Important Terms to Know

Conservator:
A person who has the legal authority to manage the property and financial affairs of a protected person during the period of his or her disability. A person who is appointed by a court to manage the estate of a protected person.

Deposited Will - A testamentary instrument may be filed for safekeeping with the court in the county of residence by the testator during his/her lifetime. A will that is deposited is filed while the testator is alive.

Durable General Power of Attorney:
A power that remains in effect in spite of and throughout the principal's incapacity.
Medical Power of Attorney:
A power of attorney that takes effect upon the principal's incapacity and designates a substitute decision-maker for healthcare matters.

Estate Tax ("Death" Tax):
A progressive tax imposed on the transfer of property at the time of death. The basic federal estate tax exclusion for 2005 is $1.5 million. This exclusion is scheduled to rise to
$2 million next year (2006) and continue at that level in 2007 and 2008. In 2009, the exclusion is set to rise to $3.5 million. In 2010, the estate tax is set to disappear completely, but only for that year. In 2011, the estate tax returns. with an exemption level of $1 million.

In addition to the exclusion amount of $1.5 million, all transfers to a spouse are exempt from the federal estate tax. Accordingly a married couple in 2005 can transfer a total estate of $3 to their children with no estate tax liability.

Note, however, that the exception levels and rate schedule of the estate tax are likely to change drastically during the current Congressional session. The U.S. House of
Representatives has already voted to completely repeal the estate tax and the Senate is
working on a bipartisan compromise with increased exemption levels and lowered rates.

Guardian:
A person appointed by a court to exercise authority over another person's physical concerns. Including place of abode and medical treatment. A person who has qualified as a guardian of a minor or incapacitated person pursuant to testamentary or court appointment.

Formal Proceedings - proceeding conducted before a judge with notice to interested person.

Informal Proceedings - those conducted without notice to interested persons by an officer of the court acting as a registrar for probate of a will, appointment of a person representative, or determination of a guardian under sections 15-14-202 and 15-14-301 C.R.S.

Living Will:
A document by which a person directs that his or her life not be artificially prolonged by extraordinary measures when there is no reasonable expectation of recovery from extreme physical or mental disability.

Lodged Wills - Testamentary instrument of a deceased person is filed with the court in decedent's county residence within 10 days of death of testator. A will that is lodged is filed after the testator has died.

Personal Representative:
A person who settles and distributes the probate estate of a deceased person in accordance with the terms of a probated will or in accordance with the rules of descent and distribution in the Colorado Revised Statutes.

Power of Attorney:
An instrument whereby a person (the "principal") grants another (the "agent") the authority to act for and in the place of the principal. Generally, powers of attorney automatically terminate upon the death or incapacity of the principal and an agent cannot make medical decisions for the agent. (Two exceptions: a durable power of attorney and a medical power of attorney).

Probate:
The procedure by which a will is proven to be the testator's valid directions. Also refers to the administrative process by which the deceased person's assets are collected, valued and either distributed or liquidated. taxes are calculated and paid, and claims of creditors are adjudicated and settled.

Probate Estate:
Probate Estate refers to all assets (i.e.: real estate. personal property, cash, stocks) and liabilities (i.e.: mortgage, credit cards. loans) that a person owns or owes at death.

Proxy Decision Maker:
In Colorado, a substitute decision maker will be recognized by a Dr. or hospital to make medical treatment decisions when no guardian with medical decision-making authority, agent appointed in a rnedical durable power of attorney, or other known person has the legal authority to provide such consent or refusal on the patient’s behalf and the attending medical physician determines that a patient lacks the decisional capacity to provide informed consent to or refusal of medical treatment.

Testator - includes an individual of either sex.

Trust - When one person (trustee) holds property at another person’s (settlor’s) request for the benefit of someone else (the beneficiary). A legal relationship whereby property (the "corpus") is given by a person or entity (the "settlor"), to another person or entity (the "trustee") to hold for the benefit of a third party (the beneficiary").

Will:
A document that takes effect upon death, by which a person (the "testator") directs the distribution of his or her probate estate and appoints a "personal representative" to carry out these directions.

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	Important Terms to Know Conservator: A person who has the legal authority to manage the property and financial affairs of a protected person during the period of his or her disability. A person who is appointed by a court to manage the estate of a protected person. Deposited Will - A testamentary instrument may be filed for safekeeping with the court in the county of residence by the testator during his/her lifetime. A will that is deposited is filed while the testator is alive. Durable General Power of Attorney: A power that remains in effect in spite of and throughout the principal's incapacity. Medical Power of Attorney: A power of attorney that takes effect upon the principal's incapacity and designates a substitute decision-maker for healthcare matters. Estate Tax ("Death" Tax): A progressive tax imposed on the transfer of property at the time of death. The basic federal estate tax exclusion for 2005 is $1.5 million. This exclusion is scheduled to rise to $2 million next year (2006) and continue at that level in 2007 and 2008. In 2009, the exclusion is set to rise to $3.5 million. In 2010, the estate tax is set to disappear completely, but only for that year. In 2011, the estate tax returns. with an exemption level of $1 million. In addition to the exclusion amount of $1.5 million, all transfers to a spouse are exempt from the federal estate tax. Accordingly a married couple in 2005 can transfer a total estate of $3 to their children with no estate tax liability. Note, however, that the exception levels and rate schedule of the estate tax are likely to change drastically during the current Congressional session. The U.S. House of Representatives has already voted to completely repeal the estate tax and the Senate is working on a bipartisan compromise with increased exemption levels and lowered rates. Guardian: A person appointed by a court to exercise authority over another person's physical concerns. Including place of abode and medical treatment. A person who has qualified as a guardian of a minor or incapacitated person pursuant to testamentary or court appointment. Formal Proceedings - proceeding conducted before a judge with notice to interested person. Informal Proceedings - those conducted without notice to interested persons by an officer of the court acting as a registrar for probate of a will, appointment of a person representative, or determination of a guardian under sections 15-14-202 and 15-14-301 C.R.S. Living Will: A document by which a person directs that his or her life not be artificially prolonged by extraordinary measures when there is no reasonable expectation of recovery from extreme physical or mental disability. Lodged Wills - Testamentary instrument of a deceased person is filed with the court in decedent's county residence within 10 days of death of testator. A will that is lodged is filed after the testator has died. Personal Representative: A person who settles and distributes the probate estate of a deceased person in accordance with the terms of a probated will or in accordance with the rules of descent and distribution in the Colorado Revised Statutes. Power of Attorney: An instrument whereby a person (the "principal") grants another (the "agent") the authority to act for and in the place of the principal. Generally, powers of attorney automatically terminate upon the death or incapacity of the principal and an agent cannot make medical decisions for the agent. (Two exceptions: a durable power of attorney and a medical power of attorney). Probate: The procedure by which a will is proven to be the testator's valid directions. Also refers to the administrative process by which the deceased person's assets are collected, valued and either distributed or liquidated. taxes are calculated and paid, and claims of creditors are adjudicated and settled. Probate Estate: Probate Estate refers to all assets (i.e.: real estate. personal property, cash, stocks) and liabilities (i.e.: mortgage, credit cards. loans) that a person owns or owes at death. Proxy Decision Maker: In Colorado, a substitute decision maker will be recognized by a Dr. or hospital to make medical treatment decisions when no guardian with medical decision-making authority, agent appointed in a rnedical durable power of attorney, or other known person has the legal authority to provide such consent or refusal on the patient’s behalf and the attending medical physician determines that a patient lacks the decisional capacity to provide informed consent to or refusal of medical treatment. Testator - includes an individual of either sex. Trust - When one person (trustee) holds property at another person’s (settlor’s) request for the benefit of someone else (the beneficiary). A legal relationship whereby property (the "corpus") is given by a person or entity (the "settlor"), to another person or entity (the "trustee") to hold for the benefit of a third party (the beneficiary"). Will: A document that takes effect upon death, by which a person (the "testator") directs the distribution of his or her probate estate and appoints a "personal representative" to carry out these directions.
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