Glossary Archive

Overview Ancillary Probate refers to a secondary probate process that occurs in a jurisdiction outside of where a deceased person (the decedent) was primarily domiciled. This process is initiated to manage and distribute assets located in that jurisdiction, which may not be covered by the primary probate proceedings. Detailed Explanation When a decedent passes away,...

An Antenuptial Agreement, also known as a prenuptial agreement or prenup, is a legally binding contract created by two individuals prior to their marriage. This agreement outlines the distribution of assets and financial responsibilities in the event of divorce or separation, as well as other matters such as spousal support. The primary purpose of an...

An Anti-Lapse Statute is a legal provision that prevents a gift in a will or trust from failing if the intended beneficiary predeceases the testator (the person who made the will). Instead of the gift lapsing, meaning it would become void and not be distributed, the statute allows the gift to pass to the descendants...

Apparent Authority in Contracts Overview: Apparent authority refers to a situation in which a third party reasonably believes that an individual has the authority to act on behalf of another party, typically in a contractual context, even if that individual does not have actual authority. Detailed Explanation: Apparent authority arises when a principal (the party...

Appeal Rights in Arbitration Overview Appeal rights in arbitration refer to the legal options available to parties involved in an arbitration process to challenge or seek review of an arbitrator's decision or award. Unlike traditional court decisions, which can be appealed to higher courts, arbitration decisions are generally final and binding, with limited grounds for...

Appellate Arbitration Review In the context of legal proceedings, Appellate Arbitration Review refers to a process in which a higher court reviews the decision made by an arbitrator or an arbitration panel. This process is generally limited in scope, focusing on whether the arbitration was conducted in accordance with the law and whether the arbitrator(s)...

The Applicable Credit Amount refers to a specific tax credit that can be claimed against the federal estate tax liability of a decedent's estate. This credit effectively reduces the amount of estate tax owed by the estate, thus allowing beneficiaries to receive more of the estate's value. The Applicable Credit Amount is based on the...

The Applicable Exclusion Amount refers to the specific dollar amount that an individual can transfer to others without incurring federal gift or estate taxes. This amount is crucial in the context of estate planning, as it allows individuals to minimize tax liability on their wealth during their lifetime and after death. Under the current federal...

An Appointment Clause is a provision typically found in a will or trust document that grants the creator of the document (the testator or grantor) the authority to designate individuals or entities to receive specific assets or benefits upon their death or during the administration of the trust. This clause plays a critical role in...

Appraisal Contingency Clause An appraisal contingency clause is a provision typically included in a real estate purchase agreement that allows the buyer to back out of the transaction if the property does not appraise for a specified amount. This clause is designed to protect the buyer by ensuring that they are not obligated to proceed...