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Intermediate1.5 hours11 terms

Inheritance & Beneficiary Planning Glossary

This curated collection offers key terms that might be helpful when exploring beneficiary review and inheritance planning for your real estate investments. It provides clear explanations of commonly referenced concepts to support your learning journey. Use it as a quick reference to understand the terminology you may encounter.

Term Collection

1

Joint Tenancy with Right of Survivorship

Joint Tenancy with Right of Survivorship (JTWROS) is a form of property co-ownership where two or more individuals hold equal, undivided interests, and upon the death of one owner, their share automatically transfers to the surviving owner(s) without probate.

Intermediate15-18 min
2

Real Estate Trust

A real estate trust is a legal arrangement where a property owner transfers title to a trustee, who holds and manages the property for the benefit of designated beneficiaries, offering advantages like privacy, asset protection, and streamlined estate planning.

Intermediate15-18 min
3

Estate Tax

A federal and/or state levy on the transfer of a deceased person's net assets to their heirs, calculated on the fair market value of the estate at the time of death or an alternate valuation date, after specific deductions and exemptions. It is a tax on the right to transfer property, not on the right to receive it.

Advanced8-9 min
4

Estate Planning

Estate planning is the process of arranging for the management and disposal of a person's assets, including real estate, during their life and after death, to minimize taxes and ensure wishes are met.

Intermediate15-18 min
5

Inheritance Tax

Inheritance tax is a state-level tax levied on the value of assets inherited by beneficiaries from a deceased person's estate, paid by the recipient rather than the estate itself.

Intermediate5-6 min
6

Transfer on Death (TOD) Deed

A legal instrument allowing a property owner to transfer real estate to a designated beneficiary upon their death, bypassing probate while retaining full ownership and control during their lifetime.

Intermediate5 min
7

Tenancy in Common

Tenancy in Common (TIC) is a form of co-ownership where two or more individuals hold distinct, undivided interests in a property, allowing for unequal ownership shares and independent transferability of each owner's portion.

Intermediate5 min
8

Probate

Probate is the legal process of proving a will's validity, settling a deceased person's estate, and distributing assets to heirs or beneficiaries under court supervision. It ensures proper asset transfer and debt settlement.

Intermediate15-18 min
9

Will

A Will is a legally binding document that specifies how an individual's assets, including real estate, should be distributed after their death, and designates an executor to manage the estate.

Intermediate13-14 min
10

Stepped-Up Basis

Stepped-up basis is a tax provision that allows the cost basis of an inherited asset, such as real estate, to be adjusted to its fair market value on the date of the decedent's death, significantly reducing or eliminating capital gains tax for the heir upon sale.

Advanced8 min
11

Life Estate

A Life Estate is a form of property ownership where an individual (the life tenant) holds the right to possess and use a property for their lifetime, after which ownership automatically transfers to a designated third party (the remainderman).

Advanced5-6 min

Common Questions