Top 7 Estate Planning Terms You Should Know

Estate planning can be complex and confusing. However, once you understand more about what it entails, the less overwhelming it will be. While it may seem overwhelming to begin, creating a thorough estate plan can ultimately help you safeguard your loved ones and your legacy.

But where do you start?  

What is most important?  

And what do all those estate planning terms mean?  

These top seven estate planning terminology can help you understand how to manage the process. And when you are ready to put a plan into action, call Elaine McGinnis P.A. to start drafting your estate planning documents today.  

The Top 7 Estate Planning Terms  

Beneficiary 

A beneficiary is a person or charitable organization that you name to benefit from some or all of your estate. You can name beneficiaries for many types of accounts and circumstances including: 

• IRAs and other retirement plans 

• Life insurance policies 

• In your will and trust documents  

Without beneficiaries, there is no directive as to who should get the assets in your estate. If you don’t name beneficiaries, your estate may wind up in a timely court proceeding called probate.  

Probate 

Probate is a court proceeding to admit a will, notify creditors, and distribute assets. If you don’t have a will, your property is distributed pursuant to Florida law. 

Properly setting up your estate plan can drastically reduce how complicated the process will be and often helps your loved ones to avoid probate altogether.  

While You’re Here> Avoiding Probate  

Durable Power of Attorney 

 If you become disabled or unable to make choices for yourself, a durable power of attorney gives someone else the power to act on your behalf and handle your finances or medical care.

Healthcare Directive 

A healthcare directive is also known as a living will, and it states your personal preferences regarding your future medical care or end-of-life decisions. It can include directives for: 

• Medical interventions 

• Organ donation 

• HIPPA release  

You can also appoint an agent to make medical decisions on your behalf within this document. When you include a healthcare directive or living will in your estate plan, you can ensure that your wishes are known and honored in the event of your incapacity.  

Trust 

A trust is an estate planning document that involves a trustor, a trustee, and beneficiaries. The trust is set up by the trustor and gives a trustee authority to manage assets on behalf of any named beneficiaries.  

The type of trust that is best for you will depend on the amount of your estate, your ambitions, and the legacy you wish to leave behind.

Learn More > The Importance of a Trust  

Will 

A will directly states how you want your property and assets distributed after you pass away. Also, you can designate a personal representative, a guardian for your young children, and your preferences for the final disposition.

At the very least, you should make sure that you have a valid will in place.  

Read More> What Should be Included in Your Will? 

Testator 

A testator is a person who is drafting and owns a will. As the testator, you are the most important part of your estate plan.  

Plan Your Estate Today  

If you are ready to start planning your estate, choose Elaine McGinnis for peace of mind throughout the entire process. Elaine will compassionately ensure that all your wishes and goals are outlined in your trust, will, and other estate planning documents, helping your family avoid probate in the future.  

Now is a great time to start planning your estate. Contact the Law Office of Elaine McGinnis P.A. today; 813-851-3380.