Estate Planning
GeneralGlossary term
Definition
The process of arranging how your assets will be distributed after death and making healthcare decisions if you become incapacitated. Includes wills, trusts, and powers of attorney.
Related terms
- WillA legal document that outlines how you want your assets distributed and your affairs handled after your death. A valid will typically names an executor to carry out your wishes, designates beneficiaries to receive your property, and can also name guardians for minor children. Without a will, state laws determine how your estate is divided, which may not align with your preferences.
- TrustA legal arrangement in which one party, called the trustee, holds and manages assets on behalf of another party, known as the beneficiary. Trusts can be used to control how and when your assets are distributed, potentially reduce estate taxes, and avoid the probate process. There are many types of trusts, each designed to address specific financial and estate planning goals.
- BeneficiaryA person or entity designated to receive assets from a trust, insurance policy, retirement account, or will after the owner's death.
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