When you begin dealing with probate or estate planning, you will likely hear a number of legal terms that may be unfamiliar. Learning these words can help you feel more confident when working through your own plans or handling the estate of a loved one. Our Southfield, MI probate lawyer is here to walk you through this jargon so you know what to expect and how different terms affect your specific situation.
Estate
An estate is everything a person owns at the time of their death. This includes real estate, bank accounts, personal property, investments, and any other assets. Debts and taxes are also part of the estate and must be addressed during probate.
Probate
Probate is the legal process through which a court oversees the distribution of a person’s estate after they pass away. It involves validating a will, paying debts, and distributing assets to heirs or beneficiaries. If there is no will, the court applies state law to determine how property is divided.
Will
A will is a written document that sets out how a person wants their property distributed after death. It can also name guardians for minor children. For a will to be valid, it must meet certain legal requirements.
Intestate
When someone dies without a valid will, they are said to have died “intestate.” In that situation, state law decides who inherits their property, typically starting with the closest relatives.
Beneficiary
A beneficiary is the person or entity named to receive assets from a will, trust, life insurance policy, or retirement account. Beneficiaries may be family members, friends, or even charities.
Executor/Personal Representative
The executor, sometimes called a personal representative, is the person appointed to carry out the instructions in a will. Their duties include filing paperwork with the court, paying debts, and distributing property. If there is no will, the court will appoint someone to serve in this role.
Trust
A trust is a legal arrangement in which one person (the trustee) manages property on behalf of another (the beneficiary). Trusts are often used to avoid probate, protect assets, or manage property for minors or individuals who cannot handle finances on their own.
Trustee
The trustee is the individual or institution responsible for managing the property in a trust. They must act in the best interests of the beneficiaries and follow the instructions set out in the trust document.
Guardian And Conservator
A guardian is appointed by the court to make personal and medical decisions for someone who cannot make them on their own, often due to age or incapacity. A conservator, on the other hand, manages financial affairs for that person.
Power Of Attorney
A power of attorney is a legal document that gives someone the authority to make decisions on your behalf. This authority may cover financial matters, medical care, or both, depending on how the document is written.
Advance Directive
An advance directive, sometimes called a living will, is a document that allows you to state your wishes about medical treatment in the event you cannot communicate them yourself. It can provide guidance to family members and healthcare providers.
Knowledge Is Power
Having a grasp of common probate and estate terms makes it easier to understand how the process works and what documents you may need. If you find yourself running into questions about a loved one’s estate or planning for your own future, working with our legal team can give you the support and clarity you need. At Gudeman & Associates, P.C., we are here to guide you through the process and protect your best interests. Contact us today to speak with an attorney and learn more about how we can help.
