Key estate planning terms include intestate, will, trust, executor, trustee, beneficiary, power of attorney, probate, and estate tax. Understanding these terms helps you read your own documents with confidence, whether you work with an attorney or build your plan through an online platform like FastWill.
Estate planning documents are full of terminology that lawyers use every day but most people never learn. You do not need a law degree to have a solid estate plan, especially with tools that can tailor legal documents to your specific situation, but you should understand the words in the documents you sign. Here are the essential terms everyone should know before they start.
Intestate
A person who dies without a valid will is said to have died intestate. When this happens, state law rather than the person's own wishes determines who inherits their property.
Estate Planning
The process of organizing how a person's assets will be managed and distributed upon incapacity or death, including tax and liquidity planning.
Will
A legal document specifying how a person's property should be distributed after death. Some states refer to this as a last will and testament.
Trust
A legal arrangement where a person transfers assets to a trustee, who manages those assets for the benefit of the trust's beneficiaries. According to Cornell Law School's Wex legal dictionary, a trust divides property rights into a fiduciary relationship, in which legal ownership of assets goes to a trustee while a beneficiary holds the beneficial interest in those assets.
Grantor
The person who creates a trust and contributes property to it. Also sometimes called the settlor.
Revocable Trust
A trust that lets the grantor continue to own and control their property during their lifetime, and to terminate, revoke, modify, or amend the trust while they are alive.
Irrevocable Trust
A trust that the grantor generally cannot change or terminate once it is created, which can offer stronger asset protection and tax benefits in exchange for less flexibility.
Special Needs Trust
A trust established for the benefit of a person with a disability, structured to preserve their eligibility for means-tested government benefits by limiting how trust assets can be used. According to the Cornell Law School Wex entry on special needs trusts, funds held this way generally do not count against SSI income caps as long as the trustee, rather than the beneficiary, controls how the money is spent.
Pour Over Will
A will that names a trust as the beneficiary of any assets not otherwise addressed in a person's estate plan, working alongside a trust rather than replacing it.
Power of Attorney
A legal document giving a designated person, called the agent, authority to act on behalf of another person, called the principal, in specified circumstances. The agent does not need to be an attorney; you can name any trusted adult.
Probate
The legal process of validating a will and administering the distribution of a deceased person's assets. Probate is often misunderstood: having a will does not avoid probate entirely, but it typically makes the process faster and ensures the court follows your wishes rather than your state's intestacy rules.
Inventory
A list of a decedent's or trust's assets that is filed with the court during the probate process.
Operation of Law
The way certain assets pass at death based on state law or how the asset is titled, rather than under the terms of a person's will. When someone dies without a will, assets pass through operation of law.
Heir
A person legally entitled to inherit from another person's estate. When someone dies without a will, their assets pass to whoever the law designates as their heirs, typically starting with a surviving spouse, then children or grandchildren.
Beneficiary
A person or entity named to receive assets from an estate, trust, life insurance policy, or account. Beneficiaries do not need to be heirs; you can name friends, partners, organizations, or charities.
Decedent
A legal term for a person who has died.
Executor
The person named in a will to carry out its terms and distribute the estate's assets. Some jurisdictions call this role a personal representative, and a few older statutes still use the term executrix for a female executor.
Trustee
The person or entity responsible for managing a trust's assets and distributing them to the trust's beneficiaries according to the trust's terms.
Living Will
A legal document specifying a person's wishes for end-of-life medical treatment if they become unable to communicate those wishes themselves. Also called an advance directive in some states.
Health Care Proxy
A document appointing someone to make health care decisions on a person's behalf if that person becomes incapacitated. Also called a health care power of attorney.
Gift Tax
A federal tax on the transfer of assets from one living person to another, above a certain annual and lifetime exemption amount.
Estate Tax
A tax on the transfer of a person's assets after death. The IRS estate tax page shows that the federal filing threshold has increased substantially over time, from $5 million in 2011 to $15 million in 2026. Some states also impose their own estate or inheritance taxes with lower exemption amounts, so check your specific state's rule.
How These Terms Work Together
In practice, these terms interact. A grantor creates a trust and names a trustee to manage it for a beneficiary. A testator signs a will naming an executor, who will eventually work with the probate court. A principal names an agent through a power of attorney, and separately names a health care agent through a health care proxy or living will. Understanding how these roles connect makes it much easier to read your own documents and know exactly what you are signing.
Common Mistakes to Avoid
- Confusing a trustee's role with an executor's role, since they operate in different documents and contexts
- Assuming a will avoids probate entirely rather than simply making it faster
- Not understanding the difference between a revocable and irrevocable trust before choosing one
- Naming a beneficiary on an account without understanding that this designation overrides your will
- Signing documents without asking what an unfamiliar term actually means
How FastWill Handles This
FastWill's online will builder uses plain language throughout the drafting process, so you understand exactly what each provision in your will does. If you are ready to put these terms into practice, start with our guide on how to write your own will, or see our deeper explainer on what probate really means if that process is still unclear.
Frequently Asked Questions
What is the difference between an executor and a trustee?
An executor manages and distributes assets under a will through the probate process. A trustee manages assets held in a trust, which generally does not go through probate.
Do I need to understand every legal term before I make a will?
Not every term in depth, but you should understand the core roles, will, trust, executor, trustee, beneficiary, and power of attorney, since these appear in almost every estate plan.
Is a living will the same as a last will and testament?
No. A living will addresses medical treatment preferences while you are alive but unable to communicate. A last will and testament addresses how your property is distributed after death.
What is the difference between an heir and a beneficiary?
An heir is who the law designates to inherit if there is no will. A beneficiary is anyone specifically named to receive assets, whether or not they are a legal heir.
Does having a will mean my estate skips probate?
No. A will typically makes probate faster and gives the court clear instructions to follow, but it does not eliminate the probate process itself.
