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The estate planning process doesn’t need to feel overwhelming. While legal terminology can sometimes create confusion, understanding the basic vocabulary empowers you to make informed decisions about your future. This guide breaks down essential estate planning terms into easy-to-understand language.
Administrator – A court-appointed individual responsible for managing and distributing the estate when someone dies without a will
Advance Health Care Directive – Written instructions specifying your preferences for medical treatment in the event you become unable to communicate these decisions yourself
Beneficiary – A person or entity designated to receive assets or property from an estate, trust, or financial account
Caveat – A formal objection filed to prevent a will from being probated, often initiating a will contest
Codicil – A formal amendment to an existing will that modifies, explains, adds to, or revokes provisions without rewriting the entire document
Durable Power of Attorney – A legal document that gives someone the authority to make financial decisions for you if you become incapacitated
Estate – Everything you own at death, including real estate, financial accounts, personal belongings, and digital assets
Executor – The person you name in your will to carry out its provisions, including distributing assets and paying final debts and taxes
Fiduciary – Anyone acting in a position of trust and confidence, legally obligated to act in the best interest of another (includes executors, administrators, and trustees)
Guardian – A person legally appointed to care for minors or incapacitated adults if parents or current caregivers cannot
Heir – A person legally entitled to inherit assets when someone dies without a will
Intestate – Dying without a valid will, which means state laws determine who inherits your assets
Issue – All direct descendants (children, grandchildren, great-grandchildren, etc.)
Living Trust – A legal arrangement created during your lifetime that allows assets to be managed by a trustee for your benefit during life and transferred to beneficiaries at death, typically without court involvement
Marital Assets – Property acquired during marriage, typically subject to division in divorce or included in estate planning for spouses
Per Stirpes – Distribution method where if a beneficiary dies before the testator, that beneficiary’s share passes to their descendants
Personal Property – Movable possessions like furniture, vehicles, jewelry, and collectibles
Probate – The court-supervised process of validating a will, settling debts, and distributing assets according to the will or state law
Real Property – Land and anything permanently attached to it, including homes and other buildings
Refunding Bond and Release – A document signed by beneficiaries acknowledging receipt of their inheritance and agreeing to return funds if needed to pay estate debts
Surety Bond – An insurance policy protecting beneficiaries against losses caused by an executor’s or administrator’s failure to manage estate assets properly
Surrogate’s Certificates – Official documents (sometimes called Letters Testamentary) that grant an executor legal authority to act on behalf of the estate
Trustee – A person or institution responsible for managing assets held in a trust according to the trust’s terms
Will (Last Will and Testament) – The legal document outlining how you want your assets distributed after death and who should manage this process
Why This Matters
Understanding these terms helps you communicate effectively with your attorney and make informed decisions about your estate plan. Proper planning protects your wishes, minimizes tax implications, and provides for your loved ones.
Estate planning documents should evolve as your life circumstances change. Major life events like marriage, divorce, births, deaths, or significant asset changes typically warrant a review of your estate plan.
At Bozanian McGregor LLC, our experienced estate planning attorneys can guide you through creating a comprehensive plan that protects what matters most. Contact us today for a confidential consultation and gain peace of mind knowing that your legacy is secure.