Glossary
Devise - a testamentary disposition of real or personal propertyDonor(s) - The person(s) who create a trust. Other commonly used terms are settlor, trustor, or trustmaker. The Donor may or may not also be a Trustee and/or Beneficiary.
Estate - All the assets that a person owns at the time of death, including both real estate and personal property. This is a general term, and takes on different meanings depending on the context - for instance, the probate estate vs. the taxable estate.
Personal Representative - Under the Massachusetts Uniform Probate Code (MUPC), this term replaces Executor, Executrix, Administrator, and Administratrix. The Personal Representative is the person who administers the estate of the deceased.
General Devise - A testamentary gift of a certain dollar amount given upon the giver's death via a Will. For example, "I give $10,000 to my uncle, Elmer Fudd." There is no reference to where that $10,000 will come from. It will be up to the Executor to decide from which account the money should come, or which asset of the estate needs to be liquidated to raise the $10,000.
Homestead Declaration - A document that can be filed with the Registry of Deeds, protecting $500,000 worth of equity in one's primary residence from certain types of creditors.
No-Contest Clause - Also sometimes called an in terrorem clause. This is language that can be inserted into a Will that discourages heirs from contesting the Will by automatically disinheriting anyone who does so.
Personal Property - Any property that is not real estate. This includes not only personal items such as clothing, jewelry, and automobiles, but also cash, stocks, bonds, CDs, etc.
Probate - A court proceeding in which a deceased person's estate is administered. It is not necessarily an adversarial proceeding, but in some cases it can become adversarial if any interested party chooses to challenge the validity of a will or the appointment of a particular Personal Representative.
Residue (also called Rest, Residue, and Remainder) - Real or personal property given via a Will that is neither a Specific nor General Devise.
Revocable - This term describes a power reserved to the Donor in many types of trusts. The Donor has the power to change the terms of the trust agreement or to eliminate the trust altogether and regain complete ownership of the trust assets.
Specific Devise - A gift of real or personal property that is specifically referred to in a Will. For example, "I give my 1969 Corvette to my nephew Roger Rabbit," or "I give my beach house on Nantucket to my niece Jessica Rabbit."
Spendthrift Clause - Language that can be inserted into a Trust document that protects a Beneficiary's interest in the trust from most types of creditors.
Testator - A person who makes a Will.
Trust (generally) - An agreement between the person creating the trust (called the Donor) and the person who will manage the trust (called the Trustee) for the benefit of one or more individuals (Beneficiaries).
Trust (Living Trust) - A commonly used term. It is simply a trust that is created during the Donor's lifetime. Assets held by a Living Trust do not have to go through probate upon the Donor's death. This type of trust can be either revocable or irrevocable.
Trust (Testamentary Trust) - Used less often, this type of trust is created upon the death of the Donor. The Donor's Will spells out who the Trustee and Beneficiaries will be, and how the trust property will be managed. This type of trust is useful in some situations, but it does not allow one's estate to avoid probate.
Trust (Supplemental/Special Needs) - A trust drafted to provide items in excess of basic support and not be a countable asset or resource for purposes of determining the Beneficiary's eligibility for Medicaid or similar public benefits.
Will - A document by which a person directs his or her estate to be distributed upon death. It also nominates a Personal Representative to administer the estate, and if applicable, a Guardian to take custody of any minor children of the Testator. A Will does not have any legal effect until it is filed with the appropriate court when the Testator dies.
