Understanding estate planning terminology can help you make informed decisions about your legal documents and your family’s future. Below is a guide to common estate planning terms and their meanings, written in plan English to help demystify the process.
Estate:
Estate is a word we use too frequently in this practice area. When someone refers to an Estate they actually could be referencing several different things:
Probate Estate:
These are the assets someone owned individually in their own name that upon their death are now subject to the jurisdiction of the probate court.
Trust Estate:
These are the assets owned by a particular trust and controlled by the terms of that trust.
Taxable Estate:
These are the assets someone had enough of an interest in to be included in the group of assets subject to the Federal or Massachusetts Estate Tax.
Estate Planning:
Twenty, thirty years ago this would have been akin to preparing a Will for most people. However, so many assets are not controlled by Wills these days (namely anything that carries a beneficiary designation like a life insurance policy, or a retirement account to name just two) that instead of being hired to “write someone’s Will,” we are hired to plan out their estate.
Country Estate:
Many people delay estate planning until they have amassed significant assets thinking they don’t need to plan until they have an “Estate”. We customize our planning for each client ranging from advanced estate tax planning for individuals with millions of dollars in assets, to just the core incapacity decision-making documents (e.g. powers of attorney, health care proxies, etc.) for someone who has just turned 18, and everywhere in between.
Personal Representative/Executor:
This is the person named in your Last Will and Testament to administer your estate after your death. In some states, the term executor is used; in others, including Massachusetts, personal representative is the official term. Massachusetts introduced the term Personal Representative back in 2012 so many documents still reference the term Executor but they are interchangeable. The Personal Representative is responsible for collecting assets, paying debts and taxes, and distributing your property in accordance with your wishes.
Trustee:
A person or institution responsible for managing trust property in accordance with the terms of the trust document. The role and responsibilities of the Personal Representative and Trustee are similar and often overlap. However, their legal authority is limited to their controlling document. The Trustee manages the Trust while the Personal Representative is in charge of administering the probate estate in accordance with the Will.
Durable Power Of Attorney – Attorney In Fact:
This is a document that allows you to name someone you trust to act on your behalf in legal and financial matters. The term ‘Durable’ means that the document is not affected by your subsequent incapacitation. Thus, a durable power of attorney remains in effect if you become incapacitated. The Durable Power of Attorney is an important document to have during your lifetime, but becomes null and void when you pass away. The person using a power of attorney is referred to as the agent, the attorney, or fully the attorney-in-fact (whereas the lawyer you hire to prepare the document is an attorney-at-law).
Guardian Ad Litem:
A person (often an attorney) appointed by the court to represent the interests of a minor or incapacitated person in legal proceedings, such as trust or probate matters. This ensures that vulnerable individuals have a voice in the process.
Powers of Appointment:
A Power of Appointment is a power you give to someone which gives them the legal right to determine who will receive certain property in the future. This Power is typically given through a Trust or Will. Powers of appointment add flexibility to estate plans and can be a powerful tax and control tool. Powers can be:
- General – allowing the powerholder to appoint property to anyone, including themselves or their creditors; or
- Limited (or Special) – restricting appointments to a specific group, such as children or descendants.
Death Taxes/Estate Taxes:
A common term used to refer to estate taxes and inheritance taxes. Estate taxes are imposed on the total value of a person’s estate at death. In 2025, the Massachusetts estate tax exemption is $2M while the federal estate tax exemption is $13.99M. In Massachusetts, there is no inheritance tax, but in states that do impose an inheritance tax, such tax is paid by the beneficiary who receives the asset(s).
Administration Expenses:
These are the costs incurred during the administration of an estate or trust, such as legal fees, accounting costs, court filing fees, and appraisal charges.
Residue:
The “residue” (or “residuary estate”) refers to what is left of your estate after all debts, taxes, expenses, and specific gifts have been paid or distributed. This includes bank accounts, brokerage accounts, retirement accounts, real estate, life insurance, etc.
Issue:
“Issue” is a legal term that refers to a person’s direct descendants—children, grandchildren, and so on. It does not include nieces, nephews, or other relatives.
Right of Representation/Per Stirpes:
These terms relate to how your estate is divided among descendants. Per stirpes (Latin for “by the branch”) means that if one of your children dies before you, that child’s share passes to their own children in equal amounts.
Probate:
The court-supervised process of proving a will’s validity, settling debts, and distributing the probate assets. While probate ensures oversight, it can be time-consuming and expensive, which is why many people plan to avoid it using tools like revocable trusts.
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