Legal Terms and Definitions

COMMUNITY PROPERTY: in general, property acquired during marriage, except a gift to one person, an inheritance by one person, traceable assets owned by a person before marriage, or the income ("fruits") of these.

ESTATE PLANNING: the process by which we decide how to transfer our property to our beneficiaries with the least possible cost and inconvenience to them. Estate planning includes analysis of the tax consequences of proposed gifts and bequests, cash flow and debt management and the preparation of legal documents to protect our beneficiaries and carry out our wishes.

INTESTATE SUCCESSION:  Statutory order in which heirs inherit from a decedent who leaves no will.

JOINT TENANCY: a form of title, or ownership of property, which carries with it the right of survival.

REVOCABLE LIVING TRUST: one of a class of trusts known as Grantor Trusts. The living trust is a highly flexible agreement used to avoid probate and often to avoid Federal Estate Tax.
PROBATE: a legal procedure to approve a decedent's will, appoint a personal representative, identify and evaluate the decedent's assets, notify and pay creditors, and distribute the remaining estate to the decedent's beneficiaries, all under at least some Court supervision. Probate takes eight months to a year, and may cost thousands of dollars.