Key Estate Planning Terms to Know
Administrator
An administrator is the person who is appointed by the court to manage the estate of someone who has died without a will.
Beneficiary
Anyone who is designated to receive some or all of your assets in your will, proceeds of a trust, an insurance policy or your retirement plan.
Charitable Trust
Any trust that is established with a charitable organization as the beneficiary.
Estate Tax
Taxes that must be paid out of the estate’s assets.
Executor
The person who is appointed to carry out the provisions of a will.
Gift Tax
Taxes that are paid by the person making the gift rather than the recipient.
Guardian
An individual who is appointed in a will to provide care for children or for any other person who is unable to take care of his or her own affairs.
Heir
Someone entitled to inherit a portion of the estate of a person who died intestate.
Intestate
To die without a will.
Life Insurance Trust
A trust designed with the proceeds of a life insurance policy as the principal.
Living Trust
A trust that goes into effect while the creator is still living.
Power of Attorney
A document that authorizes someone to act as your agent.
Probate
Proving the validity of a will.
Trust
A legal arrangement in which property is transferred to and managed by a person or institution to benefit another person.
Will
A legal document that explains how property and other assets will be distributed after a person’s death.
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