Estate planning glossary.

The person appointed by the court to settle an estate when there is no will. In Arizona, this role is called a personal representative.

A sworn statement that confirms a trust exists and identifies its trustee, usually provided to banks or title companies in place of the full trust document.

An irrevocable trust designed to shield assets from future creditors while allowing limited benefits to the grantor. Arizona recognizes certain domestic asset protection arrangements under specific conditions.

The person or entity entitled to receive assets from a trust, will, or account after the owner dies or the trust triggers a distribution.

A form naming who receives an account (retirement, life insurance, payable-on-death) directly at death. Beneficiary designations override what your will says for those specific accounts.

A contract between business co-owners setting how ownership transfers if an owner dies, retires, or wants out. Funded with life insurance in most well-designed Arizona small businesses.

A shorter version of an Affidavit of Trust used to verify a trust to third parties without exposing its full terms and beneficiaries.

An irrevocable trust that pays income to you or your beneficiaries for a set period, with the remainder going to a charity you name. Used for income tax deductions and to defer capital gains.

Property acquired by spouses during marriage in Arizona, owned equally by both. Separate property (acquired before marriage or by gift or inheritance) is owned individually. Community property has important estate planning and tax implications at death.

Moving real estate ownership from one party to another, commonly used to transfer property into a revocable living trust. Must be recorded with the Arizona county where the property sits.

A trust created when a beneficiary formally refuses (disclaims) an inheritance, causing it to pass under the disclaimer trust terms instead. Used for flexibility in marital and tax planning.

A power of attorney that stays valid if you become incapacitated. Under Arizona law, a financial power of attorney must explicitly say it is durable to continue in effect after incapacity.

A long-term irrevocable trust designed to hold family wealth across multiple generations while minimizing transfer taxes at each level.

A federal tax on the transfer of wealth at death. Arizona does not have a state estate tax. The federal exemption is historically high but scheduled to change.

The person named in a will to administer the estate. In Arizona the formal term is personal representative.

Someone legally required to act in another person's best interest, such as a trustee, personal representative, or agent under a power of attorney.

The process of retitling assets (real estate, accounts, business interests) into the name of your trust. An unfunded trust does not avoid probate no matter how well it is drafted.

The person who creates a trust and transfers assets into it. Also called a settlor or trustor.

Someone appointed to care for a minor child or an incapacitated adult. In Arizona, a guardian handles personal and medical decisions while a conservator handles finances.

A combined Arizona document that names a healthcare agent and records your end-of-life treatment wishes. Replaces or overlaps with what other states call a healthcare power of attorney and living will.

A handwritten will. Arizona recognizes holographic wills if the signature and material portions are in the testator's own handwriting, but they are prone to disputes.

A legal determination that a person can no longer manage their own affairs. Well-drafted powers of attorney and trusts let someone step in without a court proceeding.

Dying without a valid will. Arizona's intestate succession statute (A.R.S. § 14-2101 and following) decides who inherits. Rarely matches what someone would have wanted.

A trust that cannot easily be changed or revoked after it is created. Used for asset protection, tax planning, and Medicaid-type planning. Compare with revocable trust.

A form of co-ownership where the surviving owner automatically inherits the other's share at death, avoiding probate for that asset. Arizona recognizes joint tenancy with right of survivorship as well as community property with right of survivorship for spouses.

A trust created and funded during your lifetime, almost always revocable. The workhorse of modern Arizona estate planning because it avoids probate and manages incapacity privately.

A standalone document stating end-of-life treatment preferences. In Arizona it is usually combined into the Healthcare Directive.

The unlimited federal estate and gift tax deduction for transfers between U.S. citizen spouses. Allows wealth to pass to a surviving spouse without federal transfer tax.

A trust holding assets for a child until they reach an age chosen by the grantor. Prevents a young beneficiary from receiving a lump sum at 18.

The governing document for a limited liability company. Determines ownership percentages, voting, distributions, and buy-sell terms. Essential for Arizona business owner estate planning.

A designation on a bank account that passes the balance directly to a named beneficiary without probate. Transfer on Death (TOD) is the securities equivalent.

Arizona's term for executor or administrator. The person who settles an estate under court supervision in formal probate or with less oversight in informal probate.

A simple will used alongside a trust. It directs anything not already in the trust at death to "pour over" into the trust. A safety net, not the main plan.

A document authorizing one person (the agent) to act on behalf of another (the principal). Arizona recognizes financial and healthcare powers of attorney.

The court-supervised process of validating a will, paying debts, and distributing assets. Arizona has formal, informal, and small estate procedures. Usually avoidable with a funded trust.

Qualified Personal Residence Trust. An irrevocable trust that transfers a home to beneficiaries at a discounted gift tax value while letting the grantor live there for a set term.

Qualified Terminable Interest Property trust. Gives a surviving spouse income for life while preserving the principal for other beneficiaries (often children from a prior marriage). Common in blended family plans.

A trust that can be changed or revoked by the grantor at any time. The standard foundation of an Arizona estate plan. Not an asset protection or tax-planning tool by itself.

Property one spouse owns individually in Arizona, either because they owned it before marriage or received it by gift or inheritance. Kept separate from community property.

Another word for grantor. The person who creates a trust.

A trust designed to hold assets for a beneficiary with disabilities without disqualifying them from SSI, Medicaid, or other needs-based benefits.

A trust with a provision that prevents beneficiaries from assigning their interest and generally protects the trust from the beneficiary's creditors.

The person or institution that takes over as trustee when the original trustee dies, resigns, or becomes incapacitated. Often the single most important role in a revocable trust.

The work of settling a trust after the grantor dies or becomes incapacitated. Includes inventorying assets, paying debts and taxes, and distributing to beneficiaries.

A document that changes specific provisions of a revocable trust without replacing the whole agreement.

A third party given limited authority over a trust, such as removing a trustee or modifying certain terms in response to changes in law or family circumstances.

A complete rewrite of a revocable trust while keeping the original trust as the legal entity. Cleaner than a stack of amendments when many changes are needed.

The person or institution that manages a trust. Holds legal title to trust assets and has fiduciary duties to the beneficiaries.

A written document stating who receives your property at death and naming a personal representative. By itself a will does not avoid probate in Arizona.