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Estate Planning Terms You Should Know

Estate planning is one of the most necessary, and yet procrastinated, parts of life. No one wants to think about their death. But estate planning can give you peace of mind that your assets and property are going where you would like them to. It reduces family disagreements and makes things easier on the people you love after your death.

When you decide to begin your estate planning, you are sure to come across some terms that you are unfamiliar with. It can be a complicated and sometimes difficult process, which is why we always recommend speaking with an attorney during your estate planning.

In this blog post, we are going to discuss some common terms that you will hear while estate planning. Continue reading to learn more and when you’re ready to start estate planning in Sacramento or the surrounding area, contact the experienced team at Jess Legal.

Beneficiary

The beneficiary is the person who will receive the property or benefits from a will or trust.

Irrevocable Trust

An irrevocable trust cannot be changed, revoked, modified, or amended by the grantor. Irrevocable trusts may be able to help the beneficiaries avoid some estate tax.

Estate Planning

Estate planning is when an individual creates a will, trust, or another type of agreement that describes how their property and assets will be distributed after their death.

Estate Tax

Estate tax is a tax paid by the descendants or beneficiaries during the transfer of property after a death.

Executor

An executor, sometimes referred to as a personal representative, is the individual that is named in a will and appointed by the court to carry out the terms of the will.

Fiduciary

A fiduciary can be an individual, bank, or trust company that is assigned to manage money or property for the best interest of the beneficiary.

Living Trust

A living trust is a trust created during an individual’s lifetime.

Power of Attorney

Power of attorney is when an individual is given authority by a written, legal document to act in another place as agent or attorney-in-fact in either some or all legal matters depending upon what is specified in the document.

Probate

Probate is the court process in which a will is authenticated and property is distributed under the terms of the will or in accordance with state law if there is no will.

Revocable Trust

A revocable trust is created during a person's lifetime and can be changed, revoked, modified, or amended by the grantor. A revocable trust does not help you avoid estate tax.

Trust

A trust is an arrangement where property or assets are managed by a trustee or fiduciary for the benefit of the beneficiary.

Trustee

A trustee, also known as a fiduciary, can be an individual, bank, or trust company that is designated to administer trust property or assets to the beneficiary.

Will

A will is a legal declaration that explains your wishes for your property or estate after your death. It names your beneficiaries as well as the one responsible for distributing your assets.

Hire Jess Legal for Your Estate Planning Needs

If you live in Sacramento or the surrounding area and are ready to start estate planning, the law team at Jess Legal can help. Contact us today for assistance with estate planning.

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