Glossary of Estate Planning
Advance Directive: An Advance Directive, often referred to as a living will, is a legal document that outlines an individual’s preferences for medical treatment and end-of-life care. It allows individuals to specify the medical interventions they do or do not want in specific situations.
Business Succession: Business Succession Planning is figuring out who you are, what are your big risk factors in terms of what happens to ownership if somebody passes away or somebody leaves, and then developing a plan that’s going to solve each one of those problems proactively.
Deed: A deed is a legal document that officially transfers ownership (title) of property, usually real estate, from a “grantor” (seller) to a “grantee” (buyer). It is a tangible proof of property rights and must be signed, delivered, and typically recorded with local government offices.
Executor: A person or institution appointed by a testator to carry out the terms of their will.
Financial Power of Attorney: The Financial Power of Attorney is a legal tool to ensure that your financial matters are managed according to your wishes, even if you cannot do so yourself.
Healthcare Power of Attorney: A Healthcare Power of Attorney is a legal document that designates someone (your Healthcare Agent) to make medical decisions on your behalf if you become unable to communicate or make decisions for yourself.
HIPAA Authorization: Your HIPAA Authorization allows you to specify who can access your health information and for what purposes. This document is necessary when health information needs to be shared for reasons including and beyond treatment, payment, or healthcare operations.
Irrevocable Life Insurance Trust (ILIT): An Irrevocable Life Insurance Trust (ILIT) is a type of irrevocable trust that holds or “owns” an insurance policy or policies. Typically, the main and sole asset of an ILIT is a new life insurance policy purchased by the trust.
Personal Representative: The terms “Personal Representative” and “Executor” mean the same thing. This is an individual or corporate entity that you appoint to be in charge of going to court, opening a probate (a mini lawsuit), and submitting your Will to a judge after you pass away.
Pour-Over Will: A Pour-Over Will acts as a safety net in case something is left out or forgotten from a trust. It will pour those assets into the trust so it can be governed by those rules and regulations.
Registered Agent: A Registered Agent is an individual or business entity designated to receive legal documents on behalf of your LLC. Essentially, the Registered Agent serves as a point of contact between your LLC and the government, ensuring that you stay informed about important legal and administrative matters.
Successor Trustee: A Successor Trustee is the individual or entity responsible for managing a trust when the original trustee is unable or unwilling to continue doing so themselves.
Trust: A Trust is a legal arrangement where a trustee holds and manages assets for the benefit of named beneficiaries according to the grantor’s specific instructions. It allows for asset control during and after life, bypasses probate, provides privacy, and can offer tax advantages or protect assets from creditors.
Trust Advisor: A Trust Advisor is a person or entity appointed to oversee and guide the administration of a trust. Your trust advisor needs to be an independent third party – they may not be a minor or anyone who could potentially be a beneficiary or trustee of your trust.
Will: A Will is a legal document that specifies how you want your property and assets distributed, who will care for minor children, and who will manage your estate after your death, ensuring your wishes are followed instead of state law. It appoints an executor to manage the process, pay debts, and distribute assets, while also naming guardians for children and handling specific bequests.