I have found some new clients are a little intimidated by all the legal jargon associated with estate planning. While legal terminology is not as complex as, say, being faced with a medical specialist who tosses out a variety of “isms” and prefixes and suffixes like “dys,” “endo,” “erythr,” and “ectomy,” I know it can still be a little daunting. I make it a point to explain everything when we meet, but I hope the following will help increase your comfort level even before we meet.
Will: A legal document that communicates how an individual wants their assets distributed after they die.
Trust: There are various types of trusts, but a basic definition is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries.
Beneficiary: A person on an entity (like a charity) designated to receive assets or benefits from a will, trust, insurance policy, or retirement account.
Executor: When there is a will, it is the individual named in that will to carry out the deceased person’s wishes as well as manage the estate’s distribution. When there is no will, the executor may be appointed by the court; in this case, the person is referred to as the administrator.
Intestate: This is a term to describe the situation when an individual has died without having a will.
Probate: The legal process of validating a will if there is one. If there isn’t, their involvement is greater in scope, including deciding how property is distributed and even determining guardianship for minor children.
Living Will/Advance Directives: Legal documents that communicate one’s wishes should they become incapacitated or are in a medical state with no reasonable hope of recovery.
Power Of Attorney: Another legal document that grants someone the authority to act on behalf of another person in legal, financial, or health matters.
These are the basics, and of course, like any profession, many more may come into play depending on the circumstances. This simple list is an excellent example of why working with an experienced estate planning attorney like me is so important. Things can sometimes become very complex, and only by consulting with a knowledgeable estate planning attorney can one be sure their estate plan is not only appropriate for them but clearly stated, not open to interpretation, and will meet all the legal requirements. If you don’t have a will or need to make updates, please call me to schedule a consultation. Call me at 513-399-7526 or visit my website, www.davidlefton.com, for more information.