Glossary: legal words in terms you can understand

An ABLE account lets a person with a disability save money and pay for everyday costs. Family and friends can add money too. For 2026, the disability must have started before age 46. Total gifts into the account are capped at $20,000 a year (IRS Rev. Proc. 2025-32, as of October 2026). Money left at death may have to repay Medicaid.

Example: Grandma adds a little each month to her grandson’s ABLE account. He uses it for rent and a bus pass.

A personal representative, trustee, or conservator handles money that belongs to someone else. An accounting is how they show their work. It lists what the estate or trust had at the start, what came in, what was paid out, and what is left. Beneficiaries can use it to check that things were handled fairly.

Example: Ana settles her father’s estate. She sends her brothers a report that shows the house sale, the bills she paid, and each brother’s share.

Some states call the person who settles an estate without a will an “administrator.” Colorado and Arizona law uses one title for this job: personal representative. You may still see “administrator” on old documents or bank forms. The job is the same. Collect what the person owned, pay valid bills, and pass on what is left.

Example: Tom’s mother died without a will. The court named Tom to settle her estate. Her bank called him the administrator. Under Colorado law, his title is personal representative.

“Advance directive” is an umbrella term. It covers a medical power of attorney, which names a person to make health choices for you. It also covers a living will, which states your wishes about life support. Some people sign a CPR directive too. You sign these while you are well, so they are ready if you need them.

Example: Ruth names her daughter in a medical power of attorney. She also signs a living will that says no breathing machine if she will not recover.

An affidavit is a sworn statement in writing. You usually sign it in front of a notary, who checks your ID. Because it is sworn, banks and courts can rely on it. In estate work, affidavits are used to collect small estates, to prove a will was signed properly, and to transfer some property.

Example: After her husband dies, Lin signs a small estate affidavit and brings it to his bank. The bank releases his checking account to her.

When you sign a power of attorney, you are the “principal.” The person you choose to act for you is your agent. Your agent can do only what the document allows. An agent is expected to act for your benefit, keep your money separate from their own, and keep records. You can also name a backup.

Example: Frank names his son as his agent for money matters. While Frank recovers from surgery, his son pays the bills and talks to the bank for him.

Probate usually happens in the state where a person lived. But a home or land is handled under the law of the state where it sits. So if someone lived in Colorado and owned a condo in Arizona, the family may need a second, smaller case in Arizona. That second case is ancillary probate. A funded living trust or a beneficiary deed can often avoid it.

Example: Mike lived in Englewood and owned a winter home in Scottsdale. His family had to open a case in each state.

An attorney-in-fact does not need to be a lawyer. The phrase just means a person with legal power to act for someone else. Newer laws and forms usually say “agent” instead. Both words mean the same thing.

Example: Joan’s father signed a power of attorney many years ago. It names Joan as his “attorney-in-fact.” Joan has the same role an agent has today. She can pay his bills and handle his accounts, as the document allows.

A beneficiary is anyone who gets something under an estate plan or a beneficiary form. Your children might be beneficiaries of your will. A charity might be the beneficiary of your IRA. A trust has beneficiaries too, who receive money from the trustee. Keep your beneficiary forms up to date. They usually control who gets that account, even if your will says something else.

Example: Sam’s life insurance still names his brother. His will leaves everything to his wife, but the insurer pays his brother.

With a beneficiary deed, you keep owning and controlling your home while you live. You can sell it, refinance it, or change your mind. The deed must be signed and recorded with the county before you die. When you die, the home passes to the person you named. You cannot cancel it with your will. You must record a new document instead.

Example: June records a beneficiary deed naming her two daughters. When June dies, they take the house without opening probate.

A bequest is a gift made in a will. It can be a set amount of money, a certain item, or a share of what is left. Lawyers sometimes call a gift in a will a “devise.” Be clear about who gets what. Also say what happens if that person dies before you.

Example: Carl’s will leaves his fishing boat to his nephew and a sum of money to his church. Those are both bequests.

A probate bond protects the people who inherit. If the person handling an estate loses or misuses money, the bond company pays the estate back. Then it tries to collect from that person. A court can require a bond. Many wills say that no bond is needed. The cost of a bond is usually paid by the estate.

Example: Dana’s will says her son can serve without a bond. The court agrees, which saves the estate money.

A buy-sell agreement sets the rules before a crisis. It says who can buy an owner’s share and how the price is set. It can also say how the purchase is paid for, often with life insurance. Without one, a co-owner’s spouse or children could end up owning part of your business, or the family could struggle to sell their share.

Example: Two partners own a print shop. Their buy-sell agreement says that if one dies, the other buys the share at a set price, paid with insurance.

To sign a will, trust, or power of attorney, you need capacity. For a will, that generally means you understand what you own, who your family is, and what the will does. You do not need a perfect memory. A person with early memory loss may still have capacity, especially on a good day.

Example: Walt has mild memory loss. His lawyer meets with him alone and asks simple questions. She confirms he understands his plan before he signs.

A codicil adds to or changes part of a will, without rewriting the whole thing. It must be signed with the same steps as a will, such as witnesses. Many lawyers now prefer to write a new will instead. Codicils can get lost or cause confusion about what the final plan is.

Example: After her grandson is born, Peg signs a codicil that adds him to her will. She keeps it with the original will in her fire safe.

Arizona is a community property state. Most things a married couple earns or buys during the marriage belong to both of them equally. Gifts and inheritances stay separate. Colorado is not a community property state. But it has rules for property that was community property in the state where the couple got it.

Example: Raul and Eva bought a home in Phoenix with their paychecks during their marriage. The home is community property, so each of them owns half.

A conservator handles money matters. That includes paying bills, managing accounts, and protecting property. A guardian, by contrast, makes personal and health decisions. A court usually appoints a conservator after a hearing, and the conservator reports to the court. A durable power of attorney signed ahead of time can often make this unnecessary.

Example: After a stroke, Jim cannot manage his money. He never signed a power of attorney. His daughter asks the court to name her as his conservator.

A conservatorship starts with a petition to the court. The court gives notice, holds a hearing, and decides whether a conservator is needed. The law asks courts to choose the least restrictive option. It also asks them to let the person do as much as they can. Once appointed, the conservator files reports.

Example: Kay’s son asks the court for a conservatorship. The judge limits his power to her bank accounts, so Kay still handles her own spending money.

A creditor can be a bank, a hospital, a credit card company, or a person. When someone dies, their creditors are generally paid from the estate before heirs get their share. During probate, creditors get notice and a deadline to file claims. A claim filed too late is usually barred. Family members generally do not owe a loved one’s debts from their own money. The answer can be different for a co-signer, a joint account holder, or a spouse, especially in Arizona, a community property state.

Example: After his father dies, Sam gets a letter from a credit card company. He sends it to the personal representative instead of paying it himself.

During probate, the personal representative usually publishes a notice to creditors in a newspaper. Creditors then have a set time to file claims. Claims filed too late are generally barred. This protects the family from old bills showing up years later.

Example: After Leo’s estate publishes its notice, a hospital sends a bill before the deadline. The personal representative checks it and pays it from the estate.

Court forms and lawyers often say “decedent” instead of “the person who died.” It is not meant to sound cold. It is just a precise word. It shows up on probate documents, tax forms, and bank letters. On this website, we usually say “your loved one” or “the person who died.”

Example: A Colorado probate form asks for “the decedent’s date of death.” That simply means the date your loved one died.

Digital assets include email, cloud photos, social media, online shopping accounts, and crypto. After a death, families often can’t get in. Colorado and Arizona have both adopted a version of the same uniform law. It lets you say who may access your accounts. Some websites have their own tool for naming a contact. You can also put directions in your will or power of attorney.

Example: Nora names her son in her phone’s legacy contact setting. After she dies, he can save her photos.

Sometimes a person does not want an inheritance. They may not need it, or taking it could cause tax or benefit problems. A disclaimer is a written refusal. The gift then usually passes as if you had died first, often to your children. There are strict deadlines. You generally cannot disclaim after you have accepted the property.

Example: Rosa’s father leaves her money, but she would like it to go to her kids. She signs a disclaimer. Under her father’s will, her share then passes to her children. A lawyer checked this, and the deadline, first.

Distribution is the last big step in settling an estate or trust. Bills, taxes, and costs come first. Then the personal representative or trustee gives each beneficiary their share. Some shares are paid in cash. Others are items, like a car or jewelry. Beneficiaries often sign a receipt.

Example: Ben pays the last bills on his mother’s estate. Then he writes checks to his sisters and gives them her china, as her will says.

You can own homes in two states, but you have only one domicile. It is where you live and plan to stay, or plan to return to. Your driver’s license, voter registration, and tax returns can help show where it is. Probate usually starts in the county of your domicile.

Example: Pat and Lou spend winters in Mesa and summers in Littleton. They vote, file taxes, and see their doctors in Colorado. Their domicile is likely Colorado.

A power of attorney lets someone you trust handle your money and property. “Durable” means it still works if you become unable to decide for yourself. That is often when you need it most. Without one, your family may need to go to court for a conservatorship.

Example: Hal names his wife in a durable power of attorney. Years later, he develops dementia. She can keep paying the mortgage and handling his bank accounts without asking a judge.

Some states protect a surviving spouse who is left out of a will, or left very little. The spouse can choose, or “elect,” to take a share set by law instead. The amount often depends on how long the couple was married. There is a deadline to make the claim. Ask a lawyer how this works in your state.

Example: Ed’s will leaves everything to his children from his first marriage. His widow asks a lawyer whether she can claim an elective share.

An engagement agreement starts the lawyer-client relationship in writing. It says what the lawyer will do, and what is not included. It also explains fees, billing, and how either side can end the work. Read it carefully, and ask about anything unclear before you sign. Calling a law office or sending a website form does not make you a client. The engagement agreement is usually the step that does.

Example: After her first meeting, Ellen receives an engagement agreement for her new will and trust. She reads it, asks one question, then signs.

Your estate includes your home, cars, bank accounts, investments, belongings, and money owed to you. Some things pass outside probate, like accounts with a named beneficiary. Those skip the court process. Your “probate estate” is only what must go through court.

Example: Iris owns a house in her own name, a savings account with a payable-on-death beneficiary, and a car. The savings account goes straight to her beneficiary. The house and car may need probate or other paperwork.

An estate plan is more than a will. It usually includes a will or living trust and a durable power of attorney for money. It also has a medical power of attorney and a living will. Your beneficiary forms are part of it too. A complete plan covers your death, and also a time when you are alive but unable to decide.

Example: Before a long trip, Gail and Ray sign wills, powers of attorney, and medical directives. They also update the beneficiaries on their retirement accounts.

If someone received certain Medicaid benefits, such as nursing home care, the state may ask to be repaid after they die. The claim usually reaches what passes through the estate, and it can include the home. Planning ahead can make a difference.

Example: Lois received Medicaid in a nursing home for two years. After she dies, the state files a claim against her estate for part of the cost.

The federal estate tax applies only when an estate is worth more than the exclusion amount. For deaths in 2026, that amount is $15,000,000 per person (IRS Rev. Proc. 2025-32, as of October 2026). Most families will never owe it. Neither Colorado nor Arizona has its own estate tax or inheritance tax.

Example: Marta’s estate is well under the federal limit. Her family owes no estate tax. They still file her final income tax return.

Many people say “executor” for the person named in a will to settle the estate. In Colorado and Arizona, the legal title is “personal representative.” The job is the same. The person collects property, pays valid bills and taxes, and passes on what is left. Being named in the will is not enough by itself. The court must appoint the person first.

Example: Joe’s will names his sister as executor. She applies to the probate court, which appoints her as personal representative.

Trustees, personal representatives, agents, guardians, and conservators are all fiduciaries. The law holds them to high standards. They must be honest, avoid conflicts of interest, keep good records, and act with care. A fiduciary who breaks these duties can be held responsible.

Example: Nick is trustee of his late aunt’s trust. He cannot buy her house from the trust at a low price for himself. That would put his interests ahead of the beneficiaries.

In formal probate, a judge holds a hearing, interested people get notice, and the court makes rulings. It usually takes more time than informal probate. It is often used when a will is unclear, missing, or challenged, or when family members disagree. Some formal cases are also “supervised,” which means a judge must approve many steps.

Example: Two sisters disagree about which copy of their father’s will is valid. One files for formal probate so a judge can decide.

Signing a trust creates it, but the trust controls only what you put into it. Funding means retitling property to the trust, or naming the trust as beneficiary. For a home, that often means recording a new deed. For a bank account, it can mean changing the owner or naming the trust as payable-on-death beneficiary. A trust that is not funded may not avoid probate.

Example: Bill signs a trust but never changes his house deed. When he dies, the house still goes through probate.

The grantor sets the rules of the trust. With a living trust, the grantor is often the first trustee and the main beneficiary too. That way, you keep control while you are alive. Some documents say “settlor” or “trustor.” These words all mean the same thing.

Example: Sue creates a living trust and names herself trustee. She is the grantor. When she dies, the successor trustee she named takes over.

A guardian decides things like where a person lives and what medical care they get. Courts appoint guardians for adults who cannot make these choices safely. Parents can also name a guardian in their will for young children. For adults, the court first looks at less restrictive help, such as a medical power of attorney.

Example: Ann’s father has advanced dementia and no medical power of attorney. The court names Ann as his guardian, so she can choose his care home.

“Ad litem” means “for the case.” A guardian ad litem is often a lawyer. They study the facts and tell the judge what they think is in the person’s interest. They serve only for that one case. Courts appoint them for children, or for adults who cannot speak up for themselves.

Example: In a dispute over a trust for a 10-year-old, the judge appoints a guardian ad litem to speak for the child.

A guardianship starts with a petition. The court sends notice, holds a hearing, and decides whether the person is incapacitated. In Colorado and Arizona, the proof must be clear and convincing. The court must also find that less restrictive help will not work. A guardianship can be limited to certain decisions.

Example: Instead of a full guardianship, a judge lets Paul make only medical choices for his brother. His brother still runs his own daily life.

In everyday speech, an heir is anyone who inherits. In legal terms, heirs are the people state law names when there is no will. They are usually a spouse, children, or other close relatives. A person can be an heir and still get nothing, if a valid will leaves things to others.

Example: Max died without a will. His wife and two children are his heirs. Colorado law decides how they share his estate.

Privacy rules keep doctors from sharing your medical details without your permission. A HIPAA authorization gives that permission to family members or agents you choose. It does not let them make decisions. It only lets them get information. Many estate plans include one with the medical power of attorney.

Example: Eli signs a HIPAA authorization naming his two sons. When he is in the hospital, the nurse can update both of them by phone.

A holographic will is handwritten, not typed. Colorado and Arizona both accept one if the signature and the key parts are in the maker’s handwriting. Witnesses are not needed. But handwritten wills often cause problems. They can be hard to read, unclear, or missing important parts.

Example: Before a hospital stay, Vera writes a short will by hand and signs it. It may be valid. But her family later argues about what one line means.

A homestead exemption shields some of the equity in your home from many creditors. The amount protected is set by state law and can change. It does not protect against your mortgage lender. The rules differ between Colorado and Arizona. They are also different from property tax breaks that have similar names.

Example: Glen has medical bills he cannot pay. A creditor wins a court judgment. The homestead exemption protects part of the equity in his home.

Incapacity can come from dementia, a stroke, an injury, or a sudden illness. It can be short or long. Your powers of attorney and living trust usually say how incapacity is decided, often by a doctor’s letter. If you have no plan, a court may have to decide.

Example: After a car crash, Dee is unconscious for a week. She has a durable power of attorney, so her husband can pay their bills while she recovers.

Many estates in Colorado and Arizona go through informal probate. The person who wants to serve files an application with the court. A court official, called the registrar, reviews it. If it is complete, the person is appointed without a hearing. It works well when the will is clear and the family agrees.

Example: Jack files his mother’s will and an application in Arapahoe County. The registrar approves it, and Jack receives letters naming him personal representative.

When someone dies intestate, state law decides who inherits. The rules usually start with a spouse and children, then parents, then brothers and sisters. The rules in Colorado and Arizona are different, especially for blended families. The court also chooses who will settle the estate.

Example: Ted dies intestate. He leaves a wife and a son from an earlier marriage. Under Colorado law, his wife and son share the estate by a set formula.

The personal representative makes an inventory early in probate. It lists real estate, accounts, vehicles, and valuable items, along with their values. It helps everyone see what the estate holds. In Colorado, the inventory goes to interested people, not to the court.

Example: Ellen lists her father’s home, two bank accounts, his truck, and his coin collection, with a value for each. She mails the list to her brothers.

With an irrevocable trust, you give up the power to take the property back or rewrite the rules on your own. People use these trusts for certain tax, benefit, or protection goals. Because you give up control, they need careful thought. A living trust usually becomes irrevocable when the grantor dies.

Example: Owen sets up an irrevocable trust to own a life insurance policy for his children. He cannot later cancel it and take the policy back.

When one joint owner dies, the other owners keep the property without probate. Many married couples own their home this way. But adding a child as a joint owner can cause problems. The child becomes an owner right away. Their debts, divorce, or choices can then affect your property.

Example: Mary adds her son to her house deed as a joint tenant. When she dies, he owns the house. His sisters get none of it, even though her will splits everything equally.

Banks, title companies, and others will ask for “letters” before they deal with an estate. When there is a will, they are often called letters testamentary. When there is no will, they may be called letters of administration. You can order certified copies from the court.

Example: Kim brings certified letters to her late father’s bank. The bank lets her close his account and move the money into an estate account.

A living trust, also called a revocable trust, holds property you move into it. You usually serve as your own trustee, so you keep control. You can change or cancel it. If you become unable to manage things, your successor trustee steps in without going to court. When you die, the successor trustee passes the property on, usually without probate.

Example: Hank and Lucy put their home and savings into a living trust. When Hank dies, Lucy keeps managing it.

A living will speaks for you about end-of-life care. It tells doctors whether you want treatments like a breathing machine or a feeding tube if you will not recover. It is different from a medical power of attorney, which names a person to decide for you. Most plans include both.

Example: Faye’s living will says she does not want a feeding tube if she is permanently unconscious. Her doctors and family can follow her wishes.

An LLC, or limited liability company, is a business set up under state law. Its owners are called members. In many cases, if the business owes money or is sued, the members’ homes and savings are protected. That protection can be lost if the owners mix personal and business money. An LLC has an operating agreement that sets the rules. It should also say what happens if an owner dies.

Example: Tony runs a small landscaping company as an LLC. He keeps a separate business bank account and never pays personal bills from it.

Medicaid can help pay for long-term care, but only for people who meet strict income and asset limits. In Colorado, the program is called Health First Colorado. In Arizona, it is called ALTCS. For 2026, the monthly income limit for one person is $2,982 in both states (HCPF OM 25-073; AHCCCS eligibility chart, as of October 2026). Some people over the limit can still qualify, so it is worth asking before deciding.

Example: Bea’s nursing home costs more than her savings can cover for long. Her family asks a lawyer about Medicaid.

When you apply for long-term-care Medicaid, the state reviews transfers you made in the past 60 months. If you gave away money or property for less than its value, you may face a waiting period before benefits start. This is a federal rule, and it applies in both Colorado and Arizona (42 U.S.C. 1396p, as of October 2026).

Example: Gus gave his grandson a car two years before he applied for Medicaid. The state may count that gift and delay his coverage.

A mediator does not take sides or decide who is right. Instead, they help everyone talk, understand each other, and look for a solution. Mediation can be faster and less stressful than a trial. In estate disputes, it can help families settle disagreements about a will, a trust, or a parent’s care, and still keep talking afterward.

Example: Three siblings disagree about selling their late mother’s house. They meet with a mediator for a day and agree on a sale price and timeline.

Your medical agent talks with doctors and makes choices for you, following your wishes. You choose this person, not a court. Pick someone calm who will respect your values. Tell them what matters to you. Name a backup in case your first choice cannot serve.

Example: After Irene’s fall, she cannot speak. Her daughter is named in her medical power of attorney. She talks with the doctors and agrees to surgery for her mother.

A no-contest clause aims to discourage lawsuits. If a beneficiary challenges the will or trust and loses, they may give up what they would have received. Courts may not enforce the clause when the person had a good reason to sue.

Example: Cora’s trust leaves her son a share. It says he loses that share if he challenges the trust. He thinks hard before filing a lawsuit he might lose.

An operating agreement says who owns the LLC and in what shares. It also says how decisions get made and how profits are split. A good one also covers what happens if an owner dies, becomes disabled, or wants to leave. If you plan to put your LLC share in a living trust, check this agreement first. It may limit transfers.

Example: Lena and her brother own a rental property through an LLC. Their operating agreement says that if one dies, the other may buy the share at a set price.

Banks call it payable-on-death, or POD. Investment firms call it transfer-on-death, or TOD. Either way, you keep full control while you are alive. The person you name has no rights until you die. Then they claim the account with a death certificate.

Example: Al names his niece as the POD beneficiary on his savings account. When he dies, she brings a death certificate to the bank. The money is hers, without probate.

The personal representative, or PR, gathers what the person owned. They give notice to heirs and creditors, pay valid bills and taxes, and hand out what is left. The will usually names who should serve. If there is no will, state law sets an order. A PR is a fiduciary and may receive reasonable pay for the work.

Example: Lydia is named in her aunt’s will. After the court appoints her, she sends notice to the heirs within the deadline.

A pet trust names a caregiver and a trustee, sets aside money, and gives care instructions. It can cover food, vet bills, and where the pet will live. When the last pet it covers dies, any money left goes to the people the trust or the law names. Colorado and Arizona both allow pet trusts.

Example: Doris has two cats and lives alone. Her pet trust leaves money for her neighbor to care for them. Her cousin, as trustee, oversees the money.

In probate and family matters, most court cases start with a petition. You might file one to open a formal probate, to name a guardian or conservator, or to settle a dispute about a trust. The petition says who you are, what you want the court to do, and why. Other interested people usually get notice and a chance to respond.

Example: Ann’s father can no longer make safe choices and has no medical power of attorney. Ann files a petition asking the court to name her as his guardian.

A pooled trust is one type of special needs trust. A nonprofit group manages it. Each person has their own account, but the money is invested together. It can hold a person’s own money, such as an inheritance or a legal settlement, and still protect needs-based benefits. Federal law allows these trusts (42 U.S.C. 1396p(d)(4)(C), as of October 2026). Money left at death may stay with the nonprofit or repay Medicaid.

Example: Carl, who has a disability, inherits money from his aunt. He puts it in a pooled trust, so he keeps his Medicaid.

Each person has a federal estate tax exclusion. If the first spouse to die does not use all of it, the survivor can keep the rest. To do this, the estate must file a federal estate tax return, called Form 706, on time. It is due 9 months after death, and a 6-month extension is available. Smaller estates may elect late, within 5 years of death (IRS Rev. Proc. 2022-32, as of October 2026).

Example: When Frank dies, his wife files Form 706 to save his unused exclusion.

Even with a living trust, people forget to move some property into it. A pour-over will is a safety net. It says that anything still in your own name goes to your trust. The catch is that this property may still need probate, or other paperwork, before it reaches the trust.

Example: Ian buys a new car and never puts it in his trust. His pour-over will sends the car to the trust. But his family still has paperwork to do first.

A power of appointment lets someone you choose decide later who gets certain property. It adds flexibility. That person will know things you cannot know today. The power can be broad, or limited to a group, like your grandchildren.

Example: Rita’s trust gives her husband a power of appointment. After she dies, he can decide how much each grandchild gets, based on their needs at that time.

A power of attorney names an agent to act for you. A “general” power of attorney covers a wide range of money matters, but an older-style one may stop working if you lose capacity. A “durable” power of attorney keeps working if you can no longer decide. That is the kind most estate plans use. A medical power of attorney covers health choices instead.

Example: Rob signs a durable power of attorney for money and a medical power of attorney. His daughter can help with both if he gets sick.

Probate confirms the will, if there is one, and appoints a personal representative. That person gathers property, pays valid bills and taxes, and gives out what is left. Many Colorado and Arizona cases are handled informally, by filing forms. Property in a living trust, with a named beneficiary, or owned jointly with right of survivorship usually skips probate.

Example: Lou’s house was in his name alone, with no beneficiary deed. His daughter opened probate so she could sell it.

When a court appoints a conservator, the person whose money is managed is the protected person. In a guardianship, the person is often called the ward. Either way, the person keeps their dignity and many rights. The law asks guardians and conservators to involve them and to encourage self-reliance.

Example: Ray is the protected person in his conservatorship. His conservator still asks what Ray wants before selling his car.

When you sign your will, you and your 2 witnesses can also sign a sworn statement in front of a notary. It says the will was signed properly. Later, the court can usually accept the will without calling the witnesses. This saves your family time and stress.

Example: Clara signs her will with 2 witnesses and a notary present. Years later, her son files the will. Nobody has to track down the witnesses.

If an estate is under a dollar limit, the person entitled to it can sign an affidavit. They give it to the bank or whoever holds the property. There is no court case. You must wait a set number of days after the death. And no personal representative can have been appointed.

Example: Ned’s mother left a checking account, a small savings account, and nothing else. After the waiting period, Ned signs a small estate affidavit, attaches a death certificate, and collects the money.

Programs like SSI and Medicaid have strict asset limits. For SSI, the limit is $2,000 for one person (AHCCCS eligibility chart, as of October 2026). A special needs trust holds money for extras, like therapy, travel, or a phone. A trustee controls payments. A trust funded with the person’s own money must repay Medicaid at their death. Others are set up and funded by family.

Example: Liz leaves her son’s share in a special needs trust, so his benefits continue.

A spendthrift clause protects a beneficiary’s share while it is still in the trust. The beneficiary cannot sign it away. Many creditors cannot reach it until it is paid out. These clauses are common in trusts for young adults, or for people who struggle with money.

Example: Matt’s trust for his daughter has a spendthrift clause. When she runs up credit card debt, the card company cannot take the money still inside the trust.

SSI is run by Social Security, but it is based on need, not on work history. To qualify, a person must have very few countable assets. For 2026, the limit is $2,000 for one person and $3,000 for a couple. The basic monthly payment is $994 for one person and $1,491 for a couple (AHCCCS eligibility chart; HCPF OM 25-073, as of October 2026). An inheritance can end SSI, so families often plan with a special needs trust.

Example: Joy leaves her son’s share in a special needs trust, so his SSI continues.

When you sell property, you usually pay tax on the gain since you bought it. But when someone inherits property, the starting value is generally reset to its value on the date of death (26 U.S.C. 1014). If the heir sells soon after, there may be little gain to tax.

Example: Dad bought a house decades ago for much less than it is worth now. When he dies, the value resets. If his daughter sells it soon after, she may owe little capital gains tax.

A business succession plan answers hard questions ahead of time. Who will take over day-to-day work? Who will own the business? How will your family be paid fairly? A plan often ties together a buy-sell agreement, your will or trust, and powers of attorney. Starting early gives you time to train someone and make choices calmly.

Example: Rita owns a bakery. Her plan names her manager to run it if she can’t. Her trust leaves the bakery to her son, who will buy out his sister over time.

Your first-choice agent may die, get sick, move away, or simply say no. A successor agent is ready to step in. Without one, your family may need to go to court. Naming one or two backups is a simple way to make sure your power of attorney keeps working.

Example: Joan names her husband as agent and her daughter as successor agent. When her husband has a stroke, her daughter takes over paying Joan’s bills.

With a living trust, you are usually the first trustee. The successor trustee is the person you name to take over. They can manage the trust if you become unable, and settle it after you die, usually without court. The job comes with duties, including keeping beneficiaries informed.

Example: When Ada dies, her nephew becomes successor trustee. He tells the beneficiaries, sells her condo, pays her bills, and hands out the rest as her trust says.

With supported decision-making, you stay in charge. You choose supporters who help you gather information, understand your options, and share your decisions with others. Supporters do not decide for you. It can be a less restrictive choice than a guardianship. Both Colorado and Arizona have laws for these agreements. In both states, a supporter cannot be paid for the role.

Example: Maya has a mild intellectual disability. Her sister helps her read her lease and medical documents. Maya signs her own decisions.

A testamentary trust is written into your will. It does not exist until you die and the will goes through probate. Parents often use one to hold money for young children until they are older. Because it comes from a will, it does not avoid probate.

Example: Greg’s will says his children’s shares stay in a trust until each turns 25. His sister is the trustee. The trust starts after his will is probated.

The testator is the person whose will it is. To make a will in Colorado or Arizona, the testator must be at least 18 and of sound mind. The testator can change or cancel the will at any time, as long as they still have capacity.

Example: At 82, Hazel is the testator of her will. She reviews it every three to five years. After her husband dies, she signs a new one.

Every trust has three roles. The grantor creates it. The trustee manages the property. The beneficiaries receive the benefits. One person can fill more than one role. A trust can start during your life, like a living trust, or at your death, through your will. Some trusts can be changed, and some cannot.

Example: Leon creates a trust and names himself trustee. His kids are the beneficiaries after he dies. For now, Leon fills two roles.

After a death, the successor trustee takes over the trust. They notify beneficiaries, find and value the property, pay bills and taxes, keep records, and hand out what is left. It usually happens without a court case. But it is still a legal job, with deadlines and duties.

Example: Rose becomes trustee of her late father’s trust. She sends the required notices, sells his house, files his last tax return, and then pays her siblings their shares.

A trustee holds trust property and follows the trust’s instructions. They must be loyal to the beneficiaries, treat them fairly, invest with care, and keep records. A trustee can be you, a family member, a friend, or a bank.

Example: Bob names himself trustee of his living trust and his daughter as successor trustee. While Bob is well, he manages everything just as before. If he gets sick, his daughter steps in.

Undue influence is more than asking or persuading. It happens when someone in a position of trust uses pressure to replace the person’s wishes with their own. It often comes up when a caregiver or new friend suddenly gets a large share. Courts can set aside documents signed under undue influence.

Example: Weeks before he dies, a frail man changes his will to leave everything to his new caregiver. She drove him to a new lawyer and stayed in the room. His children challenge the will.

A will names your personal representative and says who receives your property. It can also name a guardian for young children. It takes effect only at death, and it goes through probate. It does not control accounts with a named beneficiary, or property in a trust. You can change it at any time while you have capacity.

Example: Nina’s will leaves her house to her two sons. It names her sister as personal representative, and a guardian for her teenage daughter.

Wills and some other documents need witnesses. A witness can later confirm that you signed willingly and seemed to understand. Choose adults who do not inherit under the document, even where the law allows it. That makes a challenge less likely.

Example: Hugo signs his will at his lawyer’s office. Two staff members who don’t know his family watch him sign. Then they add their own signatures.