Common Estate Planning Terms

Understanding a few key terms can make your planning process easier. Here are some of the most common:

Trust: A legal arrangement where assets are held and managed for the benefit of another person. 

Trustee: A person or institution responsible for managing the trust and carrying out its terms. 

Beneficiary: The person or organization who receives assets or benefits from a trust or estate. 

Grantor (or Settlor): The person who creates the trust and transfers assets into it. 

Executor (Personal Representative): The person responsible for carrying out the instructions in a will.

Estate: Everything a person owns at the time of their death.

Probate: The legal process of setting an estate and distributing assets after death.

Living Trust: A trust created during your lifetime to manage assets and help avoid probate.

Power of Attorney: A document that allows someone to make financial or legal decisions on your behalf.

Advance Directive (Healthcare Directive): A document outlining your medical wishes and naming someone to make healthcare decisions if you are unable.

Distribution: Payments or assets given to beneficiaries from a trust or estate.

Fiduciary: A person or institution legally required to act in the best interest of another (such as a trustee or executor).