CAUTION: THE FOLLOWING INFORMATION IS FOR GENERAL ENLIGHTENMENT ONLY. FOR ADVICE REGARDING YOUR PARTICULAR NEEDS CONTACT A QUALIFIED ATTORNEY IN YOUR AREA.

Glossary of Terms

Conservatorship:
An arrangement by which a court appoints a person to assist another person and be accountable to the court. A "conservatorship of the person" names an individual to assist another in providing for food, clothing and shelter. A "conservatorship of the estate" appoints a person to manage and control the assets of an incapacitated person.
 
Durable Power of Attorney:
A document by which the creator of the document can name another person to have authority to manage the creator's assets following the incapacity of the creator. When the document has no effect until the creator becomes incapacitated, it is called a "springing durable power of attorney."
 
Estate Planning:
The process of planning for management of a person's estate upon his/her incapacity and/or death and for management or disposition of his/her assets upon death.
 
Estate Taxes:
The tax on value of a deceased person's estate which is in excess of $1,500,000.00 in 2004.  The amount that a person can pass free of estate tax changes over the next few years.. The estate tax rates are between 37% and 55%. Proper planning can assist in minimizing estate taxes.
 
Living Trust:
An arrangement which takes effect during the lifetime of the creator of a trust. A living trust avoids probate on assets, which are titled in the name of the trustee of the trust. As of 1998, the terms of a trust must be revealed to beneficiaries and heirs of the creator of the trust when the terms become irrevocable. The terms usually become irrevocable when the creator of the trust dies.
 
Power of Attorney for Health Care:
A document by which the creator informs his/her medical care providers how he/she feels about receiving life sustaining treatment and to whom he/she wants medical providers to go for consent if the creator is unable to give informed consent.
 
Probate:
Probate is the process of gathering the assets held in the name of a deceased person, paying the deceased person's debts, and distributing the assets that remain in accordance with the Will of the deceased person or in accordance with the laws of intestate succession if the person left no valid will.
 
Trust Law:
The laws enacted in each state to control creation, management and administration of assets held in the name of a trust.
 
Will:
A document, which tells a court how a person wants their assets, distributed upon their death. A Will does NOT avoid probate.

Sandra D. Sickler

Certified Specialist in Probate, Estate Planning and Trust Law

Certified Specialist in Taxation

by State Bar of California, Board of Legal Specialization

1901 First Avenue, #100
San Diego, California 92101

(619) 696-9973
(619) 696-9974 (Fax)

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