Key Estate Planning Terms

A plain‑English glossary of common estate planning terms for California families

Estate planning has its own vocabulary. This glossary defines key California terms you will encounter in your documents and during trust or probate administration. It is general information, not legal, tax, or accounting advice. For guidance about your specific circumstances, contact Pederson Law Offices to speak with one of our qualified attorneys.

 

Core Documents

Will (Last Will and Testament)

A will directs who receives your assets at death and names who will manage your estate. In California, a will alone often requires probate.

Pour‑Over Will

A pour‑over will is used with a revocable living trust. Although this process may still require probate, a pour-over will catches assets left outside the trust and directs them into the trust.

Revocable Living Trust (RLT)

You create a revocable living trust during life. It can be amended, helps avoid probate (if properly funded), provides incapacity management, and sets tailored distribution terms.

Trust Funding

Trust funding is the process of retitling assets to your trust and aligning beneficiary designations. Without proper funding, the trust does not control those assets and may not avoid probate.

Trust Amendment & Restatement

A trust amendment changes part of a trust, while a restatement replaces the entire trust text without requiring you to retitle assets.

Advance Health Care Directive (AHCD)

An Advance Health Care Directive names an agent to make medical decisions if you cannot and allows you to specify your care preferences.

HIPAA Authorization

A HIPAA authorization gives your chosen people timely access to medical information they need to act for you.

Durable Power of Attorney (DPOA)

A Durable Power of Attorney authorizes an agent to handle your financial and legal matters. It can be effective immediately or upon incapacity and covers assets and actions outside your trust.

 

People and Roles

Testator

A testator is the person who signs a will.

Settlor / Grantor / Trustor

The settlor, also called the grantor or trustor, is the person who creates and funds a trust.

Trustee and Successor Trustee

A trustee manages trust assets under the trust and state law. A successor trustee steps in at incapacity, resignation, or death and must act prudently and loyally.

Executor / Administrator / Personal Representative

An executor or administrator, also called a personal representative, is the court‑appointed fiduciary who administers a probate estate.

Beneficiary

A beneficiary is any person or entity entitled to receive property under a will, trust, or beneficiary designation.

Guardian / Conservator

A guardian is a court appointed individual for a minor. A conservator is a court appointed individual for an adult who cannot manage their own personal or financial affairs.

 

Property, Titles, and Transfers

Community Property and Separate Property

In California, most assets acquired during marriage are presumed community property, while premarital assets, gifts, and inheritances are generally presumed separate. This characterization affects control, division, and tax basis upon death or divorce.

Joint Tenancy with Right of Survivorship

Joint tenancy is co‑ownership that passes to the survivor at the first death. It is simple but can create tax, creditor, or fairness issues when used instead of a trust.

Beneficiary & TOD/POD Designations

Beneficiary designations and transfer‑on‑death/payable‑on‑death (TOD/POD) instructions are contract terms on life insurance, retirement plans, and many financial accounts that direct who receives the asset at death. Because these assets pass outside a will or trust, keep the designations coordinated with your plan to avoid conflicts or unequal results.

Grant Deed

A grant deed transfers real property and typically includes limited warranties that the grantor has not previously conveyed the same property and that it is free from encumbrances created by the grantor.

Quitclaim Deed

A quitclaim deed transfers whatever interest the grantor may have in the property, without warranties, and is commonly used to move property into a trust or between spouses or partners.

Affidavit of Death of Trustee / Joint Tenant

An affidavit of death, recorded with a certified death certificate, removes a deceased trustee or joint tenant from title so the surviving trustee or owner can manage or transfer the property.

 

Administration and Court Processes

Probate

Probate is a court‑supervised process to transfer assets under a will or by intestacy. Timing varies by county and case complexity and requires notices, accountings, and court orders. Fees for probate are set by statute as a percentage of the gross value of the probate estate.

Intestate Succession

Intestate succession is California’s default inheritance scheme when there is no valid will. Your property may pass to relatives you would not have chosen.

Heggstad Petition (California Probate Code §850)

A Heggstad petition asks the court to confirm that an asset belongs to a trust when the settlor intended to fund it. When successful, it can avoid full probate on that asset, saving time and money.

Small Estate Affidavit (California Probate Code §13100)

A small estate affidavit is a statutory shortcut to collect certain personal property when the estate is below the threshold. As of 2025, the limit is $208,850, but this figure changes periodically.

Spousal or Domestic Partner Property Petition

A spousal or domestic partner property petition is a streamlined court procedure to confirm or transfer property to a surviving spouse or registered domestic partner.

Trust Administration

Trust administration is the process a successor trustee follows at incapacity or death of the Settlor. It includes notice, inventory and valuation, tax and debt handling, prudent investing, accounting, and distributions.

No‑Contest Clause

A no‑contest clause is a provision that may penalize certain challenges to an estate plan. California enforces these clauses only in limited circumstances.

 

Taxes and Cost Basis

Step‑Up (or Step‑Down) in Basis

A step‑up or step‑down in basis adjusts tax basis to a property’s fair market value at death. A step-up in cost basis often reduces capital gains on a later sale.

Estate and Gift Tax Basics

Estate and gift taxes are federal transfer taxes that may apply to large estates or lifetime gifts. California has no separate estate or inheritance tax; coordinate plan design with your CPA.

Proposition 19 (Property Tax)

Proposition 19 sets California rules that limit parent‑child property‑tax benefits and govern base‑year transfers for eligible homeowners. Deed and trust choices can affect reassessment.

 

Specialized Trusts You May Encounter

AB Trust / Bypass and Survivor’s Trusts

An AB trust, also called a bypass and survivor’s trust, is a married couple’s trust that mandates a split at the first death for tax, protection, or family reasons. It is less common these days due to increased estate tax exemptions, since they were historically used for those with large estates.

QTIP Trust

A QTIP trust provides income to a surviving spouse while preserving principal for children or others. It can offer tax advantages and is useful for blended families or asset protection.

Special Needs Trust (SNT)

A special needs trust holds assets for a beneficiary with disabilities without disqualifying public benefits.

 

Practical Drafting Terms You May Read or Hear

• Dispositive Provisions: These provisions specify who receives what and when.
• Specific vs. Residual Gifts: Specific gifts are items or flat dollar amounts given off the top, while residual gifts distribute percentages of the remaining estate / trust.
• Descendants by Representation: Children share equally; if no children are living, the nearest generation with living descendants shares equally. A deceased child’s share passes in equal shares to their descendants in the same manner.
• Fiduciary Powers: These are the trustee’s or executor’s authorities, often listed by statute or detailed in the document.
• Principal and Income: These are accounting categories that determine who benefits now and later.
• Trust Protector: A trust protector is a third party with limited powers to modify the trust in case of a change in law or circumstances, to help ensure the intent of the Settlor(s) is carried out.
• Incapacity Standard: This provision defines incapacity and sets the proof required for a successor trustee or agent to act.

 

How These Terms Work Together

A California estate plan usually combines a revocable living trust, pour‑over will, Advance Health Care Directive, and Durable Power of Attorney. Titles and beneficiary designations are tuned to the trust, producing a coherent system for lifetime management and legacy transfer.

 

Quick Reference Checklist

• Do you have a revocable living trust and pour‑over will?
• Are your assets correctly titled to the trust? Recently verified?
• Are beneficiary designations current and coordinated with the plan?
• Do you have an Advance Health Care Directive and General Durable Power of Attorney?
• Have you named capable successor fiduciaries and backups?
• Do your real estate deeds match your goals?
• Have you reviewed your plan after major life changes or law updates?

 

When to Review Your Plan

• Marriage, divorce, or new partnership.
• Births, deaths, or disability in the family.
• Significant changes in assets, businesses, or real estate.
• Moving to or from California.
• Law changes affecting taxes or property transfers.
• Every three to five years as a general audit.

 

We Can Help

At Pederson Law Offices, we design, update, and administer California estate plans and trusts. If you have questions about any term in this glossary or how it applies to your situation, contact us at (805) 495-3444 or use our online scheduler to book a complimentary 15-minute introductory consultation.

 

 

Please note: This blog post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Consult with a qualified attorney at Pederson Law Offices for advice on your specific circumstances.