Glossary Part One

Asset
An item of real or personal property owned by an individual or by an entity, such as a trust.

Beneficiary
Anyone named to receive money or property, such as from a will, a trust, a life insurance policy or a retirement account.

Conservator
The person who has been appointed by the court to manage the financial affairs of a protected person.

Estate
All personal, financial, insurance and real property owned by the individual.

Fully-Funded Living Trust
All of the settlor’s assets are placed in a living trust.

Heirs
People who, because of their relationship to the decedent, are entitled to decedent’s property if the decedent dies without a will.

Intestate Succession
A process in which Colorado law decides how your property will be distributed if the property is not disposed of through your will.

Irrevocable Trust
A trust which cannot be changed after it is signed.

Living Trust
A type of trust in which one party, the Settlor, during his or her lifetime, creates a trust for himself or herself and/or for others. Property may be transferred to the trust during the lifetime of the Settlor of the trust or after his or her death. Once property is transferred to the trust, it is under the control of a trustee and distributed according to the terms of the trust.

Payable on Death Account (POD Account or a Trustee Account)
A bank account that, upon the account-holder’s death, distributes money to the person or people named by the account holder.

Payee(s)
The person(s) named to receive the money from a POD account after the account holder’s death.

Personal Property
Property other than real property, such as stocks, bonds, bank accounts, cars, boats, clothing and personal items.

Personal Representative
The person who handles your affairs after your death. This person is either nominated by you in your will or is chosen by a court if you die without a will.

Pour-Over Will
A will that provides that all property administered in probate is distributed to a living trust.

Probate
The legal process by which your property is collected and distributed according to your will or by intestate succession.

Real Property
Land and buildings or structures placed on land, such as houses, commercial buildings and agricultural buildings.

Revocable Trust
A trust that can be amended or changed by the Settlor of the trust.

Settlor
The creator of a trust. Settlors often put money or property into a trust.

Testamentary Trust
A type of trust that is set up in your will. It only takes effect after your death.

Trust
An arrangement in which one person (trustee) holds property for the benefit and use of another (beneficiary).

Trustee
The person who manages and distributes the property held in a trust.

Will
A signed, written legal document that describes how you want your estate to be distributed after you die.