Some people feel uncomfortable meeting with an attorney to discuss their estate planning needs because of an unfamiliarity with the law and the legal terms. A good lawyer will discuss your available options in simple terms that a person with no legal training can understand.
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 or Agent:
A person who is named under a Power of Attorney to act on behalf of another person (Principal). A Power of Attorney is only effective while the Principal is alive.
Beneficiary:
A person or entity that receives a benefit from an estate, trust or other asset transfer.
Probate:
The legal process used to assemble and transfer a decedent's assets to the intended beneficiaries and settle a decedent''s outstanding debts.
Decedent:
A person who has passed away.
Donee:
A person or entity who receives a gifted asset from a donor.
Donor:
A person or entity who gifts an asset to another person or entity.
Estate:
All the assets owned by a decedent upon his or her death.
Executor/Personal Representative:
The person responsible for settling a decedent's estate.
Grantor/Settlor:
A person who transfers an asset to another person or entity.
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 (Conservator):
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.
Per Stirpes:
Latin for “by branch,” “by roots” or “by stalk,” is an estate planning method in a will or trust to specify that if one of your beneficiaries dies before you do, their share of your estate is divided equally among the deceased beneficiary's descendants.
Revocable Trust:
A trust in which the trustor reserves the right to revoke or change the trust.
Testator:
The creator of a will.
Trust:
A legal arrangement created to facilitate the transfer of property to a trustee for the benefit of 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 assets upon a decedent''s death.