Estate planning is a common practice that allows for an even distribution of assets upon the author's passing through a legally binding document. Although it's usually done with an attorney's help, navigating the process may prove difficult if you don't have a basic understanding of standard terms. To ensure you're sufficiently prepared, learn more below.

Which Estate Planning Terms Do You Need to Know?

1. Beneficiary

Your beneficiaries are the people you designate in a will or trust to receive your inheritance. Listing them by name will ensure the state recognizes them as the legal recipients and provides a way to pass along your assets to them.

2. Executor

The executor is the person who handles your estate. This is someone of honorable character who will divvy up the assets according to the will's terms. It's usually a close family member or friend, but attorneys also serve in this capacity.

3. Trust

A trust is a separate account from your checking and savings where you can grow the assets you wish to pass along. This puts certain legal protections in place, such as timely distribution and lower estate taxes, and allows for an unbiased third party to manage the account for your beneficiaries.

4. Probate

Probate is the legal process that occurs once the author of a will passes on. It includes hiring a lawyer, publishing a notice, taking inventory of the assets, and using available funds to satisfy any outstanding debts. The remaining property and funds will then be given to the beneficiaries.

5. Health Care Directive

Also knows as the HCD, this provides an opportunity for the author of the will to make their wishes known regarding medical care. This usually comes into play once they're incapacitated and don't expect to recover. Decisions, such as withholding nutrition, halting treatments, and turning off life support, are commonly found in this section.

If you’re beginning the estate planning process, reach out to Cecil, Cecil & Barker, P.A. in High Point, NC. These lawyers have over 36 years of combined experience and are licensed to practice throughout the state. They recognize that every situation is unique, which is why they provide personalized, comprehensive representation to boost your chances for success. Call (336) 883-8383 to request a consultation today, or visit their website to learn more about their services.