Disclaimer: This glossary provides general information about terms used in California probate for informational purposes only. It is not legal advice and should not substitute consultation with a qualified California probate attorney regarding your specific situation. Laws and procedures can change.
Current as of April 27, 2025.
Acting with intent to deceive or defraud; dishonest purpose. Can lead to fiduciary liability or punitive damages.
Transferring possession, but not ownership, of personal property from one person (bailor) to another (bailee) for a specific purpose (e.g., safekeeping).
A financial statement showing assets, liabilities, and equity at a specific point in time.
A legal process where a judgment creditor obtains funds directly from the debtor’s bank account.
A federal court proceeding where a person or business unable to pay debts can seek relief, either through liquidation of assets or reorganization of debts. An inheritance received shortly after filing may become part of the bankruptcy estate. Outstanding debts of a decedent are handled through probate creditor claim procedures.
The value of an asset for tax purposes, usually the original cost, adjusted for factors like depreciation and improvements. Used to calculate capital gain or loss upon sale. Inherited assets typically receive a Step-Up in Basis.
A document (like a bond or check) payable to whoever possesses it. Requires careful handling as an estate asset.
A trial conducted before a judge without a jury. Most probate matters are decided by a judge.
The right to receive benefits (income, use, principal) from property, even if legal title is held by someone else (like a trustee).
A person or entity designated to receive assets or benefits from a will, trust, life insurance policy, retirement account, or other contract. (See California Probate Code §24 for specific definitions depending on context).
Naming a specific person, trust, or entity to receive assets directly upon death from accounts like life insurance, retirement plans (IRA, 401k), annuities, or Transfer on Death (TOD)/Payable on Death (POD) accounts, bypassing the probate process for those specific assets.
To give personal property (anything other than real estate) through a will.
A gift of personal property made in a will. Can be Specific, General, or Demonstrative.
See Memorandum of Costs.
A document transferring ownership of personal property.
A temporary insurance agreement.
A bank or investment account where funds belonging to a minor or conservatee are deposited, requiring a court order for any withdrawal. Used to protect funds until the minor reaches majority or the conservatorship ends. (Probate Code §3410 et seq.).
Standardized legal language frequently used in documents.
Latin for “in good faith.” Acting honestly and without intent to defraud.
A person who buys property in good faith, for fair value, and without notice of any competing claims or defects in the seller’s title. BFPs may receive special protection under the law.
An insurance policy required by the court from a personal representative or conservator/guardian of the estate (unless waived in the will/trust or by law) to protect the estate’s beneficiaries and creditors from potential financial loss due to the fiduciary’s mismanagement, negligence, or fraud. The amount is set by the court based on the estate’s value.
A court order releasing the surety company from liability on a bond after the fiduciary has completed their duties and accounted for all assets.
The value of an asset as shown on the company’s balance sheet (original cost less depreciation). May differ significantly from market value.
Violation or infraction of a law, duty, or obligation (e.g., breach of contract, breach of fiduciary duty).
Failure to perform a duty required by a contract without legal excuse.
Failure by a fiduciary (like an executor, trustee, conservator) to act according to the required standards of care, loyalty, and prudence in the best interests of the estate or beneficiaries. Can lead to litigation, surcharge, and personal liability.
A violation by a trustee of any duty owed to the trust beneficiaries, the trust instrument, or imposed by California law (primarily the Probate Code, Division 9). Because trustees hold a position of special trust and confidence (a fiduciary relationship), they owe strict duties of loyalty, care, prudence, and impartiality.
A written legal document presented to a court arguing a party’s position on points of law, citing supporting authorities.
The legal obligation to prove disputed facts in a lawsuit. The level of proof required varies (e.g., “preponderance of the evidence,” “clear and convincing evidence”).
The process of determining the fair market value of a decedent’s ownership interest in a closely held business (sole proprietorship, partnership, LLC, corporation). Often requires expert appraisal.
An agreement between business co-owners outlining procedures for buying out a departing owner’s interest upon specific events like death, disability, or retirement. Can be an important estate planning tool.
Another name for the B Trust in an A-B Trust structure, designed to hold assets up to the value of the deceased spouse’s estate tax exemption, “bypassing” inclusion in the surviving spouse’s taxable estate. Also called Credit Shelter Trust.
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