Question 1

Ancillary administration:

Accepted Answer

Estate administration in a state in which decedent owned property other than his domiciliary state.

Question 2

p. 18Administrator cum testamento annexo (CTA):

Accepted Answer

Personal representative appointed by the court when the will fails to name an executor or the named executor fails to complete the administration.

Question 3

Administrator de bonis non (DBN):

Accepted Answer

Personal representative appointed by the court when a previous administrator fails to complete the administration.

Question 4

Beneficiary:

Accepted Answer

Person who inherits property under a will; recipient of insurance proceeds.

Question 5

Certificate of deposit:

Accepted Answer

Long-term bank savings account.

Question 6

Discretionary income:

Accepted Answer

Disposable income.

Question 7

Domicile:

Accepted Answer

Legal home

Question 8

Donee:

Accepted Answer

Recipient of a gift.

Question 9

Donor:

Accepted Answer

Person who gives a gift.

Question 10

Endowment policy:

Accepted Answer

Short-term life insurance policy in which proceeds are paid to the insured, if alive at the end of the term, or to a beneficiary named in the policy if the insured is deceased.

Question 11

Estate administration:

Accepted Answer

Process of collecting assets, paying debts, and distributing a person’s assets after his death.

Question 12

Estate planning:

Accepted Answer

Process of helping a person accumulate assets during his life and allocate them on his death.

Question 13

Executor(trix):

Accepted Answer

Personal representative named in a will.

Question 14

Financial plan:

Accepted Answer

Strategy to help a person acquire assets.

Question 15

Formal administration:

Accepted Answer

Estate administration including all notices and a hearing.

Question 16

General administrator:

Accepted Answer

Personal representative appointed by the court for an intestate.

Question 17

Incidents of ownership:

Accepted Answer

Retaining rights to property, such as the ability to sell the property, benefit from the property, etc.

Question 18

Informal administration:

Accepted Answer

Estate administration for small estates, permitted in some states.

Question 19

Intestate:

Accepted Answer

Person who dies without a valid will.

Question 20

Joint tenancy:

Accepted Answer

Title to property held by more than one person with a right of survivorship.

Question 21

Letters of administration:

Accepted Answer

Court order authorizing a personal representative of an intestate to administer the estate.

Question 22

Letters testamentary:

Accepted Answer

Court order authorizing a personal representative of a testate to administer the estate.

Question 23

Living trust:

Accepted Answer

Trust created to take effect during a person’s life.

Question 24

Marital deduction:

Accepted Answer

Estate tax advantage for property given to surviving spouse—it passes tax free.

Question 25

Personal representative:

Accepted Answer

Fiduciary responsible for administering a decedent’s estate.

Question 26

Portability:

Accepted Answer

Ability of surviving spouse to use unused portion of deceased spouse’s estate tax exemption.

Question 27

Probate:

Accepted Answer

To prove a will is valid.

Question 28

Qualified terminable interest property (QTIP):

Accepted Answer

Property given to surviving spouse that qualifies as a marital deduction even though the spouse’s interest is not absolute ownership.

Question 29

p. 19Risk aversion:

Accepted Answer

Degree of risk a person is willing to undertake in selecting an investment.

Question 30

Summary proceedings:

Accepted Answer

Abbreviated administration permitted in some states for small estates.

Question 31

Tenancy by the entirety:

Accepted Answer

Joint ownership of property for legally married husbands and wives, with a right of survivorship.

Question 32

Term life insurance:

Accepted Answer

Life insurance in which premiums increase periodically, the insured has no cash surrender value, and the face amount decreases over time.

Question 33

Testate:

Accepted Answer

Person who dies with a valid will.

Question 34

Venue:

Accepted Answer

Physical location of the appropriate court.

Question 35

Whole life insurance:

Accepted Answer

Life insurance in which premiums and face amount remain constant and the insured has property rights in the policy.

Question 36

Will:

Accepted Answer

Document used to dispose of a person’s property after death.

terms - chapter 1

wills, estates - terms

Question	Answer
Key Terms
Ancillary administration:	Estate administration in a state in which decedent owned property other than his domiciliary state.
p. 18Administrator cum testamento annexo (CTA):	Personal representative appointed by the court when the will fails to name an executor or the named executor fails to complete the administration.
Administrator de bonis non (DBN):	Personal representative appointed by the court when a previous administrator fails to complete the administration.
Beneficiary:	Person who inherits property under a will; recipient of insurance proceeds.
Certificate of deposit:	Long-term bank savings account.
Discretionary income:	Disposable income.
Domicile:	Legal home
Donee:	Recipient of a gift.
Donor:	Person who gives a gift.
Endowment policy:	Short-term life insurance policy in which proceeds are paid to the insured, if alive at the end of the term, or to a beneficiary named in the policy if the insured is deceased.
Estate administration:	Process of collecting assets, paying debts, and distributing a person’s assets after his death.
Estate planning:	Process of helping a person accumulate assets during his life and allocate them on his death.
Executor(trix):	Personal representative named in a will.
Financial plan:	Strategy to help a person acquire assets.
Formal administration:	Estate administration including all notices and a hearing.
General administrator:	Personal representative appointed by the court for an intestate.
Incidents of ownership:	Retaining rights to property, such as the ability to sell the property, benefit from the property, etc.
Informal administration:	Estate administration for small estates, permitted in some states.
Intestate:	Person who dies without a valid will.
Joint tenancy:	Title to property held by more than one person with a right of survivorship.
Letters of administration:	Court order authorizing a personal representative of an intestate to administer the estate.
Letters testamentary:	Court order authorizing a personal representative of a testate to administer the estate.
Living trust:	Trust created to take effect during a person’s life.
Marital deduction:	Estate tax advantage for property given to surviving spouse—it passes tax free.
Personal representative:	Fiduciary responsible for administering a decedent’s estate.
Portability:	Ability of surviving spouse to use unused portion of deceased spouse’s estate tax exemption.
Probate:	To prove a will is valid.
Qualified terminable interest property (QTIP):	Property given to surviving spouse that qualifies as a marital deduction even though the spouse’s interest is not absolute ownership.
p. 19Risk aversion:	Degree of risk a person is willing to undertake in selecting an investment.
Summary proceedings:	Abbreviated administration permitted in some states for small estates.
Tenancy by the entirety:	Joint ownership of property for legally married husbands and wives, with a right of survivorship.
Term life insurance:	Life insurance in which premiums increase periodically, the insured has no cash surrender value, and the face amount decreases over time.
Testate:	Person who dies with a valid will.
Venue:	Physical location of the appropriate court.
Whole life insurance:	Life insurance in which premiums and face amount remain constant and the insured has property rights in the policy.
Will:	Document used to dispose of a person’s property after death.

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