Affidavit of domicile:
A document issued by a governing court that verifies where a person resided at the time of death. It is used to transfer ownership of property or stock into the new owner’s name. Sometimes it is referred to as an 'Affidavit of residence.'
Certificate of trust:
A listing of limited information about the administrative provisions of a trust, which proves a valid trust is established without revealing specific details of the property or the identity of the beneficiaries.
Certified death certificate:
A copy of the death certificate that has been certified; typically this document has a raised seal that says, “This is a true and certified copy.”
Sometimes, instead of a seal, these certificates have:
- An ink or multicolored signature
- A watermark (printed on security paper)
Joint tenancy with right of survivorship:
A type of account ownership where all owners have an equal right to the account’s assets. When one party dies, the survivor owns all remaining assets in the account.
Letter of instruction.
Any written document from a designated owner, successor, or court-appointed representative of the estate, providing specific instructions on how to distribute the remaining money in any accounts, and what to do with the accounts (such as close accounts) after disbursement.
(If you have an investment account, you may be asked to complete a “Letter of Authorization to Transfer Funds or Securities” in lieu of a letter of instruction.)
Letters Testamentary or Letters of Administration:
These documents are issued by the court and name a representative, typically an executor or administrator, who will manage the assets and liabilities of the estate, as designated in the will (or if there is no will, by state law). These documents may also be known as:
- Letters of personal representative
- Fiduciary letters
- Certified executor documents
Payable on death (POD):
An account with a beneficiary designated by the account owner. The surviving beneficiary will receive any money left in the account upon proof of the owner’s death. Sometimes these accounts are referred to as 'In Trust For (ITF) accounts.'
Potential Successor in Interest (PSII):
A person who may have an ownership interest in a property securing a mortgage loan; but, has not provided the appropriate documentation to become confirmed.
Probate.
The process in which a will is reviewed by a court to determine whether it is valid and authentic. During probate, the court will appoint a representative (sometimes called an ‘executor’ as named in the will (or an 'administrator' if there is no will). Probate also refers to the administration of the estate, with or without a will. Note: in some cases, based on state law, probate may not be required.
Small Estate Affidavit:
In some states, this document can be used to claim or disburse money from estates of limited size, where formal probate is not required under state law. The state law will specify the asset value that qualifies as a “small estate” and requirements for the affidavit.
Successor in Interest (SII):
Someone who has received ownership rights to the property through operation of law, death of a borrower, spouse or parent, divorce or separation, or an inter vivos (living) trust.
Tenants in common:
A type of account where each owner owns a separate and distinct share of property. Unlike joint tenancy, these shares can be freely transferred to other owners, and there is no right of survivorship among owners.
Transfer on death (TOD):
A feature of a non-retirement investment account that allows the owner to designate beneficiaries without going to probate.
Trust:
A legal arrangement involving three parties: the party creating the trust (grantor), the party administering the property within the trust’s terms (trustee), and the party for whom the trust is administered (beneficiary).
Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA):
The umbrella acts under which custodial accounts for minors are set up. The custodian of the account should transfer control of the assets to a minor when he or she reaches the age specified by statute (usually between the ages of 18 and 21).
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