Definitions

 

Estate

The total property owned by an individual prior to the distribution of that property under the terms of a will, trust or inheritance laws. An individual¹s estate includes all real estate, personal property and liabilities.

 


 

Property

Property is described as either real or personal. Real property is real estate, and personal property is everything else. Personal property includes physical assets such as automobiles, equipment, household items, etc. Personal property also includes financial property, such as securities, notes or loans receivable, bank accounts, cash and insurance policies.

 


 

Grantor/Trustor

A Grantor or Trustor is an individual who creates a Trust and who transfers
legal title of Property to the trust. In the Estate planning Arena the
Grantor/Trustor is usually the current beneficiary of the trust which is set
up.

 


 

Trustee & Successor Trustee

In the context of a trust, the trustee holds the legal title to property which is transferred to the trust, and the trustee then becomes the chief administrator over that property. The trustee is strictly bound by the terms and provisions written into the trust, and is obligated to deal with and transfer property to beneficiaries or heirs according to those written instructions. A successor trustee is simply someone who replaces an existing trustee, and often they are pre-appointed in a trust so that the successor may immediately step up to the position of trustee when necessary.