A contract is a legally enforceable agreement between 2 or more parties. It’s formed when key elements like offer, acceptance, and consideration are present, creating duties the law can enforce. This article explains the basics, common examples, and when a contract becomes binding. Understanding the Basics of Contracts A contract is simply an agreement between […]
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What is an offer?
An offer is a definite proposal by an offeror that creates the power of acceptance in the offeree and can form a contract when accepted. It must show clear intent to be legally bound and include reasonably certain terms. This article explains the basics of offers, key elements, and how they differ from invitations to […]
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What is a spendthrift trust?
A spendthrift trust is an estate planning trust that restricts distributions and generally prevents most creditors from reaching a beneficiary’s trust interest. A trustee controls when and how funds are paid out, helping protect inheritances from poor money management and creditor claims. This article explains how it works, key benefits, and common limitations. A spendthrift […]
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What is conservatorship?
A conservatorship is a court-ordered arrangement that appoints 1 conservator to manage the personal and/or financial affairs of an adult who can’t do so safely. It’s typically used when illness, disability, or age-related decline prevents informed decision-making and requires court oversight. This article explains how conservatorships work, who can petition, and key alternatives. A conservatorship […]
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What is a special needs trust?
A special needs trust is a trust that holds assets for a person with a disability so they can keep means-tested benefits like SSI and Medicaid. It lets funds pay for supplemental needs (e.g., therapies, education, transportation) without being counted as the beneficiary’s resources. This article explains how special needs trusts work, common funding sources, […]
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What is a codicil?
A codicil is a written legal amendment to an existing will that changes, adds, or revokes specific provisions without replacing the entire document. It must generally be executed with the same formalities as a will—such as proper signing and witnessing—to be valid under state law. This article explains what a codicil is, when to use […]
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What is an undue influence claim?
An undue influence claim alleges that someone used manipulation or pressure to override another person’s free will—often affecting a will, trust, or major financial decision. It commonly arises when a vulnerable person is isolated or dependent and a trusted individual benefits unexpectedly. This article explains the legal elements, red flags and evidence, who can file, […]
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What is a holographic will?
A holographic will is a will written and signed in the testator’s own handwriting, and in many states it can be valid without witnesses. It’s often used in emergencies, but strict rules about handwriting, signature, and clear intent determine whether a court will accept it. This article explains how holographic wills work, which states recognize […]
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What is a gift tax?
Gift tax is a federal tax that may apply when you give someone more than the annual exclusion amount—$18,000 per recipient in 2024—though most people owe $0 because of the lifetime exemption. In many cases, you still must file IRS Form 709 to report gifts above the limit, even if no tax is due. This […]
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What is estate tax?
Estate tax is a federal tax on the transfer of a person’s assets at death, and in 2025 it generally applies only to estates above the federal exemption (about $13.6 million per person). Some states also impose their own estate or inheritance taxes with lower thresholds. This article explains how estate tax works, what counts […]
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What is an inheritance tax?
Inheritance tax is a state tax some beneficiaries may owe on inherited money or property, and only a handful of U.S. states currently impose it. The rate and exemption depend on where the deceased lived and your relationship to them, with spouses often exempt and more distant heirs paying more. This article explains how inheritance […]
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What is a beneficiary?
A beneficiary is a person or entity you legally name to receive assets, money, or other benefits, often upon your death. Beneficiaries can be designated in wills, trusts, life insurance policies, retirement accounts, and payable-on-death accounts. This article explains beneficiary types, how designations work, and common mistakes to avoid. A beneficiary is a person or […]
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