The ABC's of Estate Planning
I like to think that Jacob and I are decent at breaking down challenging or complex estate issues. However, perception is reality and we're not always successful.
We believe strong planning starts with clear understanding. Therefore, we've put together a list of terms that are helpful to know it comes to talking about your estate plan:
A
Administrator – A person the court appoints to manage a decedent’s estate when there’s no will or the will doesn’t name an executor.
Assets – Anything you own that contributes to your wealth: real estate, bank accounts, personal property, even business interests.
Assignment – A document used to transfer assets (for example from your name into a trust or other entity).
B
Beneficiary – The person(s) you name in your estate-planning documents who will receive your assets upon your death.
Burial Directives – Instructions for end-of-life wishes, such as funeral arrangements or who will manage your memorial.
C
Codicil – A legal amendment to a will.
Conservator – Someone appointed by the court to manage either the financial affairs or daily life of a person who is unable to do so themselves (such as a minor or incapacitated adult).
Custodian – A person who manages assets for someone else (especially for minors) under a court appointment or legal structure.
D
Dependent – A person financially or emotionally supported by another (for example, a child or spouse).
Decedent – A person who has died; their estate is then subject to estate-planning structures and possibly probate.
E
Estate – All the money and property owned by a person at the time of their death, including assets and liabilities.
Estate Planning – The process of preparing how your money and property will be managed and transferred after you die (or become incapacitated).
Executor – The person you name in your will to carry out your wishes: gathering assets, paying debts, distributing property.
F
Fair Market Value – The price at which a property would sell on the open market. Important for trusts, estate tax considerations, and asset transfers.
Fiduciary – A person who has the legal duty to act in the best interests of another.
G
Gift – A transfer of asset(s) from one individual to another without receiving something of equal value in return.
Grantor – The person who creates a trust (also known as the trust-maker).
Guardian – A person appointed by a court to make personal-care decisions (such as housing, medical treatment) for a minor or incapacitated adult.
I
Incapacitated – When a person can no longer make decisions for themselves (mentally, physically, temporarily or permanently).
Intestate – Dying without a valid will; your estate then is distributed according to Arkansas state law rather than your personal wishes.
L
Last Will & Testament – A document allowing you to dictate how your assets are distributed at death, name an executor, and include guardians for minor children.
Living Trust (Revocable) – A trust you create during your lifetime that can be changed or revoked; your assets are transferred into it.
P
Power of Attorney (POA) – A document granting someone the legal authority to act on your behalf.
👉 Durable / Financial POA: Authorizes management of your finances, banking, investments, paying bills.
👉 Medical POA / Healthcare Proxy: Authorizes someone to make healthcare decisions if you can’t.
Probate – The court-supervised process of distributing a decedent’s estate, validating the will if there is one, paying debts, and transferring assets.
S
Special Needs Trust – A trust designed to provide for a disabled loved one without jeopardizing their eligibility for government benefits.
Successor Trustee – The person who takes over management of a trust (and its assets) if the original trustee dies or becomes unable to serve.
Trustee – The person or entity responsible for managing the trust assets, following the trust terms, and distributing them to beneficiaries.
T
Trusts – Legal arrangements in which one person (a trustee) holds and manages assets for the benefit of others (beneficiaries) under the terms you set.
Tax Liability – The amount of tax owed by an individual or entity (estate tax, income tax, etc.).
Testamentary Intent – Your intention behind your will: that the will reflects what you want and it is legally valid.
If you’d like to explore how these terms apply to your situation or walk through your estate plan step-by-step, reach out to us for a consultation.