Asset Management & Asset Protection Terminology

ADMINISTRATOR: is a court appointed person to supervise and represent a probate estate when there is no will or a will that fails to name an executor.

ASSETS: term used to describe everything of value a person owns, such as real estate, art, furniture, bank accounts, life insurance, your home etc.

BENEFICIARY: an individual for whose benefit a document, such as a trust, is created.

CHARGING ORDER: a charging order allows the judgment creditor to receive income and assets from an FLP, but only if distributions are made. Even if no distribution is made, the judgment creditor must report the debtor’s portion of the partnership income as taxable income.

COMMUNITY PROPERTY: a system of property laws by which all property acquired by husband or wife during marriage is owned in common by the husband and wife.

CONSERVATOR: a person that is legally responsible for the care of another person. Court appointed conservators are typically called guardian.

CONVEYANCE: a written instrument that transfers title to or an interest in land from one party (grantor) to another (grantee).

CORPORATE TRUSTEE: an institution, often a trust company or bank, that specializes in managing trusts.

CREDITOR: a person or entity to whom money is owed by a debtor.

DECLARATION OF TRUST: a document that arranges the powers of a designated trustee who holds title to specified property for the benefit of someone else, called the beneficiary.

DEED: a written document that transfers ownership of land from one party to another. The seller is called the "grantor" and the buyer is called the "grantee".

DURABLE POWER OF ATTORNEY: a legal document that transfers full or specified authority to someone else to execute transactions on your behalf.

ESTATE: the degree, nature and amount of interest or ownership a person may have in any property.

EXECUTOR: a person or entity named in a will that will carry out the deceased's last will.

FAIR MARKET VALUE: the highest price a property will bring on the open market, given an informed and freely willing buyer and seller.

GENERAL PARTNER: makes all business decisions of the FLP while owning as little as 1%.

GIFT: a transfer from one person to another person free of (fair market value) compensation.

GRANTEE: the person acquiring title to real property by a deed.

GRANTOR: the person transferring title to real property by a deed.

IRREVOCABLE TRUST: a trust that cannot be revoked, cancelled, or modified once it is in place.

JUDGMENT CREDITOR: the party to a lawsuit who successfully obtains a money judgment against the other party, the judgment debtor.

JUDGMENT DEBTOR: the party against whom the judgment creditor obtains a money judgment.

LIEN: a claim against real property.

LIMITED PARTNERS: limited partners have no right to participate in the management of business.

LIS PENDENS: a notice of pending litigation regarding a particular piece of property.

PROBATE: the process by which a court changes the title to a deceased person's real property.

REVOCABLE TRUST: a trust that contains provisions that allow revocation and modifications.

SETTLOR: creator of the Trust.

TRUSTEE: the third party to a deed of trust that holds the bare legal title to property tendered by the trustor as security for the repayment of a loan.

TRUSTOR: the property owner who voluntarily puts a deed of trust against his/her property.

WILL: a document that gives instructions regarding the disposition of assets after death.
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