G.56 Estate and Incapacity Planning Documents for CFP® Terms

A person appointed by the court to manage and distribute the estate of a deceased person who left no will.

Administrator

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A legal document in which a person specifies what actions should be taken for their health if they are no longer able to make decisions due to illness or incapacity.

Advance Medical Directive / Living Will

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A probate proceeding conducted in a different state from where the deceased person was domiciled, typically for property located in that other state.

Ancillary Probate

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A provision in a will that names the individual(s) designated to execute the terms of the will.

Appointment of Executor Clause

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A clause in a will where the witnesses certify that the will was executed properly.

Attestation Clause

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A person designated to act for another under a power of attorney.

Attorney in Fact

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A provision in a will that outlines the specific distribution of personal property.

Dictating who gets what personal items.

Bequest Clause

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An amendment to a will that modifies, explains, or revokes a provision in the existing will.

A will’s update or patch.

Codicil

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A provision in a will that specifies an alternative beneficiary if the primary beneficiary cannot inherit.

Contingent Legatee Clause

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A person who receives real estate from a will.

Devisee

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A provision in a will allowing a beneficiary to refuse inheritance to allow it to pass to the next beneficiary without gift tax consequences.

Disclaimer Clause

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The place where a person has their permanent primary residence to which they intend to return.

Domicile

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A legal document that grants another person the authority to make health care or property decisions on one’s behalf and remains effective if the grantor becomes incapacitated.

Durable Power of Attorney Issued Either for Health Care or for Property

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The process by which a deceased person’s property becomes state property if no eligible heirs or beneficiaries are found.

When there’s no one left on the inheritance list.

Escheat

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The person named in a will to manage the estate, ensuring that the will’s provisions are carried out.

Executor

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A legal statute that prevents an individual from inheriting from someone they are convicted of unlawfully killing.

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Felonious Homicide Statute

A legal rule in some jurisdictions that a portion of a deceased’s estate must go to certain family members, regardless of the will’s contents.

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Forced Heirship

A provision in a will that appoints a guardian for minor children or dependents.

Naming the caretaker for those who need it.

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Guardianship Clause

Individuals entitled by law to inherit part or all of an estate, typically when there is no will.

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Heirs

A will entirely handwritten and signed by the testator, typically not witnessed.

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Holographic Will

The condition of dying without a valid will, which results in the estate being distributed according to state laws.

No will? The state has a plan.

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Intestacy

The opening section of a will that identifies the testator and their intent to make the will.

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Introductory Clause

A single will that is created by two or more people, typically spouses, that is mutual and binding on all parties.

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Joint Will

A person who inherits personal property under a will.

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Legatee

Wills made by two or more parties that agree to **confer their property in a particular manner** and typically cannot be revoked or amended without the others’ consent.

Mutual Will

A clause in a will that threatens to **disinherit any beneficiary** who challenges the will's validity.

No-Contest Clause

An **oral will**, usually made on the testator's deathbed, witnessed by others, and intended for situations where making a written will isn’t possible.

Nuncupative Will

This term is not specifically related to estate planning but generally refers to someone having **qualifications exceeding what is necessary** for a role or task.

Overqualified

A way of distributing an estate where each living descendant at the same generation level **receives an equal share**.

Per Capita

A method of distributing an estate where if any beneficiary at one generation predeceases the testator, their **share is divided equally among the heirs** of the next generation.

Per Capita at each generation

An estate distribution method where **descendants inherit an equal share of an estate portion** that their deceased ancestor would have received if alive.

Per Stirpes

A medical order indicating a **patient’s preferences regarding treatments** commonly used in a medical crisis.

Physician Orders for Life Sustaining Treatment

A legal document authorizing one person to **act on another’s behalf** in legal or financial matters.

Power of Attorney

A specific type of power of attorney that **grants someone authority to handle property and financial matters**.

Power of Attorney for Property

The **person who grants authority** to an agent through a power of attorney.

Principal

Wills made by two people, typically spouses, in which they make **similar or identical provisions** in favor of each other.

Reciprocal Will

A provision in a will that **disposes of any assets** not specifically mentioned elsewhere in the will.

Residuary Clause

A part of a will that includes a **sworn statement by the witnesses**, making it unnecessary to call those witnesses to confirm the will’s validity during probate.

Self-Proving Clause

A non-legally binding document that accompanies a will, providing **additional instructions, wishes, or information** to the executor.

Side Instruction Letter

G.56 Estate and Incapacity Planning Documents Flashcards

Understand the various essential estate and incapacity planning document, including wills, trusts, powers of attorney, and healthcare directives. (39 cards)