Estate planning can be too complex and complicated for a typical person. It involves a number of legalities and processes that can be difficult to understand.
One of the things that make estate planning look and sound intimidating is its use of jargons or highly technical terms. While an estate planning attorney will guide you all throughout the process, it still pays to know and understand the basic terms they use in the field.
Here are some of the most basic and commonly used terms in estate planning.
Administration refers to the estate distribution supervised by the court. The term is also used to describe the process wherein the executor or personal representative collects assets and pays debts and claims.
Beneficiaries are recipients of the trust assets and those who will benefit from such following the death of the grantor. This can be persons and/or organizations as named in a will or trust. Beneficiaries have “equitable title” to the trust property, according to estate planning attorneys in Salt Lake City, Christensen Young and Associates.
Certificate of Trust
Certificate of trust is a summarized version of a trust that verifies its existence. It specifies the successor trustees and the powers granted to them. It does not contain details on the assets, beneficiaries, or their inheritances.
Durable Power of Attorney
Durable Power of Attorney is a document that gives another person the full or limited legal authority and ability to be used in certain situations on your behalf. These include managing your financial dealings and making health care decisions for you.
Estate planning is the process of designing a strategy and executing a will, trust, or other similar documents. The goal is to make sure your assets are well administered after your demise. The process also includes tax and liquidity planning.
These terms may sound too technical, but a basic understanding of these things can make a difference in your real estate planning. Never hesitate to seek the help of a lawyer specializing in this area for an effective planning.