at death. Florida does not impose a separate state estate tax.

The right to use and benefit from property, even if legal title is held by another (such as a trustee).

In Florida, certain assets (such as household furnishings and two vehicles) are protected for the surviving
spouse or heirs and are not subject to creditor claims during probate.

The amount exempt from federal estate tax (portable between spouses). (Internal Revenue Code)

An older term referring to the estate tax exclusion amount.

In Florida, the proper term is Personal Representative. (Fla. Stat. §733.302)

A trust established to benefit family members, often structured as revocable during life.

Florida law allows a surviving spouse and certain heirs to receive up to $18,000 from the estate for maintenance during administration.

A legal duty requiring loyalty, prudence, and acting in the best interest of beneficiaries. Applies to trustees and personal
representatives. (Fla. Stat. §736.0801)

Partial ownership of an asset, often creating complexity in estate administration and valuation.

The process of transferring assets into a trust. In Florida, failure to fund results in probate exposure.

A court-supervised process used when an individual is incapacitated. Florida courts require a formal incapacity determination and appointment of a guardian.

A federal tax on transfers to beneficiaries two or more generations below. (Internal Revenue Code Chapter 13)

A federal tax on lifetime transfers exceeding annual exclusions. (IRC §2501)

An irrevocable trust used to remove gifted assets from the taxable estate.

The individual who creates and funds a trust.

The total value of all assets owned or controlled at death. (IRC §2031)

A court-supervised process for managing the affairs of an incapacitated person. Requires judicial determination of
incapacity. (Fla. Stat. Ch. 744)

A person entitled to inherit under Florida intestacy law. (Fla. Stat. §732)

A primary residence protected under the Florida Constitution that provides significant creditor
protection and restrictions on devise. If survived by a spouse or minor child, the homestead cannot be freely devised and
may pass as a life estate or tenant-in-common interest depending on elections.

Florida does not impose an inheritance tax.

An irrevocable trust designed to own life insurance and exclude proceeds from the taxable estate

Dying without a valid will; assets pass according to Florida statutes. (Fla. Stat. §732.101)

Florida statutes determine asset distribution if a person dies without a will. The surviving
spouse may receive the entire estate or a share depending on whether there are descendants from outside the marriage.

A tax-advantaged retirement account governed by federal law.

A trust generally not subject to modification, offering asset protection and estate tax benefits.

Ownership shared by multiple parties, which may include survivorship rights depending on structure.

Ownership with rights of survivorship; in Florida, must be clearly expressed.

A Florida-recognized deed allowing the property owner to retain full control
during life, including the right to sell or mortgage, while automatically transferring the property at death without probate

Formal ownership recognized by law.

Specifies end-of-life medical wishes. (Fla. Stat. §765.303)

Allows unlimited transfers to a U.S. citizen spouse free of estate/gift tax. (IRC §2056)

Transfers automatically to a named beneficiary outside probate.

Florida’s term for executor; must meet statutory qualifications. (Fla. Stat. §733.302)

A will that directs remaining assets into a revocable trust at death.

Grants authority to act on behalf of another; Florida requires specific formalities and does not allow new “springing”
POAs. (Fla. Stat. §709.2108)

A gift that provides immediate access, qualifying for annual exclusion.

A court-supervised process administered in the circuit court. Florida offers both formal administration
and summary administration (available for smaller estates or when the decedent has been deceased for more than two
years).

A common estate planning risk leading to intestacy, guardianship, and unnecessary probate complications.

Allows marital deduction when the surviving spouse is not a U.S. citizen. (IRC §2056A)

Transfers a home at reduced gift tax value while retaining use for a term. (IRC §2702)

Provides income to a surviving spouse while preserving principal for other beneficiaries. (IRC §2056(b)(7))

Include IRAs and 401(k)s; subject to required minimum distribution rules.

Commonly used in Florida to avoid probate, which can be time-consuming and public. Proper
funding is essential to ensure assets bypass the Florida probate process.

A tax-advantaged retirement account with tax-free qualified withdrawals.

Designed to preserve eligibility for government benefits. (42 U.S.C. §1396p)

Allows a surviving spouse to disclaim assets into a trust for tax planning flexibility.

Includes elective share, homestead rights, exempt property, and family allowance. These rights
override certain estate planning documents unless waived in a valid prenuptial or postnuptial agreement.

The person who steps in to manage a trust upon incapacity or death of the original trustee.

Physical personal items such as jewelry, furniture, and collectibles

A special form of joint ownership available only to married couples that includes rights of
survivorship and strong creditor protection against claims of individual spouses.

Co-ownership where each owner’s share passes to heirs rather than automatically to co-owners.

A trust created under a will that becomes effective upon death.

A person who creates a will.

Includes estate, gift, and GST taxes under federal law.

A fiduciary arrangement where assets are managed for beneficiaries.

The fiduciary responsible for administering the trust. (Fla. Stat. §736)

Trustees must comply with the Florida Trust Code, including duties of loyalty, impartiality, prudent
administration, and keeping beneficiaries reasonably informed.

Assets held within a trust.

A legal document directing asset distribution at death; must meet Florida execution requirements (two witnesses). (Fla.
Stat. §732.502)