Probate Glossary and Estate Planning Terms (200+ California Definitions)

Trust plans for married couples that divide into separate shares when the first spouse dies.

In an A-B trust, the surviving spouse's share goes into the A trust (survivor's trust), and the deceased spouse's share goes into the B trust (bypass trust). The B trust is usually locked in, so the deceased spouse's choices about who ultimately inherits cannot be changed by the survivor.

An A-B-C trust adds a third share. The deceased spouse's assets up to the estate tax exemption go to the B trust, and anything above that goes to a C trust, usually a QTIP marital trust, so estate tax is deferred until the surviving spouse dies.

These structures were built mainly to reduce federal estate tax. Because a surviving spouse can now use the deceased spouse's unused exemption (portability), many couples use them for other reasons, such as protecting children from a prior relationship. A drawback is that B trust assets generally do not receive a second step-up in basis when the survivor dies. California has no state estate tax. See also Bypass Trust, Portability, QTIP Trust, Survivor's Trust.

A detailed financial report showing what came into an estate or trust, what was paid out, and what is left. In a California probate, the personal representative usually files an accounting with the court before the estate is closed, although beneficiaries can sometimes waive it in writing (Prob. Code 10900, 10954). Trustees of California trusts must also account to beneficiaries, generally at least once a year (Prob. Code 16062).

What happens when a will or trust leaves a specific item to someone, but the person who made the gift no longer owns that item at death. The gift generally fails, and the beneficiary does not receive a substitute. California law includes several exceptions, for example when the item was sold by a conservator or agent, or when unpaid sale proceeds or insurance payouts remain (Prob. Code 21131 to 21135).

The expenses of handling an estate or trust after a death. Examples include attorney and accountant fees, personal representative or trustee compensation, appraisal and court filing fees, and recording costs. These costs are typically paid from estate or trust assets before beneficiaries receive their shares and may be deductible for estate or income tax purposes. In a California probate, attorney and personal representative fees are set by statute unless the court allows extra fees (Prob. Code 10800, 10810).

The legal process that creates a parent-child relationship between people who are not related by birth. Under California law, an adopted child generally inherits from and through the adoptive parents just like a biological child (Prob. Code 6450, 6451).

A California document that lets you name someone (your health care agent) to make medical decisions for you if you cannot, and to write down your wishes about medical care, such as life-sustaining treatment, pain relief, and organ donation. It replaces the older separate "living will" and "durable power of attorney for health care" forms, and is also called a health care power of attorney or health care proxy. California provides an optional statutory form (Prob. Code 4701). See also HIPAA Authorization, POLST.

A written statement of facts that the signer swears is true, usually in front of a notary. Affidavits come up often in estate matters, for example to transfer a small estate without probate, to clear title after a joint tenant or trustee dies, or to confirm who the heirs are. In California, many court filings use a declaration signed under penalty of perjury instead of a notarized affidavit. See also Declaration, Small Estate Affidavit.

A sworn statement, recorded with the county recorder along with a certified death certificate, that updates title to real estate after an owner dies. An affidavit of death of joint tenant clears the deceased owner from title so the survivor holds the property. An affidavit of death of trustee shows that a successor trustee has taken over title to trust property (Prob. Code 210 to 212).

A person you choose to act for you under a power of attorney or advance health care directive. A financial agent, also called an attorney-in-fact, handles money, property, and paperwork; the agent does not need to be a lawyer. A health care agent makes medical decisions when you cannot. An agent must act in your best interest, follow your instructions, and keep your money separate from their own. See also Power of Attorney.

Learn more: How to choose a power of attorney agent (video)

An option on the federal estate tax return to value the estate's assets six months after death instead of on the date of death. It can be elected only if it reduces both the value of the gross estate and the estate tax owed (IRC 2032). Assets sold or distributed within the six months are valued on the date of sale or distribution.

A separate, parallel way of calculating federal income tax that limits some deductions and exemptions, so that a taxpayer with substantial income or deductions pays at least a minimum amount of tax. The tax is figured both ways and the higher amount is owed. Estates and trusts are subject to the alternative minimum tax as well, and their exemption amount is much smaller than the one for individuals, so a trustee or personal representative should check for it when an estate or trust claims large deductions or receives preference income, such as interest from certain tax-exempt bonds. California has its own alternative minimum tax, too.

A second probate case opened in another state, in addition to the main probate in the decedent's home state. It is usually needed when the decedent owned real estate in another state in their own name. Holding out-of-state property in a living trust can often avoid this extra proceeding.

The amount you can give to any one person each year without filing a gift tax return or using any of your lifetime exemption. For 2026, the amount is $19,000 per recipient, and a married couple can give $38,000 per recipient by combining their exclusions. The amount is adjusted for inflation over time. Gifts to a spouse who is a U.S. citizen are unlimited; gifts to a non-citizen spouse have a separate, higher annual limit. Payments made directly to a school for tuition or to a medical provider for someone's care are also excluded. See also Gift Tax, Marital Deduction.

Learn more: Year-end estate planning moves

A professional opinion of what an asset is worth on a certain date. Appraisals are used to set values for estate tax returns, to divide assets fairly among beneficiaries, and to establish the new tax basis for inherited property. In a California probate, most non-cash assets are valued by a probate referee appointed by the State Controller, while the personal representative values cash and similar items (Prob. Code 8901, 8902). See also Fair Market Value, Probate Referee.

A limit in a trust that ties distributions to a beneficiary's health, education, maintenance, and support (often called "HEMS"). Using this standard gives the trustee guidance and, importantly, means a beneficiary who also serves as trustee is not treated as owning the trust assets for estate tax purposes. Broader terms such as "happiness" or "best interests" do not meet the tax definition.

A trust designed to shield assets from future creditors. A trust created for someone else's benefit (for example, a child) can offer strong protection. A trust you create for your own benefit generally does not protect assets from your own creditors under California law (Prob. Code 15304), although some other states allow this. Transfers made to avoid existing or expected creditors can be undone as fraudulent transfers. See also Spendthrift Trust.

Anything of value a person owns. Examples include real estate, bank and investment accounts, retirement accounts, life insurance, business interests, money owed to the person, vehicles, household items, jewelry, art, and intellectual property such as patents or copyrights.

A written document that transfers ownership of property or rights from one person to another. In estate planning, an assignment is commonly used to move personal property, business interests, or other assets without a formal title into a living trust.

Attestation is the act of watching someone sign a document and then signing as a witness. A California will generally must be attested by two adult witnesses present at the same time who understand the document is the signer's will (Prob. Code 6110). The attestation clause is the paragraph at the end of a will, signed by the witnesses, stating that the signing followed the legal requirements. A well-drafted clause signed under penalty of perjury makes it easier to prove the will later.

For income tax purposes, the starting value of an asset, usually what the owner paid for it plus the cost of improvements. When the asset is sold, the amount received above the basis is the gain, which is subject to capital gains tax. See also Capital Gains, Step-Up in Basis.

Learn more: Step-up in basis in California

A person or organization named to receive property or other benefits from a will, trust, insurance policy, or account.

A form you complete with a bank, insurance company, or retirement plan that names who will receive the account or policy when you die. These assets pass directly to the named person and do not follow your will, so the designation should match your overall plan. Common examples are life insurance, IRAs, 401(k)s, and payable-on-death or transfer-on-death accounts. In California, a divorce or annulment generally cancels a designation in favor of the former spouse, with some exceptions (Prob. Code 5040). Review designations after major life events.

A gift of property made in a will. To bequeath is to make such a gift. "Legacy" is an older word for the same thing. California's Probate Code generally uses "gift" or "devise." See also Devise, Specific Gift.

A bank or investment account that cannot be withdrawn from without a court order. In California probate, a court may require estate funds to be placed in a blocked account as an alternative to, or to reduce the amount of, a bond (Prob. Code 8483). Blocked accounts are also used for minors and conservatees.

A type of insurance, issued by a surety company, that protects an estate or its beneficiaries if a personal representative, guardian, or conservator mishandles the assets. The surety agrees to pay if the fiduciary fails in their duties. California generally requires a bond for a personal representative unless the will waives it or all beneficiaries waive it in writing, though the court may still require one (Prob. Code 8480, 8481). The cost is usually paid from the estate. See also Blocked Account.

A trust funded at the first spouse's death, usually with assets up to the deceased spouse's estate tax exemption. Its assets are not counted in the surviving spouse's taxable estate, so they and any growth pass to the final beneficiaries without a second estate tax. The survivor can often receive income and some principal but cannot change who ultimately inherits. Also called a B trust, credit shelter trust, exemption trust, or family trust. (Many people also use "family trust" as a name for their revocable living trust.) See also A-B Trust and A-B-C Trust.

A method of dividing property among descendants when a child or other descendant has died first. Under California law, if a will or trust signed on or after January 1, 1986 says "by representation," "by right of representation," or "per stirpes," the property is divided into equal shares at the children's level, and a deceased child's share passes down to that child's own descendants, unless the document says otherwise (Prob. Code 246). Other states define the term differently. Compare Per Capita at Each Generation, Per Stirpes, and the default intestate rule in Prob. Code 240.

A person's mental ability to understand and make a particular legal decision. The required level depends on the document and how complicated it is. Testamentary capacity, the standard for a will, asks whether the person understood what a will is, what they owned, and who their close family members are (Prob. Code 6100.5). Trusts, contracts, and gifts may require more, depending on their complexity. A court evaluates capacity based on specific mental functions, not just a diagnosis (Prob. Code 810 to 812).

A person who cannot manage their own personal care, property, or finances is said to be incapacitated. Many trusts and powers of attorney define incapacity, often requiring a doctor's written statement. See also Conservatorship, Undue Influence.

The profit from selling an asset such as real estate or stocks for more than its tax basis. Capital gains are subject to income tax, with lower rates for assets held more than one year. Because inherited assets usually receive a stepped-up basis, heirs who sell soon after a death often owe little or no capital gains tax. See also Basis, Step-Up in Basis.

A short document signed by the trustee that confirms a trust exists and states who the trustees are and what powers they have, without revealing the beneficiaries or private details. Banks, title companies, and others can rely on it instead of reviewing the full trust. California law sets out what it must contain (Prob. Code 18100.5). Also called a certificate of trust, affidavit of trust, or trustee's affidavit.

An official copy of a court record or other public document that the issuing office stamps or stamps as an accurate, complete duplicate of the original on file. Banks and title companies often require certified copies of letters or death certificates.

A California form (BOE-502-D) that must be filed with the county assessor when real property passes because of a death. It is due within 150 days after the death or, if the property is in probate, when the inventory and appraisal is filed (Rev. and Tax. Code 480). Failing to file can result in penalties. See also Preliminary Change of Ownership Report, Proposition 19.

An irrevocable trust that makes payments to one or more charities for a set number of years or for someone's lifetime. When that period ends, the remaining assets go to non-charitable beneficiaries such as family members. Depending on how it is set up, a CLT can reduce gift or estate tax on the amount eventually passing to family. See also Charitable Remainder Trust.

An irrevocable trust that pays income to you or other chosen people for life or for a set number of years, and then gives what is left to charity. The donor may receive an income tax deduction for the expected charitable gift, and appreciated assets can be sold inside the trust without immediate capital gains tax. Charitable remainder and lead trusts are known as split-interest gifts because the benefit is divided between charity and individuals. See also Charitable Lead Trust.

A court document ordering a person to appear at a hearing, or to explain why the court should not take a requested action. In probate, citations are used, for example, to require someone to appear and answer questions about estate assets.

A planning tool for married couples in which assets pass into a trust for the surviving spouse that can qualify as a QTIP marital trust. After the first death, the executor decides how much of that trust to elect as QTIP property on the estate tax return. Any portion not elected typically passes to a different trust, such as a bypass trust, under terms set in the document. This gives the family time to decide, based on the tax law and asset values at that point, how much to shelter versus defer. The name comes from the federal court case Estate of Clayton. See also QTIP Trust.

A written amendment to a will. It must be signed with the same formalities as a will. When many changes are needed, it is often clearer to sign a new will.

Two or more people or institutions serving together as trustees of the same trust. In California, co-trustees must act unanimously unless the trust document says otherwise (Prob. Code 15620).

A single trust that holds assets for a group of beneficiaries, often young children, until a set event occurs, such as the youngest reaching a certain age. The trustee can spend unequally based on each beneficiary's needs before the trust is divided. Also called a pot trust.

Under California law, most property either spouse earns or acquires while married and living in California, other than gifts and inheritances, is owned equally by both spouses (Fam. Code 760). Each spouse owns one-half at all times, and each can leave their half by will or trust. California also treats property acquired elsewhere that would have been community property if acquired here as quasi-community property. Registered domestic partners are treated the same as spouses. Other community property states are Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. See also Separate Property.

A California form of title for married couples and registered domestic partners that combines community property treatment with automatic survivorship (Civ. Code 682.1). When one spouse dies, the survivor takes the property without probate, and both halves generally receive a new tax basis. See also Community Property, Joint Tenancy.

Two ways a trust can be set up to receive retirement accounts. In a conduit trust, the trustee must pass any distributions taken from the account straight through to the beneficiary. This simplifies tax treatment but offers less protection, because the money ends up in the beneficiary's hands. In an accumulation trust, the trustee may keep distributions in the trust, which offers more protection from creditors or poor spending, but income kept in the trust may be taxed at higher trust income tax rates. See also Inherited IRA.

Being related by blood through a common ancestor. A consanguinity chart is often used to determine who the closest relatives are under intestate succession rules.

A court case in which a judge appoints a conservator to care for an adult who cannot meet their own basic needs for health, food, clothing, or shelter (conservatorship of the person), or who is substantially unable to manage their finances or resist fraud (conservatorship of the estate), or both (Prob. Code 1801). The adult is called the conservatee, and the money and property the conservator manages is the conservatorship estate.

The conservator acts under court supervision and must file reports and accountings. Courts consider less restrictive options first, and a durable power of attorney and funded living trust can often avoid a conservatorship, which is sometimes called "living probate." In California, conservatorships are for adults; guardianships are for minors. See also Guardianship, Limited Conservatorship, LPS Conservatorship.

A backup beneficiary who receives property only if the primary beneficiary has died, refuses the gift, or otherwise cannot receive it.

Moving a court hearing to a later date.

A bank, trust company, or other professional firm that serves as trustee or co-trustee for a fee. Also called a corporate fiduciary or professional trustee.

A creditor is a person or business that is owed money. A creditor's claim is the creditor's formal written demand for payment from a decedent's estate. In a California probate, claims generally must be filed by the later of four months after letters are first issued or 60 days after notice was mailed or delivered to that creditor (Prob. Code 9100). Judicial Council form DE-172 is commonly used, and the personal representative allows or rejects each claim. A trustee may use a similar optional claims procedure for a trust (Prob. Code 19000 and following).

An irrevocable trust that gives beneficiaries a short, temporary right to withdraw money added to the trust. That right allows contributions to qualify for the annual gift tax exclusion. Crummey trusts are commonly used to hold life insurance. The beneficiaries' rights are called powers of withdrawal. The name comes from the court case Crummey v. Commissioner.

Whoever is holding the original will when the will maker dies. In California, that person must deliver the original will to the superior court clerk in the county where the decedent lived within 30 days after learning of the death, and must also mail a copy to the named executor if known (Prob. Code 8200).

A person who has died.

A written statement that the signer states is true under penalty of perjury. In California, a declaration can generally be used in place of a notarized affidavit in court filings (Code Civ. Proc. 2015.5).

A document that transfers ownership of real estate. A deed is recorded with the county recorder to create a public record of the change and protect the new owner. California transfers usually use a grant deed or quitclaim deed; the warranty deed, in which the seller fully guarantees title, is common in other states but rarely used here. See also Grant Deed, Quitclaim Deed, Revocable Transfer on Death Deed.

A person's children, grandchildren, great-grandchildren, and so on, including adopted children. Also called issue or lineal descendants.

As a noun, a gift of property made by will; as a verb, to give property by will. A person who receives property under a will is a devisee. Traditionally a legatee received personal property and a devisee received real estate, but California uses "devise" and "devisee" for both (Prob. Code 32, 34).

Electronic records and accounts a person owns or controls, such as email, social media, photos, online financial accounts, and cryptocurrency. California law lets a user authorize a trustee, personal representative, or agent to access these accounts through an online tool or estate planning documents (Prob. Code 870 to 884).

The court order that formally releases a personal representative from further duties once the estate has been fully distributed. In California, this is usually requested with Judicial Council form DE-295 after receipts from the beneficiaries are filed.

A formal written refusal to accept an inheritance or gift. The property then passes as if the person who disclaimed had died first, under the will, trust, beneficiary form, or intestacy rules. To avoid gift tax, a disclaimer generally must be made within nine months of the death, before accepting any benefit, and without directing who receives the property (IRC 2518). California's rules are in Prob. Code 275 to 295. Also called a renunciation.

A trust that receives property only if a beneficiary, usually a surviving spouse, disclaims it. This lets the survivor decide after the first death whether to move assets into a protected trust, often for estate tax planning. The survivor can still benefit from the trust in limited ways but cannot control who ultimately receives the disclaimed assets. Strict deadlines and requirements apply. See also Disclaimer.

The freedom to make a judgment call. A trustee with discretion over distributions decides when and how much to give a beneficiary, but must still act in good faith, reasonably, and consistent with the trust's purposes, even if the trust says the trustee's discretion is "sole" or "absolute" (Prob. Code 16080, 16081).

To intentionally leave someone out of a will or trust, usually by stating that they are to receive nothing. A disinheritance clause can help show the omission was deliberate.

A person who is presumed to have obtained a gift through fraud or undue influence, so the gift fails unless they prove otherwise. Under California law, this generally includes the person who drafted the document, a care custodian of a dependent adult, and certain people related to or working for them. The presumption does not apply to the transferor's relatives, or if an independent attorney reviews the gift and signs a certificate of independent review (Prob. Code 21380 to 21392).

A payment of money or a transfer of property from an estate or trust to a person entitled to receive it, who is called the distributee. See also Preliminary Distribution, Petition for Final Distribution.

A person's true, permanent home, where they intend to return. Domicile at death determines which state's probate court and inheritance laws generally apply, and in California, which county the probate is filed in. See also Venue.

An irrevocable trust designed to last for multiple generations, keeping assets in trust for descendants and, with proper allocation of GST exemption, free of estate and generation-skipping transfer taxes at each generation. California limits how long most trusts can last under its rule against perpetuities (generally 90 years under Prob. Code 21205), so some families establish dynasty trusts in other states.

In many states, a surviving spouse's right to claim a fixed percentage of the deceased spouse's estate no matter what the will says. California does not have an elective share. Instead, a California spouse is protected by owning half of the community property and by other rights, such as the omitted spouse rules, family allowance, and probate homestead. See also Community Property, Omitted Spouse or Child.

A claim or restriction against property, such as a mortgage, lien, or easement.

The value of an asset after subtracting any loans, liens, or other debts secured by it. For example, a $900,000 home with a $300,000 mortgage has $600,000 in equity. Also called net value.

The transfer of a decedent's property to the state when no heirs or beneficiaries can be found. California searches a broad range of relatives, including some in-laws, before property escheats (Prob. Code 6402, 6800).

Everything a person owns, or owned at death, less what is owed. The word is used in different ways: the probate estate means only the assets that go through probate, while the gross estate for tax purposes can include trust assets, life insurance, and retirement accounts. See also Gross Estate and Taxable Estate, Probate Estate.

The total value a person can give away during life and at death combined before owing federal gift or estate tax. For 2026, it is $15,000,000 per person, adjusted for inflation in later years. Technically, the law grants a tax credit (the unified credit) equal to the tax on that amount, so transfers up to that value are tax-free. Also called the applicable exclusion amount or basic exclusion amount. See also Portability (DSUE).

Learn more: OBBBA estate tax changes

The main returns that may be required after a death: the decedent's final individual income tax returns (federal Form 1040 and California Form 540) for the year of death; fiduciary income tax returns for the estate or trust (federal Form 1041 and California Form 541) for income earned after death; and the federal estate tax return (Form 706) if the estate exceeds the exemption or to elect portability. Lifetime gifts above the annual exclusion are reported on Form 709. Estates and trusts generally need their own taxpayer identification number (EIN).

The process of deciding, and putting in writing, how your property will be managed if you become incapacitated and who will receive it after you die. It usually involves a will, a trust, powers of attorney, a health care directive, and beneficiary designations.

Learn more: Estate planning checklist: 21 steps

A tax on the transfer of property at death. The federal estate tax is figured on the value of everything the decedent owned or controlled at death, minus debts, expenses, and gifts to a spouse or charity, plus taxable lifetime gifts. Only estates above the exemption amount ($15,000,000 per person in 2026) owe tax, at a top rate of 40%. California does not have a state estate tax, although some other states do. Also called a death tax or transfer tax.

Learn more: California estate tax calculator

Latin for "from one side." An ex parte request is made to the court by one party, often on short notice, without a full hearing involving all parties. California probate courts handle some routine matters this way, such as final discharge.

The price an asset would bring in a sale where neither buyer nor seller is forced to act and both have reasonable knowledge of the facts. It is the standard used for estate tax returns, probate inventories, and basis adjustments.

A court-ordered payment from a probate estate to support the surviving spouse, minor children, and certain dependent family members while the estate is being administered (Prob. Code 6540 to 6545). The allowance has priority over most creditors' claims.

A partnership that family members form to hold family assets, such as investments, real estate, or a business. Parents typically keep control as general partners and give or sell limited partnership interests to children over time. An FLP can centralize management and, in some cases, support valuation discounts for gift and estate tax purposes. The IRS closely reviews FLPs, so they must have a genuine purpose and be run as a real business.

A person or institution legally required to act in someone else's best interest. Trustees, personal representatives, conservators, guardians, and agents are all fiduciaries. Their fiduciary duties include loyalty, good faith, care, avoiding conflicts of interest, treating beneficiaries impartially, investing prudently, and keeping beneficiaries informed (Prob. Code 16000 to 16015, 16060). See also Self-Dealing.

Taking, hiding, or keeping the property of a person age 65 or older (or a dependent adult) for a wrongful use or with intent to defraud, including through undue influence (Welf. and Inst. Code 15610.30). Remedies can include recovery of the property, attorney fees, and, if the property was taken in bad faith, double damages (Prob. Code 859).

Transferring assets into a trust, usually by retitling them in the trustee's name or naming the trust as beneficiary. A living trust only avoids probate for assets actually funded into it. A trust that holds no assets is unfunded, which usually means the assets will have to go through probate. See also Assignment, Heggstad Petition.

Learn more: Trust funding calculator

A power of appointment that lets the holder appoint property to almost anyone, including the holder themself, the holder's estate, or the holder's creditors. Because the holder has that much control, property subject to a general power is treated as the holder's own for federal estate tax purposes and is counted in the holder's taxable estate. A power that can be exercised only in favor of people other than the holder, the holder's estate, and their creditors is a special, or limited, power of appointment instead. California's rules on powers of appointment are in Probate Code sections 600 to 695.

A federal tax on gifts or inheritances that skip a generation, such as transfers to grandchildren, either directly or through a trust. It applies in addition to gift or estate tax. Each person has a GST exemption equal to the federal estate tax exemption ($15,000,000 in 2026), and transfers above that are taxed at a flat 40% rate. The exemption must be properly allocated, sometimes on a tax return, to protect a trust. Unlike the estate tax exemption, the GST exemption is not portable between spouses.

A transfer of property to another person or organization without receiving full value in return. The person making the gift is the donor, and the person receiving it is the donee. Some gifts are taxable and some are not. See also Annual Gift Tax Exclusion, Gift Tax.

A federal tax on lifetime gifts. Most people never pay it because of the annual exclusion ($19,000 per recipient in 2026) and the lifetime exemption ($15,000,000 per person in 2026, shared with the estate tax). Gifts to a U.S. citizen spouse, gifts to charity, and tuition or medical bills paid directly to the provider are not counted.

A gift above these exclusions is a taxable gift and must be reported on IRS Form 709, even if no tax is due. Tax is owed only after total lifetime taxable gifts pass the lifetime exemption, at a top rate of 40%. The donor generally pays the tax. California has no state gift tax.

The deed most commonly used to transfer real estate in California. By using the word "grant," the seller implicitly promises that they have not already transferred the property to someone else and that they have not placed undisclosed liens on it (Civ. Code 1113). Grant deeds are often used to transfer a home into a living trust. See also Deed, Quitclaim Deed.

An irrevocable trust that pays the creator a fixed annual amount for a set number of years. At the end of the term, whatever is left, including growth above an IRS-set interest rate, passes to the chosen beneficiaries with little or no gift tax. If the creator dies before the term ends, much or all of the trust is pulled back into their taxable estate.

A trust whose income is taxed to the person who created it, as if they still owned the assets, because of rights or powers the creator keeps. Every revocable living trust is a grantor trust. An intentionally defective grantor trust (IDGT) is an irrevocable trust deliberately designed so the creator pays its income tax while the assets are kept out of the creator's estate, which lets the trust grow faster for the beneficiaries. Being a grantor trust for income tax does not by itself mean the creator can revoke the trust or use its assets.

Two measures used for the federal estate tax. The gross estate is the fair market value of everything a person owns or controls at death, including real estate, accounts, retirement plans, business interests, life insurance the decedent owned, and revocable trust assets. The taxable estate (also called the net estate) is the gross estate minus allowable deductions, such as debts, funeral and administration expenses, and gifts to a surviving spouse or charity.

A person appointed by a court to represent the interests of a minor, an incapacitated person, or an unborn or unknown beneficiary in a specific case (Prob. Code 1003).

A court case in which a judge appoints a guardian to care for a minor child (guardian of the person), manage a minor's property (guardian of the estate), or both. The child is called the ward. Parents can nominate a guardian in a will or other signed writing, and the court gives that choice strong weight (Prob. Code 1500, 1502). In California, guardianships are only for minors; adults who need help are served by a conservator. See also Conservatorship.

A court session, held before a judge without a jury, where the parties present their positions. Many probate petitions are decided at a short hearing, and in some California courts petitions can be approved in advance without an appearance if no one objects.

A California court petition asking the court to confirm that an asset belongs to a trust even though it was never formally retitled, based on a written declaration or other evidence that the settlor intended it to be trust property. It is filed under Prob. Code 850 and named after the case Estate of Heggstad. It can avoid a probate for an asset left out of a living trust.

A person entitled by law to inherit from someone who died without a will (Prob. Code 44). The term is often used loosely to mean anyone who inherits. See also Intestate Succession.

A signed form that allows doctors and hospitals to share your health information with the people you name, under the federal privacy law known as HIPAA. It does not give anyone authority to make medical decisions. It is often used so that a trustee or agent can obtain medical records needed to confirm incapacity or to stay informed. See also Advance Health Care Directive.

A will written by hand. In California, it is valid without witnesses if the signature and the important provisions are in the will maker's own handwriting (Prob. Code 6111). Handwritten wills often lead to disputes about meaning, dates, and validity.

In California, this term can mean several different protections for a home: (1) a creditor exemption that protects some of a homeowner's equity from collection of debts (Code Civ. Proc. 704.710 to 704.850); (2) the homeowners' property tax exemption, which reduces the assessed value of an owner-occupied home by $7,000; and (3) a probate homestead, which a court may set aside for a surviving spouse or minor children to live in for a limited time after a death (Prob. Code 6520 to 6528). Rules and amounts differ in other states.

In trust accounting, earnings generated by trust assets, such as interest, dividends, and rent, as opposed to the assets themselves (principal). California's Uniform Fiduciary Income and Principal Act governs how receipts and expenses are divided between income and principal unless the trust says otherwise (Prob. Code 16320 and following). Trust accounting income is not the same as taxable income. See also Principal.

A simplified form of probate in which the personal representative can take many actions, such as selling property or paying claims, without first getting court approval. In California, this is authorized under the Independent Administration of Estates Act (Prob. Code 10400 and following). Some actions still require advance notice to beneficiaries using a Notice of Proposed Action (form DE-165), and certain actions always require court approval. Authority may be full or limited.

A tax-advantaged retirement savings account. With a traditional IRA, taxes are generally deferred until money is withdrawn; with a Roth IRA, qualified withdrawals are tax-free. An IRA passes by beneficiary designation, not by will. See also Inherited IRA (10-Year Rule), Required Minimum Distribution (RMD).

A tax charged by some states on the people who receive property from a decedent, with the rate often depending on the recipient's relationship to the decedent. California has no inheritance tax and no probate tax, but a California resident inheriting from someone in a state that has an inheritance tax may still be affected. Inheritances are generally not subject to federal income tax.

A retirement account received by a beneficiary after the owner's death. Under current federal law, most non-spouse beneficiaries must empty the account by the end of the 10th year after the owner's death, and if the owner had already started required distributions, the beneficiary must also take annual distributions during those years. Eligible designated beneficiaries get more flexible payout options: a surviving spouse, the owner's minor child (until age 21), a disabled or chronically ill person, and anyone not more than 10 years younger than the owner. Naming a trust as beneficiary requires careful drafting. See also Conduit and Accumulation Trusts.

Someone with a legal stake in a probate or trust matter, such as an heir, beneficiary, creditor, or fiduciary, whose rights may be affected by the case (Prob. Code 48). In general, only an interested person has standing to file a petition, receive notice, or object.

Dying intestate means dying without a valid will. Intestate succession is the set of rules that decides who inherits from someone who dies without a valid will. In California, the surviving spouse or registered domestic partner receives all of the decedent's community and quasi-community property, plus a portion of separate property that depends on which other relatives survive. Remaining property passes to children and other descendants, then to parents, then to siblings and more distant relatives (Prob. Code 6400 to 6414). The court applies these rules, not what the decedent might have wanted.

A complete list of a decedent's assets and their values. In a California probate, the personal representative files an Inventory and Appraisal (form DE-160) with the court, generally within four months after letters are issued (Prob. Code 8800). Trustees prepare inventories too, but they are not filed with the court. See also Appraisal, Probate Referee.

An irrevocable trust set up to own life insurance so the policy proceeds are not counted in the insured person's taxable estate. The trust document controls how the proceeds are used and when beneficiaries receive them. If an existing policy is transferred into the trust and the insured dies within three years, the proceeds are pulled back into the estate (IRC 2035). Once signed, the trust generally cannot be changed by the creator. See also Crummey Trust.

A trust that the creator cannot cancel or change on their own once it is signed or becomes irrevocable at death. In limited situations, California law allows an irrevocable trust to be modified or ended with beneficiary consent or court approval (Prob. Code 15403, 15409). In California, a trust is revocable unless the document expressly says it is irrevocable (Prob. Code 15400).

Ownership of the same property by two or more people. In California, the common forms are joint tenancy, tenancy in common, community property, and community property with right of survivorship. California does not recognize tenancy by the entirety, a form of married-couple ownership used in some other states. See also Joint Tenancy, Tenants in Common.

A form of co-ownership with a right of survivorship: when one owner dies, that owner's share automatically passes to the surviving owners without probate. The survivor typically records an affidavit of death of joint tenant to clear title. Joint tenancy overrides a will and can lead to unintended results or lost tax benefits for married couples, so it should be coordinated with the rest of the plan. See also Affidavit of Death, Community Property with Right of Survivorship.

A single living trust created by two people, usually a married couple, to hold their combined assets. California joint trusts often keep track of each spouse's community and separate property inside the trust. Compare Separate Trust.

The failure of a gift in a will or trust because the beneficiary died before the person who made the gift. California's anti-lapse statute saves certain gifts to relatives by passing them to the deceased beneficiary's descendants, unless the document says otherwise (Prob. Code 21110).

Older terms for people who take property under a will. In traditional usage, a legatee received personal property, such as money or household goods, and a devisee received real property. California does not use the distinction: the Probate Code uses “devise” for any disposition of real or personal property made by a will, and “devisee” for any person designated in a will to receive one (Prob. Code sections 32 and 34). You will still see “legatee” in older wills and in documents from other states, where it means a beneficiary under the will.

The court document that proves a person's authority to act for an estate, a minor, or a conservatee. In probate, an executor receives letters testamentary, an administrator receives letters of administration, and an administrator with will annexed receives letters of administration with will annexed (form DE-150 for all three). Banks, title companies, and others usually ask for a recently certified copy. See also Certified Copy.

The right to use and live on property for the rest of one's life. The holder (life tenant) pays ordinary expenses and keeps the property in good repair. When the life tenant dies, the property passes automatically to the remainder beneficiaries (remaindermen). The life tenant can sell or mortgage only their own life interest; selling the whole property generally requires everyone's agreement. Keeping a life estate in property you give away usually means the property is still included in your estate for estate tax purposes. See also Remainder Interest.

A California conservatorship for an adult with a developmental disability. The limited conservator has only the specific powers the court grants, and the conservatee keeps all other rights, to encourage as much independence as possible (Prob. Code 1801(d), 1828.5).

A trust you create while you are alive, usually naming yourself as trustee, to hold your property during your lifetime and pass it to your beneficiaries afterward. A successor trustee takes over if you become incapacitated or die. Assets properly transferred into the trust avoid probate and conservatorship. A living trust is usually revocable, meaning you can change or cancel it; in California, a trust is revocable unless the document expressly says it is irrevocable (Prob. Code 15400). It does not, by itself, reduce taxes or protect assets from your own creditors. Also called a revocable trust, revocable living trust, or inter vivos trust (Latin for "between the living"). See also Funding, Pour-Over Will.

Learn more: Will vs. trust: the difference

A California conservatorship under the Lanterman-Petris-Short Act for an adult who is gravely disabled because of a serious mental health disorder or a severe substance use disorder (which includes chronic alcoholism). It can authorize involuntary mental health treatment and placement. It is handled through the county and is separate from a probate conservatorship (Welf. and Inst. Code 5350 and following).

A federal tax rule that allows unlimited gifts and inheritances between spouses without gift or estate tax, as long as the receiving spouse is a U.S. citizen and the transfer meets certain requirements. If the surviving spouse is not a U.S. citizen, the deduction at death is generally available only through a qualified domestic trust (QDOT). The marital deduction delays tax until the surviving spouse's death rather than eliminating it. See also QDOT, QTIP Trust.

A written agreement between spouses or future spouses about how their property will be owned. A premarital (prenuptial) agreement is signed before marriage (Fam. Code 1600 and following). A transmutation is an agreement during marriage that changes property from community to separate, or the reverse, and must be made in writing with an express statement of the change (Fam. Code 852). These agreements can significantly affect an estate plan.

California's version of Medicaid, the joint federal and state program that pays for medical care, including long-term nursing care, for people with limited income and resources. Eligibility rules, including asset limits, change periodically, so current rules should be checked. After a Medi-Cal member age 55 or older dies, the state may seek repayment for certain benefits paid (estate recovery). California limits recovery to assets in the probate estate and allows hardship waivers (Welf. and Inst. Code 14009.5). See also Medicare.

The federal health insurance program for people age 65 or over, plus some younger people who have disabilities or permanent kidney failure. Medicare generally does not pay for long-term custodial nursing home care.

A person under the age of majority. In California, a minor is anyone under 18. Minors cannot directly hold or manage significant property, so a guardian, custodian, or trust is used instead.

A short written summary, prepared by the court clerk, of what happened at a hearing and any rulings made.

A decedent's closest living relatives by blood (kindred), as determined under California's intestate succession rules. See also Consanguinity, Heir.

A provision in a will or trust stating that a beneficiary who challenges the document loses their gift. In California, these clauses are enforced only against (1) a direct contest brought without probable cause, (2) a challenge to a transfer based on a claim that the property was not the transferor's, and (3) a creditor's claim, but only for categories (2) and (3) if the document expressly says so (Prob. Code 21310 to 21315). Probable cause means the contestant had facts that would lead a reasonable person to believe there was a reasonable likelihood the contest would succeed (Prob. Code 21311(b)). Also called an in terrorem clause.

For U.S. tax purposes, someone who is not a U.S. citizen and does not live permanently in the United States. A non-resident alien may owe U.S. estate tax on U.S. property, such as real estate or U.S. stock, with a much smaller exemption ($60,000) than U.S. citizens and residents. Probate may also be required in the state where the property is located.

Formal information given to a person about a court filing, hearing, or proposed action, so they have a chance to respond. Probate law sets specific notice requirements, including who must receive notice, how it is given, and how far in advance.

The notice that starts a California probate (form DE-121). It must be mailed to heirs and named beneficiaries at least 15 days before the hearing and published in a local newspaper three times before the hearing (Prob. Code 8110, 8120 to 8124). It tells interested persons and creditors that a probate has been filed and how to object or file a claim.

Under independent administration, the form (DE-165) the personal representative sends to interested persons before taking certain significant actions without court approval, such as selling real estate. Recipients have at least 15 days to object; if no one objects, the action can proceed (Prob. Code 10580 to 10592). See also Independent Administration.

A spouse or child left out of a will or trust because they married the decedent or were born or adopted after the document was signed. "Pretermitted heir" is the older term. They are generally entitled to a share of the estate unless the omission was intentional or they were otherwise provided for (Prob. Code 21600 to 21623).

The way some property passes at death automatically because of how it is titled or because of a statute, rather than under a will. Joint tenancy property is a common example.

An order directing someone to come to court and explain why the court should not take a particular action, such as imposing sanctions for failing to file a required document.

A bank account, certificate of deposit, or similar account that names who receives the funds when the owner dies. The beneficiary has no rights while the owner is alive and collects the account directly, without probate, by providing a death certificate. Also called a Totten trust account. See also Beneficiary Designation, Transfer-on-Death (TOD).

Relating to money. A pecuniary gift is a gift of a fixed dollar amount.

A method of dividing property among descendants so that everyone in the same generation receives an equal share. Shares are figured at the first generation with a living member; the shares of deceased members of that generation are then combined and divided equally among the next generation, and so on. In California, this method applies when a will or trust specifically calls for it (Prob. Code 247). Compare By Representation, Per Stirpes.

All property other than real estate. Tangible personal property means physical, movable belongings, such as furniture, cars, art, jewelry, and personal effects like clothing. Intangible personal property includes bank accounts, stocks, business interests, and patents. See also Personal Property Memorandum.

Latin for "by the roots." A method of dividing property among descendants in which each child's family line (branch) gets an equal share. If a child has died, that child's share passes down to the child's own descendants. Under California law, "per stirpes," "by representation," and "by right of representation" all mean this method in documents signed on or after January 1, 1986, unless the document says otherwise (Prob. Code 246). Compare Per Capita at Each Generation.

A separate written list, referred to in a will, that directs who receives certain tangible personal property, such as jewelry, furniture, or keepsakes. In California, it can be changed without re-signing the will, but each item must be worth no more than $5,000 and all items together no more than $25,000 (Prob. Code 6132).

The person the court appoints to manage a decedent's probate estate (Prob. Code 58). There are several kinds:

1. Executor: the person named in the will. Once appointed, the executor receives letters testamentary.

2. Administrator: the person the court appoints when there is no will. California law sets an order of priority, starting with the surviving spouse or domestic partner and then children (Prob. Code 8461).

3. Administrator with will annexed: the person appointed when there is a will but no named executor is able or willing to serve.

Each has full authority over the whole estate, unlike a special administrator. Older documents may use "executrix" or "administratrix" for a woman. See also Letters, Public Administrator, Special Administrator.

A formal written request asking the court to take a specific action, such as appointing a personal representative or approving a sale. The person who files it is the petitioner; someone who opposes it is usually called an objector or respondent. The main California form to open a probate is the Petition for Probate (DE-111).

A trust that sets aside money for the care of a pet during the animal's lifetime. California law expressly allows these trusts and lets the court enforce them (Prob. Code 15212).

The request the personal representative files to close a probate. It typically reports on the administration, includes or waives an accounting, requests approval of fees, and proposes how the remaining assets will be distributed (Prob. Code 11640). After the court signs the order, the representative distributes the assets, files receipts, and requests discharge. See also Accounting, Discharge.

A petition filed under Prob. Code 17200 asking the court to decide a question about a trust, such as interpreting its terms, approving a trustee's accounting, removing a trustee, or settling a dispute among beneficiaries. It is the main way to bring trust issues before a California court.

Physician Orders for Life-Sustaining Treatment: a medical order, signed by the patient (or their agent) and a doctor, nurse practitioner, or physician assistant, that tells emergency and medical staff what life-sustaining treatment a seriously ill person wants. Unlike an advance health care directive, it is a medical order that takes effect immediately. See also Advance Health Care Directive.

The ability of a surviving spouse to use the deceased spouse's unused federal estate and gift tax exemption, called the deceased spousal unused exclusion (DSUE) amount. Portability must be elected on a timely filed federal estate tax return (Form 706) for the first spouse, even if no tax is owed. The IRS allows a late election in many cases for up to five years after death. See also Estate and Gift Tax Exemption.

A will, used together with a living trust, that directs any assets left outside the trust at death to be transferred into the trust. Those assets may still have to go through probate first. In California, a court petition (often called a Heggstad petition) or a small estate procedure can sometimes move such assets into the trust without a full probate.

A power, given in a will or trust, that lets a person (the holder) decide who will receive certain property. A general power of appointment lets the holder direct property to anyone, including themselves, their estate, or their creditors; because of that control, the property is generally included in the holder's taxable estate, which is sometimes used on purpose to obtain a step-up in basis. A limited (or special) power restricts who can receive the property, for example only the creator's descendants, and generally does not cause estate inclusion.

A document in which one person (the principal) gives another (the agent) authority to act for them in financial and legal matters. A durable power of attorney stays in effect if the principal becomes incapacitated; most estate planning powers of attorney are durable. It can take effect immediately or only upon incapacity (a "springing" power). Every power of attorney ends at the principal's death, when the will, trust, or probate process takes over. California offers an optional statutory form (Prob. Code 4401). See also Agent (Attorney-in-Fact).

A husband or wife who passed away first, while still married to the decedent. California has special rules for property the decedent inherited from a predeceased spouse that may send part of it to that spouse's relatives if the decedent dies without a will and without a spouse or descendants (Prob. Code 59, 6402.5).

A California form (BOE-502-A) that the buyer or new owner files with the county recorder along with a deed, so the county assessor can decide whether the transfer triggers a property tax reassessment. Transfers resulting from a death also require a separate Change in Ownership Statement. See also Change in Ownership Statement (Death of Real Property Owner), Proposition 19.

A distribution of part of an estate to beneficiaries before the probate is closed. In California, it requires court approval, or, under independent administration, advance notice to interested persons, and is allowed only if it will not harm creditors or the estate (Prob. Code 10520, 11620 to 11624).

The assets held in a trust, such as cash, investments, and real estate, as opposed to the income those assets earn. Also called corpus. In a power of attorney, "principal" has a different meaning: the person who gives the agent authority. See also Income.

The court-supervised process of settling a deceased person's estate. In California, probate generally involves proving the will (if there is one), appointing a personal representative, notifying heirs, beneficiaries, and creditors, taking an inventory, paying valid debts and taxes, and distributing what remains with court approval. Only assets that do not pass another way, such as through a trust, joint tenancy, or beneficiary designation, are subject to probate. A straightforward California probate commonly takes a year or more, and court files are public. Smaller estates may qualify for simpler procedures. Also called estate administration. See also Probate Estate, Summary Probate.

Learn more: How to avoid probate in California; Do I need probate in California?

The assets that must go through probate. These are generally assets the decedent owned in their own name alone that do not pass automatically to someone else. It usually does not include joint tenancy property, accounts or policies with a living named beneficiary, or assets held in a trust. If a trust or beneficiary designation fails, those assets may end up in the probate estate. See also Gross Estate and Taxable Estate.

An independent appraiser appointed by the California State Controller who values non-cash assets, such as real estate and stocks, in probate, conservatorship, and guardianship cases. The referee's fee is paid from the estate and is set by statute (Prob. Code 400 and following, 8960).

A document, signed under penalty of perjury, showing who served court papers or notice, on whom, how, and when. California probate uses several Judicial Council forms for this purpose.

A California constitutional amendment, effective February 16, 2021, that narrowed the property tax break for transfers between parents and children. A child (or a grandchild, in limited cases) can keep the parent's lower property tax base only for the parent's family home, and only if the child moves in as their primary residence within one year and files for the homeowners' exemption. The exclusion is limited to the existing assessed value plus $1 million, adjusted for inflation every two years ($1,044,586 for transfers from February 16, 2025 through February 15, 2027). Family farms qualify under similar rules. A claim form must be filed with the county assessor. Other inherited property is generally reassessed to market value.

Learn more: Prop 19 calculator

The standard fiduciaries must follow when investing. It requires them to look at the portfolio as a whole, diversify, weigh risk and return, and keep costs reasonable. California's version is in Prob. Code 16045 to 16054. It replaced the older "prudent man rule," which judged each investment on its own.

A county official who handles the estate of a person who died with no one willing or qualified to serve as personal representative, or when the estate is at risk and no one has been appointed (Prob. Code 7600 and following).

A government or court record that anyone can inspect. California probate files, including wills, inventories, and accountings, are generally public records, while a trust administered outside court usually remains private.

A special trust that allows property left to a surviving spouse who is not a U.S. citizen to qualify for the federal estate tax marital deduction. At least one trustee must be a U.S. citizen or a U.S. bank, and estate tax may be due when principal is distributed or when the surviving spouse dies.

A trust that gives a surviving spouse all of the trust income at least once a year for life, while letting the first spouse to die decide who receives the remaining assets afterward. If the executor makes a QTIP election on the federal estate tax return, the trust qualifies for the marital deduction, so estate tax is deferred until the surviving spouse's death. It is commonly used in blended families. Also called a marital trust. See also A-B Trust and A-B-C Trust, Clayton Election, Marital Deduction.

An irrevocable trust that holds a home for a set number of years while the person who created it continues to live there. At the end of the term, the home passes to the beneficiaries, often children, at a reduced gift tax value. If the creator dies before the term ends, the home is pulled back into their estate. A creator who wants to stay after the term usually must pay fair rent.

A trust that meets IRS requirements to own stock in an S corporation (a corporation taxed under Subchapter S of the Internal Revenue Code, so income passes through to shareholders) without ending the company's S status. It must have only one current beneficiary, who receives all income and must elect QSST treatment. Some other trusts, such as grantor trusts and electing small business trusts, can also hold S corporation stock.

Property acquired by a spouse while living outside California that would have been community property if acquired while living here. When the acquiring spouse dies domiciled in California, it is generally treated like community property for inheritance purposes (Prob. Code 66, 101). See also Community Property.

A deed that transfers whatever interest the signer has in a property, if any, without promising that the title is good. It is often used between family members or to clear up title issues. Compare Grant Deed.

Land and anything permanently attached to it, such as homes and buildings. Also called real estate.

The right to receive property after an earlier interest ends, such as after a life estate, a set number of years, or a life beneficiary's lifetime interest in a trust. The person who holds it is called a remainder beneficiary or remainderman.

The minimum amount that must be withdrawn each year from a traditional IRA or employer retirement plan once the owner reaches the required beginning date. That date is generally April 1 of the year after the owner turns 73 (75 for people born in 1960 or later), and some workers in employer plans may delay until they retire. The amount is based on the prior year-end balance and an IRS life expectancy table. Missing an RMD triggers a 25% excise tax on the shortfall, reduced to 10% if corrected promptly. Roth IRAs have no required distributions during the owner's lifetime. See also Inherited IRA.

Everything left in an estate or trust after debts, expenses, taxes, and specific gifts have been paid or distributed. A will or trust usually includes a residuary clause stating who receives it; that person or organization is the residuary beneficiary (in older wills, the residuary legatee).

A California deed that names who will receive real property when the owner dies, without probate. The owner keeps full ownership and can revoke it at any time. It must be signed, notarized, signed by two witnesses, and recorded within 60 days after signing. After the death, the beneficiary must take additional steps, including notifying heirs and recording an affidavit. The law allowing these deeds is scheduled to sunset on January 1, 2032, unless extended (Prob. Code 5600 and following).

A fiduciary using their position for personal benefit, such as buying estate property for themselves or lending trust funds to their own business. California generally prohibits this unless the document, the beneficiaries, or the court allow it (Prob. Code 16004).

A will signed with a witness statement that lets a court accept it without tracking down the witnesses to testify. Many states use a separate notarized affidavit for this. California has no separate self-proving affidavit; instead, a will with a proper attestation clause, or a written declaration of a subscribing witness (form DE-131), can generally be used to prove the will if no one contests it (Prob. Code 8220). See also Attestation Clause.

In California, property a spouse owned before marriage, property received during marriage by gift or inheritance, income and profits from separate property, and property acquired after the date of separation (Fam. Code 770, 771). A spouse can leave all of their separate property as they wish. Property can change character if spouses sign a written agreement (a transmutation). Compare Community Property.

A trust created by one person for their own assets. A married couple may have two separate trusts rather than one joint trust. Also called an individual trust. Compare Joint Trust.

The person who creates a trust. A married couple who create a joint trust are co-settlors. Also called a grantor, trustor, or trustmaker. "Settlor" is the term the California Probate Code uses.

A sworn statement that lets a successor collect a decedent's personal property, such as bank accounts, without probate when the total probate estate is no more than $208,850 (for deaths on or after April 1, 2025). It can be used 40 days after death and is presented to the bank or other holder rather than filed with the court (Prob. Code 13100 to 13116). Also called a declaration for collection of personal property. See also Summary Probate.

A person the court appoints on a temporary or limited basis to protect an estate, usually in an emergency or while a dispute delays the appointment of a regular personal representative (Prob. Code 8540 and following).

A trust that holds money for a person with a disability without disqualifying them from needs-based public benefits such as Supplemental Security Income (SSI) and Medi-Cal. The trustee uses the funds for things those benefits do not cover. A third-party trust is funded by family or others and has no payback requirement. A first-party trust holds the beneficiary's own money, such as a lawsuit settlement, and generally must repay Medi-Cal from any remaining funds at the beneficiary's death. Also called a supplemental needs trust.

A gift in a will or trust of a particular item or amount to a named person or charity, such as a piece of jewelry, a vehicle, or a certain property. If the item is no longer owned at death, the gift may fail, subject to California's statutory exceptions. Also called a specific bequest or specific distribution. See also Ademption.

A trust with a spendthrift clause, which prevents a beneficiary from selling, pledging, or giving away future trust payments and generally keeps the beneficiary's creditors from reaching those payments before they are distributed (Prob. Code 15300, 15301). California allows certain exceptions, including claims for child or spousal support and some government claims. A spendthrift clause does not protect assets the creator places in a trust for their own benefit.

A gift in which the interests in the same property are split between a charity and a noncharity beneficiary, so that one side receives the income or use of the property for a period and the other side receives what remains. A charitable remainder trust, which pays an individual first and a charity last, and a charitable lead trust, which does the reverse, are the standard examples. A charitable deduction for a split interest gift is generally allowed only if the gift is made in a form the Internal Revenue Code prescribes, such as one of those trusts or a pooled income fund.

A California court petition (form DE-221) asking the court to confirm that property belongs to, or passes to, the surviving spouse or registered domestic partner without a full probate (Prob. Code 13650). There is no dollar limit. It is often used when a home or account was held in one spouse's name but passes to the survivor.

A person's husband or wife. Under California law, a registered domestic partner generally has the same rights as a spouse in estate and probate matters (Prob. Code 37). The surviving spouse is the spouse still living after the other dies. See also Predeceased Spouse, Survival Requirement (120-Hour Rule).

A report filed by a California personal representative when an estate cannot be closed on time. If the estate has not been closed within one year after letters are issued (18 months if a federal estate tax return is required), the representative must either petition for final distribution or report on the status of the estate and explain why it is not ready to close (Prob. Code 12200, 12201).

In a California probate, the personal representative and the attorney are each entitled to a fee set by statute, based on the value of the estate: 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, 1% of the next $9 million, 0.5% of the next $15 million, and a reasonable amount set by the court above $25 million (Prob. Code 10800, 10810). For an estate valued at $500,000, that is $13,000 each. The court may award additional extraordinary fees for unusual work, such as selling real estate, litigation, or tax matters (Prob. Code 10801, 10811). Fees are paid from the estate with court approval.

Learn more: California probate fee calculator

A fill-in-the-blank will form written into California law (Prob. Code 6240). It is valid if properly signed and witnessed, but it offers limited choices and may not fit many families' needs.

The reset of an asset's tax basis to its fair market value as of the owner's death (or six months later if the estate elects alternate valuation). Because most assets go up in value, this is usually called a step-up in basis, and it can greatly reduce capital gains tax if heirs later sell. In California and other community property states, when one spouse dies both halves of community property generally receive a new basis, not just the deceased spouse's half (IRC 1014(b)(6)). Retirement accounts and certain other assets do not receive a basis adjustment. Also called a basis adjustment or stepped-up basis.

The person or institution named in a trust to step in as trustee if the current trustee passes away, steps down, loses capacity, or can no longer serve for any other reason.

Simplified ways to transfer a decedent's property without a full probate when the estate is small or passes to a surviving spouse. In California, the main options are:

1. Small estate affidavit: for personal property when the decedent's probate assets total no more than $208,850, available 40 days after death (Prob. Code 13100).

2. Petition to determine succession to real property: for real property when the total probate estate is no more than $208,850, or when the property is the decedent's primary residence and is worth no more than $750,000 (Prob. Code 13151).

3. Affidavit for real property of small value: for real property worth no more than $69,625, filed six months after death (Prob. Code 13200).

4. Spousal or domestic partner property petition: to confirm or pass property to a surviving spouse or registered domestic partner, with no dollar limit (Prob. Code 13650).

The dollar amounts above apply to deaths on or after April 1, 2025, and are adjusted every three years (Prob. Code 890). Certain assets, such as joint tenancy and trust property, are not counted toward these limits (Prob. Code 13050).

Learn more: California probate threshold

A California rule that, for inheritance without a will, a person who does not survive the decedent by 120 hours is treated as having died first (Prob. Code 6403). It prevents property from passing through two estates when people die close together. Wills and trusts often set their own survival period, and a separate rule applies when the order of death cannot be determined (Prob. Code 220 to 224).

The share of a married couple's joint trust that holds the surviving spouse's own property after the first spouse dies. The survivor usually keeps full control and can change its terms. Also called the A trust. See also A-B Trust and A-B-C Trust.

A form of co-ownership in which each owner holds a separate share that does not pass automatically to the other owners at death. Instead, each owner's share passes under their will or trust, or by intestate succession, which may require probate. In California, co-owners are presumed to be tenants in common unless the deed states otherwise (Civ. Code 686).

Relating to a will or to anything that takes effect only at death. A testamentary disposition is a transfer of property that takes effect at death, usually made by will.

A trust created by a will that comes into existence only after the will maker dies and the will goes through probate. Because it depends on the will, a testamentary trust does not avoid probate.

A person who signs a will. The term is used for anyone regardless of gender; older documents may use "testatrix" for a woman.

Legal ownership of property, and also the document, such as a deed or vehicle certificate, that shows who owns it. How title is held determines whether property passes by will, trust, survivorship, or probate.

A designation that names who will receive an asset when the owner dies, so it passes directly to that person without probate. TOD designations are common for brokerage accounts and securities, and California also allows them for vehicles and, through a revocable transfer on death deed, for real property. The owner keeps full control and can change the designation while alive. See also Payable-on-Death (POD) Account, Revocable Transfer on Death Deed.

A tax charged when property changes hands. In estate planning, this usually refers to federal estate, gift, and generation-skipping transfer taxes. In California real estate, it can also refer to the documentary transfer tax charged by counties and some cities when a deed is recorded; many transfers at death or into a living trust are exempt.

A legal arrangement in which one person or institution (the trustee) holds and manages property for the benefit of others (the beneficiaries), following written instructions from the person who created it. Trusts can be revocable or irrevocable, and can be created during life (living trust) or by a will (testamentary trust).

The trustee's work of managing and distributing a trust after the creator dies or can no longer serve. In California, this generally includes giving a formal notice to beneficiaries and heirs within 60 days after a trust becomes irrevocable (Prob. Code 16061.7), which starts a 120-day period to contest the trust (Prob. Code 16061.8). The trustee then gathers and values assets, pays debts and taxes, keeps records, reports to beneficiaries, and distributes the assets. It usually happens without court supervision, but the court is available if disputes arise. See also Trustee Notification.

Learn more: How much trust administration costs

A written document that changes specific parts of an existing trust without replacing the whole thing. Under California law, the trust can be amended in the way the trust document provides; if the document is silent, a revocable trust can generally be amended by a signed writing delivered to the trustee (Prob. Code 15401, 15402). Notarizing the amendment is common practice and may be required by the trust, but it is not always required by law. See also Trust Restatement.

The signed document that creates a trust and sets out its terms, including any amendments. Also called a trust agreement or declaration of trust. The terms of a trust are the instructions in that document, plus, in some cases, other admissible evidence of the settlor's intent.

A person named in an irrevocable trust, separate from the trustee, with specific powers such as removing and replacing trustees, correcting drafting errors, or updating the trust for changes in the law. The role adds flexibility to a trust that otherwise cannot be changed. California has no statute specifically governing trust protectors, so their powers come from the trust document.

The person or institution responsible for holding, managing, and distributing trust assets according to the trust document and the law. A trustee is a fiduciary.

A document that rewrites an existing trust in full, replacing all of its terms while keeping the original trust in place. Because the trust itself continues, assets already titled in the trust generally do not need to be retitled. A restatement is often clearer than adding many separate amendments. See also Trust Amendment.

The formal notice a California trustee must send to beneficiaries and the settlor's heirs within 60 days after a trust becomes irrevocable, usually because the settlor died (Prob. Code 16061.7). It must include required language warning that a trust contest generally must be filed within 120 days after the notice is served (Prob. Code 16061.8). See also Trust Administration.

Excessive pressure that overcomes a person's free will and causes them to act in a way that is unfair, such as changing a will or trust to benefit the influencer. California courts consider the vulnerability of the victim, the influencer's authority, the tactics used, and the fairness of the result (Welf. and Inst. Code 15610.70). It is a common basis for will and trust contests. See also Disqualified Transferee, Will or Trust Contest.

A uniform law, adopted in California and most other states, that lets property be given to a minor by naming a custodian to manage it. The custodian is a fiduciary. Under California's version, the custodianship generally ends at 18, but a gift or inheritance can specify a later age of up to 25 (Prob. Code 3900, 3920.5). "Custodian" can also mean a bank or brokerage that holds assets for an owner, such as an IRA custodian.

The proper county or court location for a case. In California, a probate is generally filed in the county where the decedent was domiciled at death (Prob. Code 7051). A change of venue moves a case to a different county or courthouse. See also Domicile.

A signed statement, usually under penalty of perjury, confirming that the contents of a court document are true. California probate petitions must be verified.

A legal document stating how a person wants their property distributed after death and naming an executor to carry out those wishes. Parents can also use a will to nominate a guardian for minor children. Assets that pass under a will generally must go through probate unless the estate is small enough for a simplified procedure. A will has no effect until death and can be changed or revoked at any time while the will maker has capacity. A person who dies with a valid will is said to have died testate. Also called a last will and testament.

Learn more: Will vs. trust: the difference

A court challenge to whether a will, trust, or amendment is valid, usually claiming lack of capacity, undue influence, fraud, or improper signing. The person who brings it is the contestant. In California, a will contest can be filed before the will is admitted to probate or within 120 days after (Prob. Code 8250, 8270). A trust contest generally must be filed within 120 days after the trustee's notification is served (Prob. Code 16061.8). See also No Contest Clause, Undue Influence.