The Swier Law Firm Estate Planning and Probate Law FAQs

What Does Life Estate Mean In Estate Planning?

Often used with real estate, this gives one or more people the right to live on and maintain property for the duration of their lives and provides for transfer of this property automatically to a new owner or owners one the life estate individual/s pass away.  This property would transfer outside of probate.

Example Of Life Estate In Regards To Estate Planning

My parents deeded me their house, but have retained a life estate interest.  They can live there or rent it out until they pass, but I am guaranteed to own it at their deaths.

What Does Letters of Testamentary/Letters of Administration Mean In Estate Planning?

The official appointment of the personal representative/executor to probate the estate.  Generally, letters testamentary are issued 
when there is a will and letters of administration are issued when there is no will.

Example of Letters of Testamentary/Letters of Administration In Regards To Estate Planning

When my mom died, we brought her will to the county and they issued me letters testamentary that day.  It was super easy.

 

 What Does Tenants By The Entireties Mean In Estate Planning?

 A special term used by some states when a husband and wife own property together.  No other parties can own a share, this must be between husband and wife.  When one spouse dies, that share will automatically pass to the survivor.  In some cases, holding property this way can provide special protection from creditors.

Example Of Tenants By The Entireties In Regards To Estate Planning

My parents own their house as tenants by the entireties.  They can’t add me to the deed without changing how they own the property.

 What Are Tenants In Common In Estate Planning?

When one owner dies, that share will pass through the estate or in trust as the decedent directed or by state law.  It does not pass to the other owners unless decedent said so in a Will or other dispositive document.

Example Of Tenants In Common In Regards To Estate Planning

My siblings and I all owned an equal share of the family farm.  When my brother died, his share passed through his estate and is now held by his two children because we held the property as tenants in common.

What Does Joint Tenants With Right of Surviorship Mean In Estate Planning?

When one owner dies, that share is automatically transferred to the other joint owners equally.

Example Of Joint Tenants In Regards To Estate Planning

My siblings and I all owned an equal share of the family farm.  When my brother died the three of us still living automatically for his share because we held it as joint tenants with right of survivorship.

 

What Are Joint Owners In Estate Planning?

When two or more people own the same asset. Almost any asset that can have a written record of ownership can have more than one owner.

Example Of Joint Owners In Regards To Estate Planning

My dad made by sister a joint owner on his bank account to help him manage things before he died and she ended up with all of that money despite what his will said.

What Does Intestate Mean In Estate Planning?

To die without a will (opposite is “Testate”)

Example Of Intestate In Regards To Estate Planning

My mom died intestate.  So we had to go to court to have someone appointed as personal representative and her assets must be distributed by following state law.

What Does Intangible Property Mean In Estate Planning?

Assets that is not physical in nature, they generally cannot be touched.  These assets include stocks and bonds (even though these can be represented by physical certificates).  They also include your financial accounts.  Common business intangible assets trademarks, patents, copyrights, goodwill, intellectual property and digital assets (e-mail, blog, photos, etc.).

Example Of Intangible Property In Regards To Estate Planning

The intangible assets in my dad’s estate were the hardest to find and often the hardest to value.

What Does Inheritance Mean In Estate Planning?

Assets received from someone who has died, whether through will, trust, life insurance, retirement plan, deed or other transfer on death assets/accounts.  These assets are specific to the person receiving them and, with special handling, can be retained as an individual asset even if the person is married.  You cannot be forced to accept an inheritance.

Example Of Inheritance In Regards To Estate Planning

My inheritance from my mom’s estate was bigger than I expected.  She had a large insurance policy as well as retirement accounts in addition to her investments and bank accounts.

What Are Issue and Descendants In Estate Planning?

Persons in a generation lower than yours.  This would include your children, grandchildren etc.  Often this term will include children who have been adopted and children who are in utero/en ventra sa mere (conceived, but not yet born).

Example Of Issue and Descendants In Regards To Estate Planning

I currently have six living issue; two children and four grandchildren, one of which was adopted.