Getting Comfortable With Estate Planning Terminology

by | Jan 22, 2021 | Estate Planning | 0 comments

Estate planning words and keyboardSome people feel uncomfortable meeting with an attorney to discuss their estate planning needs because of an unfamiliarity with the law. A good lawyer will discuss your available options in simple terms that a person with no legal training can comprehend.

You can also relieve some of that hesitancy by familiarizing yourself with legal terminology before meeting with a qualified estate planning attorney to discuss the appropriate choices for you. The following is a short list of common legal terms that may come up in an estate planning meeting. Take just a few minutes to familiarize yourself with this list and keep it handy for future reference.

Attorney-in-Fact:

A person who is named under a Power of Attorney to act on behalf of another person.  Also commonly reviewed to as an “agent” or “power of attorney.”

Beneficiary:

A person or entity that receives a benefit from an estate, trust, or asset transfer vehicle.

Death Probate:

The legal process used to assemble and transfer a decedent’s probate assets to the intended beneficiaries and settle a decedent’s outstanding debts.

Decedent:

A person who has passed away.

Estate:

All the assets owned by a decedent upon his or her death.

Executor/Administrator/Personal Representative:

The person responsible for settling a decedent’s estate.

Grantor:

A person who transfers an asset to another person or entity, such as in a real estate deed.

Grantor (Trust):

A person who creates a trust. (Also sometimes called a “trustor” or “settlor.”)

Guardian of the Person:

A court-appointed supervisor in charge of the care of a minor or incompetent person’s physical well-being.

Guardian of the Estate:

A court-appointed supervisor in charge of the care of a minor or incompetent person’s financial well-being.

Irrevocable Trust:

A trust in which the trustor has not reserved the right to revoke and cannot change the wording in the trust.

Living Trust:

A trust established and operating during the trustor’s lifetime.

Nonprobate Asset:

An asset of a decedent that is owned by a trust, is in joint name with another individual, or has a beneficiary designation.

Probate Asset:

An asset in a decedent’s sole name, with no beneficiary designation.

Revocable Trust:

A trust in which the trustor reserves the right to revoke.

Special Needs Trust:

A trust typically established for a disabled individual who receives needs-based public benefits.

Testator:

The creator of a will.

Trust:

A legal arrangement in which the Grantor transfers assets to the Trustee and creates instructions for the Trustee to following in using such assets for a beneficiary.

Trustee:

A person or entity named in a trust agreement to be responsible for holding and administering the trust assets according to the terms of the trust.

Will:

A legal document used to transfer probate assets upon a decedent”s death.

To get started with you estate plan, contact us today at 317-622-8181 or www.stinsonalawfirm.com