An estate plan helps protect your assets and your loved ones, even after you have passed away. While you may understand the importance of estate planning, there are many additional terms and jargon that can get confusing.
In each Davidson Law Glossary article, we explain the details and address common questions, so you can have the info to make the best decisions for your situation. If you have more questions or you need an experienced estate planning attorney on your side, consult with the Davidson Law Group today.
What Is Estate Planning?
Estate planning is the process of organizing one’s property and affairs during one’s lifetime. This process works to minimize income taxes and effectively manage the estate, so it is ready to be passed on to the next generation.
What Does an Estate Plan Include?
An estate plan introduces documents with your instructions for who will control your estate and how it is to be managed in the event of your passing. Estate plans may contain the following:
- Last Will and Testament
- Revocable Living Trust
- Powers of Attorney
- Transfer Document
- Business Assignment (if the client owns a business)
- Trust Transfer Grant Deed(s)
Assets are the valuable property that a person or company owns. Individual assets include all property labeled in the decedent’s name, such as stocks, bonds, bank accounts, vehicles, boats, real estate, and more.
A fiduciary (aka trustee) is a person who acts on behalf of another person to manage their estate. This person typically takes care of money or other assets for someone else. A fiduciary has a legal duty to act in the person’s best interest.
A beneficiary, also known as an heir or recipient, is an individual who obtains the benefit from a will or trust. These documents specifically name beneficiaries, or they have met the requirements to be eligible for distribution.
The executor, also known as a personal representative, is named to carry out all tasks and deal with the conditions of your estate. After filing a person’s will, the probate court will nominate the executor.
Safeguard Your Family Assets with Estate Planning
At the Davidson Law Group, we create meaningful relationships with our clients, and we want to help you secure what you have gained throughout your lifetime. Our estate planning attorneys offer flexible, resilient plans to benefit you no matter your situation. If you are ready to begin arranging your estate plan, contact the Davidson Law Group today to schedule a free consultation.