Estate Planning & Trusts

Advance Directive – A legal document that outlines your healthcare wishes in case you become unable to make decisions for yourself.
Beneficiary – A person or entity designated to receive assets from a will, trust, or insurance policy.
Durable Power of Attorney – A document that allows someone to act on your behalf for financial or legal matters, even if you become incapacitated.
Executor – The person named in a will who is responsible for carrying out its instructions.
Financial Power of Attorney – A legal document that grants someone the authority to manage your financial affairs if you become incapacitated.
Fiduciary – A person or institution with a legal duty to act in the best interest of another party.
Grantor – The person who creates a trust and transfers assets into it.
Guardianship – A legal process where a court appoints a person to make decisions for someone unable to do so themselves.
Health Care Power of Attorney – A legal document allowing a designated person to make medical decisions on your behalf.
HIPAA Nomination – A document that authorizes designated individuals to access your medical records and communicate with healthcare providers.
Living Trust – A trust created during your lifetime that allows for asset management and distribution outside of probate.
Living Will – A legal document that states your preferences for medical treatment in case you become terminally ill or incapacitated.
Pour-Over Will – A will that transfers any remaining assets into a trust upon death.
Revocable Trust – A trust that can be changed or revoked during the grantor’s lifetime.
Testamentary Trust – A trust created by a will that only goes into effect after death.
Testator – The person who creates and signs a will.
Trustee – The person or institution responsible for managing a trust’s assets.
Will – A legal document that states how your assets should be distributed after death.

Probate

Administrator – A person appointed by the court to manage an estate when there is no will.
Assets – Property, money, and valuables owned by a person at death.
Decedent – A person who has passed away.
Estate – All the assets and debts left behind by a deceased person.
Estate Account – A bank account used by the executor or administrator to manage estate funds during probate.
Full Probate – The formal court-supervised process of distributing a deceased person’s estate.
Heir – A person legally entitled to inherit from a deceased individual’s estate.
Intestate – Dying without a valid will, causing state law to determine asset distribution.
Letters of Authority – Court-issued documents granting an executor or administrator power to manage an estate.
Probate – The court-supervised process of validating a will and distributing an estate.
Probate Assets – Assets that must go through probate before they can be distributed to beneficiaries.
Relief from Administration – A simplified probate process for smaller estates, reducing court involvement.
Surviving Spouse’s Rights – Legal rights granted to a spouse after the death of their partner, including allowances and elective share rights.
Will Contest – A legal challenge to the validity of a will.

Medicaid Planning

Asset Protection Trust – A trust designed to safeguard assets while allowing Medicaid eligibility.
Community Spouse – The spouse of a person entering long-term care, entitled to retain certain assets.
Community Spouse Resource Allocation – The portion of assets a community spouse is allowed to keep while the institutional spouse qualifies for Medicaid.
Improper Transfer – The transfer of assets for less than fair market value that may result in Medicaid penalties.
Institutional Spouse – A spouse receiving long-term care in a Medicaid-approved facility.
Look-Back Period – The five-year period before a Medicaid application during which asset transfers are reviewed.
Medicaid Compliant Annuity – A financial tool that converts assets into income to help qualify for Medicaid.
Medicaid Estate Recovery – A program that seeks repayment of Medicaid benefits from the estate of a deceased recipient.
Medicaid Spend Down – The process of reducing assets to qualify for Medicaid coverage.
Miller Trust (Qualified Income Trust) – A trust used to meet Medicaid income limits for long-term care.
Nursing Home Medicaid – Medicaid coverage for long-term care in a skilled nursing facility.
Penalty Period – A delay in Medicaid eligibility due to improper asset transfers.
Pooled Trust – A special needs trust that allows disabled individuals to qualify for Medicaid while preserving funds.
Resource Limit – The maximum allowable assets a person can have to qualify for Medicaid.

Special Needs Planning

ABLE Account – A tax-advantaged savings account for individuals with disabilities that does not affect government benefits.
Guardian – A person legally appointed to make decisions for an incapacitated or disabled individual.
Letter of Intent – A document providing guidance on how to care for a person with special needs.
Public Benefits – Government assistance programs like Medicaid and Supplemental Security Income (SSI).
Representative Payee – A person appointed to manage Social Security benefits for a disabled individual.
Self-Settled Special Needs Trust – A trust created with the disabled person’s own assets to maintain Medicaid and SSI eligibility.
Supplemental Security Income (SSI) – A federal program that provides income assistance to disabled individuals with limited resources.
Third-Party Special Needs Trust – A trust funded by someone other than the disabled individual to provide financial support without affecting benefits.
Trust Protector – A person appointed to oversee and modify a special needs trust as needed.
Vocational Rehabilitation Services – Programs designed to help disabled individuals gain employment and independence.

This glossary is designed to help you navigate common legal terms related to estate planning, probate, Medicaid, and special needs planning. If you have any questions, contact Joseph Orlando Law, LLC, for expert legal guidance.