Terminology of Estate Planning Law Explained

There are a myriad of reasons that people are reluctant to discuss end of life issues and estate planning. The vernacular of estate law should not be one of those impediments. These layman’s definitions of estate planning terms should lead to a better understanding of this area of the law that is critical in planning for the future of your loved ones after you have passed.

• Estate Planning– Estate planning is a strategy using various legal means, including Wills, Trusts, Powers of Attorney, health care proxy, and other legal documents to make sure your wishes are carried out in the event of your death or incapacity. A good Estate Plan will ease the burden of transferring property, with less legal and tax liabilities to your heirs
• Assets– The property of the Estate; real estate, household furnishings, bank accounts, insurance policies, investments, jewelry, art, and collectibles are some of the items that make up an estate. Often there is a distinction made between real property; cash and real estate; and personal property, jewelry, art and the like.
• Heir– A person who by law is entitled to all or part of an Estate.
• Beneficiaries– The person or organization that receives the assets from an Estate, Trust, or insurance policy after the originator of the document or policy has died.
• Executor– Sometimes referred to as a Personal Representative, an Executor is a person named in a Will and appointed by the court to see that the dispersal of assets and other instructions in the Will are carried out according to the author’s wishes.
• Inheritance– The assets an heir or beneficiary receives when someone dies.
• Will– A written document enforceable only through the probate court that leaves instructions for distributing your assets after you are gone. A Will can also designate a guardian for any minor or incapacitated dependents. The Executor of the Estate should also be appointed in the Will.
• Guardian/Conservator– Appointed by the court, a guardian or conservator acts on the behalf of minor children or others who are physically or mentally incapacitated. In some jurisdictions a conservator is charged with overseeing property while a guardian is tasked with the welfare of a person.
• Intestate– To be “intestate” is to die with out an enforceable Will. In this case, the probate court, according to the state’s intestacy statutes, will distribute the assets of your Estate.
• Probate– The legal process that validates a Will and settles an Estate, paying debts and dispersing the Estate’s remaining assets. Certain bank accounts, Trusts, insurance and other assets that designate a beneficiary are generally not administered through the probate process.
• Trust– A legal document that holds and allows for control of assets, for the benefit of another person or organization.

A better understanding of the language of Estates should ease the trepidation felt by some people when estate planning matters are discussed. Blake Harris Law offers quality legal services in a caring environment and is always eager to assist in your estate planning needs.