A Few Useful Pieces of Estate Planning Terminology for Non-Lawyers

Published on
April 22, 2024
Written by
Angel Murphy, Esq
Category
Estate Planning

Estate planning may be summarized as follows: estate planning is the attempt to maximize the value of a given estate, and to ensure that a given estate is distributed properly, through the use of legal instruments. Consistent with this summation, individuals who are looking to plan their estate typically engage attorneys, because attorneys are the ones who are fully conversant with the legal instruments involved in estate planning. The primary instruments used in estate planning are wills and trusts. Wills are designed to ensure that an individual’s assets are properly transferred following death, while trusts are usually used to properly transfer and utilize a person’s assets while that person is still alive. Wills and trusts are complex instruments, and there is a wide variety of terminology associated with these legal tools. In this post, we will go over a few pieces of terminology which laypeople may find useful.

1. Intestate

This is the term given to any individual who passes away without writing a valid will. If a person passes away without having a validly executed will, that person is considered to have died “intestate,” and that person’s assets will be distributed according to the default laws (i.e. intestacy laws) of the state in which the person died.

2. Codicil

A codicil is a formal amendment to a previously executed will. A codicil allows a change to a will while still keeping the unchanged aspects of the will intact and enforceable.

3. Irrevocable Trust

An irrevocable trust is a trust which cannot be unilaterally terminated, modified or amended by the grantor, or trust creator. Irrevocable trusts may be used for various purposes, and each irrevocable trust may be somewhat different, but the commonality between them all is this restriction placed on the ability of the grantor.

4. Beneficiary

A beneficiary is a person identified, in either a will or trust, to receive the benefits of a legal instrument. For example, when a person establishes a trust, and someone is designated to receive the assets placed in that trust, that recipient is referred to as the “beneficiary.” The same applies to someone identified in a will: a person receiving assets through a will is considered a beneficiary of the estate.

5. Joint Tenancy

Joint tenancy is a form of co-ownership of property. When property is held via joint tenancy, the property is owned simultaneously by multiple persons, and each person holding co-ownership has an equal interest in the underlying property (i.e. if there are two owners, each owner holds 50% interest, etc.). Importantly, joint tenancy comes with rights of survivorship, which means that if one co-owner dies that co-owner’s interest passes directly to the remaining co-owner or co-owners.

Contact the Murphy Law Firm for More Information

If you would like more information estate planning, including wills and trusts, reach out to one of the attorneys at the Murphy Law Firm today by calling 240-219-9311.

Angel Murphy

Personable. Passionate. Persistent.

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