Many people are uncomfortable talking about a time when they are no longer here or a time that they are not able to provide for themselves. Talking about the inevitable takes away the fear though, and the conversation becomes a bit easier when we know the language. Let us take a look at some common documents and terms in estate planning to help demystify and provide ease.
1. Will. A document that allows you to leave instructions for what you want to happen to your belongings when you pass away. This can cover things like your real estate and personal items. It can also cover who would take care of children in the event of your passing. You can even include instructions about how you wish to be remembered and how you wish for your final remains to be handled.
2. Trust. A private document, that can dictate what happens to things you own while you are living or after you are gone, like a Will. In order for a Trust to be able to control something, that item must be “held” by the Trust (a.k.a. titled in the Trust’s name). Trusts can offer additional financial protections. Unlike a Will, this document does not need to be filed with Court once you pass away.
3. Financial Power of Attorney. For situations where you are unavailable or unable to make decisions or act on your own behalf about financial or property matters, a Financial Power of Attorney lets someone of your choosing act on your behalf (ex. signing your taxes or entering into a contract). You can dictate when this document becomes effective.
4. Healthcare Power of Attorney. A document that takes effect when you are incapacitated or otherwise unable to make decisions about your healthcare. Via this document, you appoint someone to make healthcare decisions for you. You can give instructions about the types of things you are and are not ok with, such as the use of life-sustaining measures.
5. Agent. A person you name to act on your behalf when you are unavailable or incapacitated.
6. Executor. A person you choose to make sure your Will is followed as you detailed. This is the person the Court will direct their communications to upon your passing.
7. Trustee. A person you choose to hold and manage the items in the Trust for the benefit of the named beneficiaries. They are responsible for following and implementing the instructions in the Trust document.
8. Estate. The accumulation of things owned or titled in the name of the deceased. This includes assets, debts and personal property (Examples: house, mortgage, or jewelry).
9. Probate. The Court process required to deal with the deceased’s estate. It includes validating a Will, paying off debts, and distributing property. If there is a Will, the distribution process is guided by the wishes expressed within it. If there is no Will, the State has rules put in place by statute that guide the process.
10. Beneficiary. Someone you name as a receiver of your assets at a specific time, such as at your passing. In addition to being a beneficiary in someone’s Will, a person can also be named a beneficiary of other items by their respective controlling documents, such as life insurance policies, retirement accounts, certain bank accounts.
Estate planning has numerous tools and strategies to best fit your situation. The documents and terms above are all important in creating an estate plan that serves you and your family’s needs now and in the future. Each estate plan is different. When you want to discuss what your estate plan can look like and you have the desire to put one in place, we are ready to help you secure that peace of mind.
If you or someone you know would like to learn more about Estate Planning, our Modern Legal Team is here to help.
Please note: these educational materials are based on North Carolina and South Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Written by: Tiffany A. Byrd
Family is at the heart of everything I do, both personally and professionally. As a Family Law Attorney, I combine my passion for helping others with my unique journey—from growing up as the eldest child in a single-parent household to becoming the first attorney in my family. My experiences shaped my dedication to advocating for families in their most critical moments. Whether you’re building, protecting, or securing your family’s future, I’m here to help you find meaningful resolutions tailored to your needs.
