Glossary of Terms

Agent.   Agent includes an attorney-in-fact under a durable or non-durable power of attorney, a person who is authorized to make decisions concerning another person's health care and property.

Amendment to Trust.    An addition or change that alters the original terms of a trust; the power to amend is usually available only to the trustor.

Beneficiary.     Beneficiary as it relates to a trust beneficiary includes a person who has any present or future interest, vested or contingent, and also includes the owner of an interest by assignment or other transfer. As it relates to a charitable trust, beneficiary includes any person entitled to enforce the trust. As it relates to a beneficiary under a beneficiary designation, it refers to a beneficiary of an insurance or annuity policy, an account with pay on death (POD) designation, a security registered in beneficiary form or a pension, profit sharing, retirement or similar benefit plan, or any other non-probate transfer at death. As it relates to a beneficiary designated in a governing instrument, beneficiary includes a grantee of a deed, a devisee, a trust beneficiary, a beneficiary under a beneficiary designation, a donee, appointee or taker in default of a power of appointment and a person in whose favor a power of attorney or a power held in any person, fiduciary or representative capacity is exercised.

Caregiver.     A caregiver is someone who typically has primary responsibility for meeting the basic care and safety needs of another for certain periods of time.

Care Manager.      A care manager is typically a professional who is able to assess and evaluate a situation and its various components and then prescribe a plan of care that will be beneficial.

Codicil.   A codicil is a supplement or an addition to a Will.

Community Property.    Community property refers to property of a husband and wife that is acquired during the marriage and is deemed to be community property as prescribed in A.R.S. section 25-211.  It is property owned in common by husband and wife, each having an undivided one-half interest by reason of their marital status.  There are nine community property states, including Arizona.

Community Property with the Right of Survivorship.     Community property with the right of survivorship includes married co-owners of property held under circumstances that entitle one or more to the whole of the property on the death of the other but excludes forms of co-ownership registration in which the underlying ownership of each party is in proportion to that party's contribution.

Conservator.    Conservator means a person who is appointed by a court to manage the property of a protected person.

Dementia.        Dementia is a form of mental impairment in which cognitive and intellectual functions of the mind are prominently affected; impairment of memory is an early sign; total recovery is not possible since organic cerebral disease is involved.

Descendant.    Descendant means all of the decedent's descendants of all generations, with the relationship of parent and child at each generation.

Devise.      Devise, when used as a noun, means a testamentary disposition of real or personal property and, when used as a verb, means to dispose of real or personal property by will.

Durable Springing General Power of Attorney.  This document provides that a named agent will make financial decisions and manage financial affairs for any asset outside of trust, in the event of incapacity of the principal as certified by one or two physicians.

Durable Springing Health Care Power of Attorney.  This document provides that a named agent will make all health care decisions for the principal in the event of incapacity and inability to communicate health care decisions.

Durable General Power of Attorney Effective Immediately.  This document provides that a named agent will make financial decisions and manage financial affairs for the principal for any asset outside of trust, effective as soon as signed.

Estate.  An Estate includes the property of a decedent, trust or other person whose affairs are subject to the law of Tile 14, A.R.S, as originally constituted and as it exists from time to time during administration. As it relates to a spouse, the estate includes only the separate property and the share of the community property belonging to the decedent or person whose affairs are subject to Title 14, A.R.S.

Fiduciary.      Fiduciary includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate.  It may also include agents acting under a power of attorney.

Grantor.      See “Trustor.”

Guardian.     Guardian means a person who has qualified as a guardian of a minor or incapacitated person pursuant to testamentary or court appointment.

Heirs.   Heirs (except as controlled by A.R.S. section 14-2711) means persons, including the surviving spouse and the state, who are entitled under the statutes of intestate succession to the property of a decedent.

Incapacitated Person.  Under one statutory definition, an incapacitated person means any person who is impaired by reason of mental illness, mental deficiency, mental disorder, physical illness or disability, chronic use of drugs, chronic intoxication or other cause, except minority, to the extent that he or she lacks sufficient understanding or capacity to make or communicate responsible decisions concerning his or her person.

Intestate.    Intestate means without a Will or other testamentary instrument.

Issue.   The issue of a person means descendants as defined above.

Joint Tenants with the Right of Survivorship.      Joint tenants with the right of survivorship includes co-owners of property held under circumstances that entitle one or more to the whole of the property on the death of the other or others but excludes forms of co-ownership registration in which the underlying ownership of each party is in proportion to that party's contribution.

Living Will.  This document contains instructions regarding the type of care a person wishes to receive and does not wish to receive if in a condition that is terminal with no hope of recovery.

Mental Health Power of Attorney.     Mental Health Power of Attorney grants an agent the authority to place the principal in a level one behavioral health treatment facility for inpatient psychiatric care.  It may be revocable or irrevocable.

Person.     Person includes a corporation, partnership, or other association, or two or more persons having a joint or common interest.

Personal Representative.     Personal representative includes an executor, administrator, successor personal representative, special administrator and persons who perform substantially the same function under the law governing their status.

Pourover Will.    This testamentary document acts to transfer to a trust any asset for which there is no beneficiary and that has not been placed in the trust (or for which the trust is not the beneficiary) at the time of death.  The asset can be placed in the trust using the “pour-over” clause in the Will.  This would be accomplished through a probate proceeding administered by the personal representative named in the Will.

Principal.     Principal includes any person to whom a fiduciary as such owes an obligation.

Private Fiduciary.     A Private Fiduciary is an individual or company that is certified by the Arizona Supreme Court and bonded, and may act in a fiduciary capacity by court appointment or by contract.

Property.     Property means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest in anything that may be the subject of ownership.

Restatement of Trust.   A Restatement of Trust is a new trust that preserves the title and date of the original trust.

Revocable.      Revocable, as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest.

Separate Property.       Separate property means that property of a husband or wife which is his or her separate property as defined in A.R.S. section 25-213.

Settlor.               See “Trustor.”

Spendthrift Provision.      Spendthrift provision means a term of a trust that restrains both voluntary and involuntary transfer of a beneficiary's interest by the beneficiary.

Tangible Personal Property List.  This is a page upon which may be designated specific items of tangible personal property will pass to particular individuals upon death.

Testator.     Testator includes a person of either sex who executes his or her Will.

Trust.   Trust includes an express trust, private or charitable, with any additions, wherever and however created, revocable or irrevocable. Trust also includes a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust.  

Trustee.     Trustee means a person who administers a trust, with all of the powers and duties attendant thereto.

Trustor.      Trustor (or settlor or grantor) means a person, including a testator, who creates or contributes property to a trust. If more than one person creates or contributes property to a trust, each person is a settlor (settlor or grantor) of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion.

Will.     This testamentary document exists so that any assets owned individually at the time of death can be distributed according to the provisions set forth in the Will; there are technical statutory requirements that must be met in order for a Will to be deemed valid.