Glossary: After a Death

Please use this glossary to better understand our “After a Death” series, which explains what happens to your assets and estate upon your passing.

Assets: Can describe anything the decedent owns, including cash, bank accounts, cars, real estate, collectibles, etc.

Beneficiary: The persons, trust or entity designated to receive an asset or death beneficiary after the account holder dies.

Claim: What a creditor will file against the estate in order to claim what the decedent owned them

Court: The probateProbate can refer to the process of settling the estate of a deceased person. Read More court located in county the decedent resided.

CPA: Certified Public Account who, among a large variety of roles, usually assists with income tax returns, accounting, and financial organization.

Creditor: Anyone to whom the decedent owed money (e.g., credit cards, accident victim, landlord).

Debt: Anything the decedent owes, like a mortgage, credit card debt, or a court judgment against them.

Decedent: The individual who has died.

Devisee: Someone who has been left something in a decedent’s will.

Estate Tax: The tax owed on the decedent’s taxable estate.

Federal Estate TaxFederal Estate Tax: The federal estate is part of a unified federal gift and estate tax that is an excise on the transfer of wealth. Read More Return: A snapshot of the decedent’s taxable estate on their date of death filed with the IRS due nine months after date of death. A tax is only due if the decedent died with a taxable estate over $11.18 million (in 2018).

Financial Advisor: Provides financial advice to people based on their financial needs and goals over the course of their life.

Heir: Individuals who inherit property if the decedent did not leave a will.  They are defined by statute and interested parties in the estate until a will is admitted to probateProbate can refer to the process of settling the estate of a deceased person. Read More.

Income Tax: Tax on income earned by the decedent in the final year of life, or their estate or trust during administration.

Intestate or Intestacy: Dying without a will.

IRA: An Individual Retirement Account that allows individuals to direct income to an account that will defer taxes on the income until it is withdrawn.

Joint Owner: Anyone who co-owns property with the decedent, like an account or real estate.

Joint Tenancy: A way to hold property with a joint owner so that it will automatically pass to the joint owner upon death, and not through probateProbate can refer to the process of settling the estate of a deceased person. Read More.

Life Insurance: An agreement that pays a death benefit to the designated beneficiaries when the insured individual dies in exchange for premiums paid during the decedent’s life.

Massachusetts Estate Tax Return: A snapshot of the decedent’s taxable estate on their date of death filed with the Massachusetts DOR due nine months after date of death. A return is only required to be filed if the decedent’s taxable estate (plus lifetime taxable gifts) exceeds $1 million (in 2018).

Personal Property: The items that belonged to the decedent like silverware, furniture, clothes, collectibles, etc.

Personal Representative: The individual appointed by the probateProbate can refer to the process of settling the estate of a deceased person. Read More court to administer the estate of the decedent.

ProbateProbate can refer to the process of settling the estate of a deceased person. Read More: the court process legally declaring the decedent’s will (if any) as valid, determining their heirs or devisees, appointing a personal representative, and administering the estate.

ProbateProbate can refer to the process of settling the estate of a deceased person. Read More Property: Property which belonged to the decedent and was held in their individual name.

Real Estate: Property like land or a building.

Retirement Account: An account used to set aside savings for retirement like an IRA, 401k, or similar plans.

Taxable Gift: A gift to any one individual (other than a spouse) that exceeds the annual exclusion amount in the year the gift was made ($15k in 2018).

Taxable Estate: The total value of the decedent’s estate less debts, expenses, and deduction.

Tenants in Common:  A way to hold property with another where you each own an equal share which can be individually sold or devised in a will or trust.  They each have a right to use and occupy the whole property.

Tenants by the Entirety: Only available to married couples, it is a way to co-own property with your spouse so that the decedent’s interest will automatically pass to the surviving spouse.

Transfer on Death (TOD) or Payable on Death (POD): Adding a TOD or POD beneficiary to your account ensures it passes to that person upon death.

Trust: A relationship where someone (donor) asks another (trustee) to hold property for a third person (beneficiary). All three people may be the same.

Will: The document that governs what should be done with a decedent’s property that was held in their own individual name and must pass through probateProbate can refer to the process of settling the estate of a deceased person. Read More.  Is also used to appoint a guardian for minor children and a personal representative.

If you have any questions about what these terms mean, feel free to contact us. We’re happy to help.