UNDERSTANDING ESTATE PLANNING VOCABULARY
There are many terms used in estate planning that are not used in normal conversation, or that have a particular meaning for estate planning purposes. Some of the terms are:
Settlor (also called Trustor or Grantor): The person that puts their property into a trust but still owns the property
Trustee: The person that manages the trust (can be the same person as the Settlor)
Executor: The person that gathers and distributes the property that passes by will, under supervision by the probate court
Intestate: Died without a will (A testator is a person that writes a will)
Probate: The court process for approving a will, settling any disputes about the distribution of property under a will or to intestate heirs, overseeing sales of property, payment of creditors, accountings, and distribution of the estate assets.
Guardian of the Person: Physically takes care of a minor child in place of the parents
Guardian of the Estate: Manages the money for a minor child if other provisions haven’t been made
Conservator: Manages the money or has personal power over an adult incapacitated person after a court appointment process
Custodian: Manages the money for a child up to the maximum age of 25, using their discretion
Trustee of a Child’s Trust: Manages the money for a child based on the terms of the trust
Attorney in Fact: A person given power over the finances of another person with a power of attorney; also can be called an agent