Welcome back! Our estate planning attorney in Raleigh NC is back with more terms you should become familiar with in order to better understand the ins and outs of estate planning. If you missed our previous blog post, check back there for more terms.
Terms to Know When Working with an Estate Planning Attorney in Raleigh NC
- Property - Anything subject to ownership.
- Probate Tax - A tax imposed on property passed to someone else per instructions outlined in the deceased’s will.
- Probate - A court-supervised process of proving that a will is valid and then distributing the assets under the terms outlined in it in accordance of the state laws.
- Private Trust Company - Also known as a family trust company, this entity is formed by a family to serve as a trust for the estates and trusts of extended family members.
- Principal - The property in a trust that generates income and is used to benefit the trust’s beneficiaries according to the terms of the trust.
- Power of Attorney - A document that gives a person the authority to act on the behalf of another person, making legal and financial decisions for them. It terminates when the person dies unless it is noted as “durable.”
- Power of Appointment - Power given to a beneficiary under the terms of a trust that allows the individual to make decisions about the property.
- Operation of Law - The process by which assets are passed on when someone dies based on state laws or titling arrangements rather than under the terms in the will.
- No-Contest Clause - A provision that overturns the original will or trust’s instructions if someone sues for more money, causing them to lose any inheritance rights he or she can have had. The clause is permissible in certain states.
- Marital Trust - A trust that holds property for the surviving spouse in an AB trust. It is designed to qualify for the marital deduction so that the surviving spouse does not have to pay taxes on the estate.
- Marital Deduction - A federal estate and gift tax deduction that is unlimited, allowing for assets to be passed between spouses without being subject to taxes.
- Living Trust - A trust created by an individual to keep their assets protected. Typically it is a revocable trust.
- Life Estate - Ownership of property that lasts as long as the life beneficiary is alive.
- Life Beneficiary - Someone who receives benefits from a trust or other arrangement for the rest of the individual life.
- Joint Tenancy - When two or more people own property together.
- Irrevocable Trust - A trust that cannot be overturned or modified by a grantor.
- Inventory - A list of all the assets of a decedent or trust.
- Insurance Trust - A trust created to have life insurance on a person or persons that is not included in the gross estate at the time of the individual death.
Remember, if you missed our last blog, be sure to check back here for more terms to get familiar with. Also, feel free to contact our estate planning attorney in Raleigh NC any time you have questions or concerns about your will or other estate planning needs.
You can work with an estate planning attorney in Cary NC to plan and to have someone appointed to take care of your estate when the time comes. This can ensure that you are protected and that your wishes will be carried out even when you are no longer able to express them. If you're ready to start planning today, contact our estate planning attorney in Raleigh NC. We are here to help you.