Sometimes we forget that while on a day-to-day basis we work with estate planning, most people aren’t exposed to estate planning terminology and do not fully understand the difference between a trustor and trustee or a trust and a will. Below some basic descriptions of terms commonly used when you create your estate plan:
- Amendment – a document changing a portion of a trust
- Assets – anything you own including but not limited to real property, bank accounts, life insurance, and personal property
- Beneficiary – the recipient of the assets
- Codicil – a document changing a will
- Executor – in charge of administering a will; also known as a personal representative
- Executrix – female version of executor
- Irrevocable – no changes can be made to the document
- Restatement – a document completely revising a trust; it revokes prior the trust and its amendments.
- Revocable – changes can be made to the trust by its trustor
- Testator – the creator of the Will
- Trust – an agreement that holds assets
- Trustee – the manager of the trust
- Trustor – the creator of the trust; also known as a grantor or settlor
For more detailed definitions of estate planning terminology or to find out what other terms you may need to know, it’s helpful to go to your internet browser and search “estate planning terminology”.