Trust Glossary: Common Trust Terms and What They Mean

Agent: A person who acts on another person's behalf.

Attorney In Fact: A person who is given written authorization to act on another person's behalf by a Power of Attorney Document.

Beneficiary: (1) The person for whose benefit a trust is created. (2) The person to whom assets of a financial account, insurance policy, or annuity is payable. The trustee and the beneficiary can be the same person.

Executor: An individual or a trust institution nominated in a will and appointed by a court to settle the estate.

Fiduciary: An individual or a trust institution charged with the duty of acting in the best interest of another party. Examples: trustees, executors and administrators.

Grantor: A person who creates a trust, such as a living trust, to become operative during his lifetime; also called donor, settlor, and trustor.

Irrevocable Trust: A trust that cannot be revoked by the settlor.

Probate (Verb): To present a will to the court for appointment of the executor or administrator.

Probate (Noun): Process of transferring title from a deceased person to their heirs at law.

Power of Attorney: A document authorizing the person named to act as agent, on behalf of another.

Revocable Trust: A trust that may be terminated by the settlor.

Remainderman: A person or entity whose rights are effective upon termination of a person or entity's rights.

Successor Trustee: A trustee following the original or a prior trustee.

Trust: A fiduciary relationship in which one person (the trustee) is the holder of the legal title to the trust property and the other person (beneficiary) retains a beneficial interest in the trust property.

Trustee: An individual or a trust institution which holds the legal title to property for the benefit of someone else.

Will: A legally enforceable declaration of a person's wishes in writing regarding matters to be attended to after his or her death.

Definitions are provided for informational purposes only and are not intended as legal advice. BECU Trust Services is a trade name used by MEMBERS(R) Trust Company under license from BECU. Trust services are provided by MEMBERS(R) Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and investment products are not deposits of or guaranteed by the trust company, a credit union or credit union affiliate, are not insured or guaranteed by the NCUA, FDIC or any other governmental agency, and are subject to investment risks, including possible loss of the principal amount invested.