Glossary
Plain-English definitions
Every acronym and non-obvious term on Mister AMS has a canonical entry here. 37 terms and counting. Hover the underlined terms on any explainer for a quick definition, or browse the full list by category.
Foundation concepts
- ExecutorThe person named in a will to administer the estate.
- FiduciaryA person legally obligated to act in someone else's best interest, not their own.
- IntestateDying without a valid will.
- ProbateThe court-supervised process of validating a will, settling debts, and distributing a deceased person's probate assets.
- TestamentaryTaking effect only at the testator's death.
- TestatorA person who has made a valid will.
- Unauthorized Practice of LawUPLWhen a non-lawyer gives legal advice or drafts fact-specific legal documents — illegal in every US state.
End-of-life documents
- Advance Medical DirectiveAMDA document that states your healthcare wishes in advance and names an agent to make decisions for you if you can't.
- HIPAA AuthorizationHIPAAA release allowing healthcare providers to share your protected health information with people you name.
- Power of AttorneyPOAA document naming someone to act on your behalf on financial or legal matters.
Trusts
- BeneficiaryA person or entity entitled to receive benefits from a trust, retirement account, life-insurance policy, or will.
- Bypass trust (credit-shelter trust)A trust funded at the first spouse's death with an amount up to the estate-tax exemption, bypassing the surviving spouse's estate.
- Charitable Lead TrustCLTThe inverse of a CRT — charity gets income for a term, your heirs get what's left.
- Charitable Remainder TrustCRTA trust that pays you (or another non-charitable beneficiary) income for a term of years or life, with whatever's left going to charity.
- Domestic Asset Protection TrustDAPTA self-settled trust (you're the grantor AND a beneficiary) that shields assets from creditors — legal only in specific states.
- Dynasty trustA long-duration irrevocable trust designed to preserve wealth across multiple generations without each transfer triggering estate/gift tax.
- GrantorThe person who creates a trust and puts assets into it.
- Grantor-Retained Annuity TrustGRATAn irrevocable trust you fund with an appreciating asset; you get back fixed annuity payments for a term, and anything that grows above the IRS hurdle rate passes to heirs gift-tax-free.
- Intentionally Defective Grantor TrustIDGTA trust that is outside your estate for estate-tax purposes but still yours for income-tax purposes — so you keep paying the trust's income tax, which effectively grows the trust tax-free for heirs.
- Irrevocable Life Insurance TrustILITAn irrevocable trust that owns a life-insurance policy so the death benefit is kept out of your taxable estate.
- Irrevocable trustA trust that, once created and funded, cannot be freely changed or revoked by the grantor.
- QTIP trustQTIPQualified Terminable Interest Property trust — gives a surviving spouse income for life but preserves principal for your chosen heirs.
- Revocable Living TrustRLTA trust you create and fund during your life, that you can change or revoke at any time, and whose assets pass to your named beneficiaries without probate.
- Special Needs TrustSNTA trust that lets a beneficiary with a disability benefit from assets without losing eligibility for means-tested public benefits (SSI, Medicaid).
- Spendthrift provisionA clause in a will or trust that prevents a beneficiary from assigning their interest and shields trust assets from the beneficiary's creditors.
- Spousal Lifetime Access TrustSLATAn irrevocable trust for the benefit of your spouse; the assets leave your estate but your spouse retains access, so the family keeps indirect use of the funds.
- TrusteeThe person or entity that legally holds trust property and manages it for the beneficiaries.
Tax concepts
- Federal estate-tax exemptionThe dollar amount each person can pass at death without federal estate tax — roughly $13.6M per person in 2024 values.
- Portability (of estate-tax exemption)A surviving spouse can inherit the unused portion of the deceased spouse's federal estate-tax exemption.
- Step-up in basisWhen you die, most of your assets get their cost basis reset to fair market value — heirs can sell immediately with zero capital-gains tax on pre-death appreciation.
- § 6166 installment payment electionAn IRS provision letting the estate tax attributable to a closely-held business be paid in installments over up to 14 years instead of 9 months after death.
Entities & business succession
- Buy-sell agreementA contract among co-owners of a business that says what happens to an owner's interest on death, disability, or exit — often funded with life insurance.
- Family Limited PartnershipFLPA partnership among family members that holds investment assets; seniors keep control as general partners and gift limited-partnership interests to juniors at valuation discounts.
Charitable vehicles
Titling & beneficiary designations
- TOD / POD designationTODA beneficiary designation on a bank/brokerage account that sends the account directly to named beneficiaries at death, skipping probate.
- Tenancy By the EntiretiesTBEA form of real-estate title available only to married couples where neither spouse's individual creditors can reach the property.