Key Terms

ESTATE PLANNING KEY TERMS AND DEFINITIONS

 

Decedent's Estate: All real and personal property a person owns at death, subject to debt and claim payments.

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Estate: The extent and nature of a person's ownership of land or other property.

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Guardian: A person legally responsible for another's care and property due to infancy, incapacity, or disability.

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Living Will: A legally binding document stating a person's wish to refuse medical treatment under specific circumstances (terminal illness and inability to communicate).

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Medical Health Care Agent:  A person you assigned to take care of your health care matters when you are not able to.

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Power of Attorney: A document authorizing someone to act as an agent or attorney-     in-fact for the grantor.  There are two main types:

•  Durable Power of Attorney: Remains effective even if the grantor becomes incompetent (may include healthcare decisions).                

•   General Power of Attorney: Authorizes an agent to conduct business for the principal.

 

Probate: The legal process of validating a will and settling an estate.  The purpose of probate is to settle a deceased person’s debts.

 

Trust:  A legal entity with three key components:

• Trustee: Manages the trust property for the benefit of others.

• Beneficiary: The person(s) who benefits from the trust.

• Trust Property: The assets held in trust.  

Will: A legal document dictating how a person's estate will be distributed after death (also known as a Last Will and Testament).

 

This information is for educational purposes and shouldn't be considered legal advice.  It is provided by Peggy A. Miller, Esq., Law Offices of Peggy A. Miller, pam@pamlawoffice.com phone: 202-892-3990.