Common Terms and Definitions

An Administrator is a person appointed by the probate court to manage and settle the estate of someone who has died without a valid will (i.e., died intestate). The administrator performs duties similar to an executor but is chosen by the court rather than named in a will.

An Advance Health Care Directive is a legal document that allows an individual (the principal) to specify their healthcare preferences and appoint a healthcare agent to make medical decisions on their behalf if they become unable to do so.

A beneficiary is a person, trust, organization, or entity that is legally entitled to receive assets or benefits from an estate, trust, insurance policy, retirement account, or other financial instrument.

Conservatorship is a legal arrangement in which a court appoints a person or professional (called a conservator) to manage the personal care and/or financial affairs of another adult (the conservatee) who is unable to manage them on their own due to incapacity, disability, or serious illness.

A court accounting is a formal, detailed financial report submitted to a probate court by a fiduciary—such as a trustee, conservator, executor, or administrator—to show how assets have been managed during a given period of administration.

Daily Money Management (DMM) is a professional service that helps individuals—particularly seniors, people with disabilities, or busy professionals—manage routine financial and household tasks. A daily money manager ensures that bills are paid on time, records are organized, and financial obligations are met, while preserving the client’s independence and dignity.

A dynasty trust is a long-term trust designed to preserve wealth across multiple generations while minimizing estate, gift, and generation-skipping transfer (GST) taxes.

Estate refers to all the assets, debts, and legal interests a person owns at the time of their death. This includes real estate, personal property, bank accounts, investments, business interests, and any outstanding liabilities.

An Executor is the person named in a will to carry out the decedent’s instructions after death. The executor is responsible for managing the estate, paying debts and taxes, and distributing assets to beneficiaries as directed in the will.

A fiduciary is a person or organization legally and ethically obligated to act in the best interests of another party. This role involves a high standard of care, loyalty, and trust, particularly when managing money, property, or personal matters on behalf of someone else.

A Guardian of the Estate is a person appointed by the court to manage the financial affairs of a minor (a child under 18) who cannot legally control their own property. This role ensures the minor’s money, income, and assets are protected and used appropriately until the child becomes an adult or the guardianship is otherwise terminated.

A Healthcare Power of Attorney (Healthcare POA) is a legal document that allows an individual (the principal) to appoint someone they trust (the agent or healthcare proxy) to make medical decisions on their behalf if they are unable to do so due to illness, injury, or incapacity.

A HIPAA Authorization is a legal document that allows a named person or organization to access, use, or disclose an individual’s protected health information (PHI) under the federal Health Insurance Portability and Accountability Act (HIPAA).

"Inter vivos" is a Latin term meaning “between the living.” In the context of trusts and estate planning, an inter vivos trust refers to a trust that is created and becomes effective during the lifetime of the person creating it (the grantor or settlor). It contrasts with a testamentary trust, which is established by a will and only takes effect after the person’s death.

Intestate refers to a situation in which a person dies without a valid will. When someone dies intestate, their estate is distributed according to the default laws of intestate succession in the state where they lived.

An irrevocable trust is a type of trust in which the grantor permanently transfers ownership of assets to the trust. Once established, the terms of the trust typically cannot be changed, and the grantor cannot reclaim the assets or dissolve the trust without legal process or beneficiary agreement.

A person licensed by the California Professional Fiduciaries Bureau to provide fiduciary services such as trust administration, estate administration, conservatorships, and daily money management.

A life estate is a type of property ownership where one person, called the life tenant, has the legal right to use and occupy a property for the duration of their life, after which the property automatically transfers to another person, called the remainderman.

A payback trust (also called a (d)(4)(A) special needs trust) is a trust established for the benefit of a person with a disability under age 65, using their own funds (such as a personal injury settlement or inheritance). Upon the beneficiary’s death, any remaining assets must be used to reimburse the state Medicaid program for benefits received during their lifetime.

A Personal Representative is a general legal term referring to the person authorized to administer the estate of someone who has died. This role includes both executors (named in a will) and administrators (appointed by the court when there is no will).

A legal arrangement providing for the care of pets after the owner’s death, managed by a trustee who ensures that funds are used appropriately for the pet's benefit.

A pooled trust is a type of trust established and managed by a nonprofit organization for the benefit of individuals with disabilities. Each beneficiary has a separate account, but funds are combined (pooled) for investment purposes. These trusts allow individuals with disabilities to preserve eligibility for means-tested government benefits (such as Medicaid or Supplemental Security Income) while still using the trust funds for their supplemental needs.

Probate is the court-supervised legal process used to validate a deceased person's will (if one exists), appoint a personal representative, settle debts and taxes, and distribute the estate’s assets to rightful heirs or beneficiaries.

A revocable trust is a legal entity created by a person (the grantor) to hold and manage their assets. The grantor retains the ability to amend, update, or terminate the trust at any time during their lifetime. Upon the grantor’s death or incapacity, the trust becomes irrevocable and the successor trustee takes over management and distribution of the assets according to the trust terms.

A Special Needs Trust (SNT) is a legal trust created to hold assets for the benefit of a person with a disability, without disqualifying them from means-tested government benefits like SSI (Supplemental Security Income) and Medicaid. The trust pays for supplemental needs that enhance the beneficiary’s quality of life, but does not replace basic public assistance.

Protects beneficiaries who may not manage money well—it restricts access and limits creditors from seizing trust assets

The person or professional named in a trust document to step in and manage the trust if the original trustee is unable or unwilling to continue.

A testamentary trust is a trust established within a last will and testament that becomes effective only upon the death of the testator. The will outlines the trust’s terms, and the probate court oversees its creation and administration.

A testator is a person who creates and signs a will. The term refers to someone who has made a valid last will and testament to direct how their estate should be distributed after death.

A trust is a legal arrangement in which a person (the grantor or settlor) transfers property to a trustee, who holds and manages it for the benefit of one or more beneficiaries, according to the terms set out in a trust document.

A trust advisor provides nonbinding guidance to the trustee, typically on matters like investments, distributions, or beneficiary needs. Unlike a trust protector, they do not have legal authority to override the trustee but may be influential.

A third-party trust is a type of special needs trust that is funded with someone else’s money—not the assets of the beneficiary with a disability. It is typically created by a parent, grandparent, or other relative as part of an estate plan and is designed to supplement (not replace) public benefits like SSI or Medicaid.

A trust protector is a person or entity granted specific powers to oversee the trustee and ensure the trust is administered as intended by the grantor. They are not the trustee but have the authority to step in under certain conditions.

A trustee is a person or organization appointed to manage and administer a trust in accordance with the terms set by the grantor (also called the trustor or settlor). The trustee has a fiduciary duty to act in the best interest of the beneficiaries.

A will—also known as a last will and testament—is a legal document that states a person’s wishes for how their assets, property, and personal responsibilities (such as guardianship of minor children) should be handled after their death.