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INSIDE
Estate Planning For ALL Stages of Life
by Kathryn Schofield Guest Editor
The Estate Planning Issue’s organizing principle is that estate planning is relevant at all stages of life – from childhood to marriage (and second marriage!), buying a house, running a successful business, and yes, old age. This selection of articles is our attempt to bring that home the reality that estate planning is relevant to everyone, including you. Estate planning has its own lingo, and that alone can be a barrier for people to get their estate planning done. I assure you, non-estate planners out there, estate planning isn’t scary! Here’s a glossary of basic estate planning terms everyone should know (and maybe were afraid to ask). Most make an appearance somewhere in this issue. Disclaimer: this glossary is not a legal treatise. For precision, talk to your friendly neighborhood estate planning attorney.
Glossary Estate:
A person’s stuff. Alive or dead, in a trust or not. All of it, no matter its form. Money, stock, personal property or real property.
Estate plan:
A collection of documents giving your directions if you aren’t able to speak for yourself. Estate plans cover what to do with your stuff and your life. Typically, they include a health care directive, durable power of attorney, will and (probably) a trust.
Trust: An agreement that one person (the “trustor”) entrusts another person (the “trustee”) with their stuff and gives them instructions what to do with it. The most common is a “revocable” trust: the trustor can change the terms or terminate the agreement. A revocable trust usually starts out with the trustor and the trustee being the same person. In contrast, “irrevocable” trust terms can’t be changed, and trustees are usually someone else. Irrevocable trusts are handy for tax and benefits planning, because they shift who legally owns and/or controls your stuff. Settlor:
(yes, that is spelled correctly): The person whose stuff it is and executes the trust agreement. Also known as the “trustor.”.
Advance Health Care Directive: Also known as a
“living will,” an AHCD sets forth your personal care choices while you are alive. It includes more than when to pull the “pull the plug.” It can include all kinds of things, like if and when it would be ok to move you out of your home or what kind of music calms you down.
Durable Attorney:
Powers
of
A DPOA gives someone else the power to manage your finances. The agent does not have control over the stuff in your trust. The trustee doesn’t have control over any stuff not in your trust. That said, your agent and trustee can be the same person.
Will: You know what this is. Don’t confuse it with a trust. Separate Property:
All of your stuff that you acquired outside of your marriage. An inheritance for example, but also what you accumulated before or after the
CONTRA COSTA COUNTY BAR ASSOCIATION CONTRA COSTA LAWYER
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