Wordly Wise - Estate Planning Edition
Hi Planning People! Was it just me, or does anyone else remember having vocabulary books throughout school called “Wordly Wise”? This back-to-school time of year makes me think about fresh books and school supplies. *sigh* If this is a time you’re thinking about doing some estate planning, I thought I’d offer a quick vocabulary lesson so you can be ready to hit the ground running when you take the first step. Without further ado - [legal disclaimer: this blog is not legal advice nor does it establish an attorney client relationship…enjoy]
Will: Document that states where your things go when you pass, as well as who will carry out your wishes. Only takes effect when you pass;
Executor/Personal Representative: The person who carries out the wishes stated in your will;
Testamentary Trust: A trust in your will that only exists after you pass;
Trustee: Person who carries out the wishes in a trust.
Revocable Living Trust: A trust that: 1) is created while you are living and competent; 2) over which you retain control of the assets; 3) into which you presently transfer title of various assets; and 4) in which you have designated a successor trustee who will administer the assets when you are either no longer able to make decisions or have passed;
Durable Power of Attorney: Also known as a “Financial Power of Attorney.” Appoints an Agent to handle your financial affairs when you are unable to make decisions for yourself. When you pass, this document has no further effect;
Agent: The person appointed by the Durable Power of Attorney;
Health Care Power of Attorney: Document that appoints a Health Care Agent who will make medical decisions if you are unable to make decisions for yourself;
Health Care Agent: The person appointed by the Health Care Power of Attorney;
Living Will/Advance Directive: Document that states your wishes specifically regarding end-of-life decisions;
HIPAA form: Document that designates individuals to whom your protected health care information can be released;
