Administrator – The person appointed by the court to manage one’s estate when he or she dies without leaving a will. Administrators have the same duties as executors.
Beneficiary – An individual or charitable organization (such as the Bristol Community College Foundation) designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan.
Bequest – A gift or legacy left by a will or trust, typically personal property or assets.
Bond – A bond is a fixed-income investment that represents a loan made by an investor to a borrower (typically a corporation or government). Bonds pay interest over time and return the principal at maturity.
Capital gains – Capital gains are the profits earned when an asset, such as stock or real estate, is sold for more than its original purchase price.
Codicil – A legal instrument made to modify an earlier will.
Estate – The legal entity which manages and distributes a deceased person’s property.
Estate Tax – A federal tax on the value of the property held by an individual at his or her death (paid by the individual’s estate).
Executor (or Personal Representative) – The person named in a will to manage the estate. This person will collect the property, pay any debt and distribute the property or assets according to the will.
Grantor – The person who transfers assets into a trust for the benefit of him/herself or others.
Guardian – An individual legally appointed to manage the rights and/or property of a person incapable of taking care of his or her own affairs.
Heir – A person entitled to inherit a portion of the estate of a person who has died through an inheritance from an estate. The heir may inherit by the terms of a will or, if there is no will, the heirs are those defined as beneficiaries according to the law.
Intestate – The term applied when an individual dies without a will.
Legacy – A transfer of personal property by a will.
Living (Revocable) Trust – A revocable trust established by a grantor during his or her lifetime in which the grantor transfers some or all of his or her property into the trust.
Living Will – Instructions specifying decisions regarding an individual’s health if they are no longer able to make decisions due to illness or incapacity, and appoints a person to make such decisions on their behalf.
Mutual fund – A mutual fund is a professionally managed investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
Power of Attorney – A written legal document that gives an individual the authority to act for another.
Probate – The court supervised process of administering the estate of a deceased person by resolving all claims and distributing the deceased person’s property under a valid will.
Revocable/irrevocable – A revocable gift is one that can be changed or canceled by the donor at any time, such as a bequest in a will. An irrevocable gift cannot be changed once it’s made and may offer immediate tax benefits.
Stock – Stock represents ownership in a company.
Trust – A written legal instrument created by a grantor for the benefit of him/herself (during life) or others (during life or at death).
Trustee – The individual or institution entrusted with the duty of managing property placed in the trust. A “cotrustee” serves as trustee with another. A “contingent trustee” becomes trustee upon the occurrence of a specified future event.
Will – A legally executed document that directs how and to whom a person’s property is to be distributed after death.