A Glossary Of Essential Estate Planning Terms
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific sector, and the legal industry is no exception.
Therefore, to help you understand the terms, acronyms, and phrases regularly used when looking for legal representation, Keith R. Romero, Attorney and Counselor at Law, has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your estate planning needs effectively.
Revocable Living Trust (RLT)
It’s an arrangement where a person transfers ownership of property into a trust throughout the course of their lifetime to minimize tax.
Power of Attorney (POA)
It’s a written authorization enabling an individual to act on behalf of the person that has given the POA.
Health Care Power of Attorney (HCPOA)
It’s a legal document that allows an individual to empower someone to make decisions about their healthcare.
It includes all the supporting documents in a comprehensive Estate Plan, including the Power of Attorney, Health Care POA, Living Will, and Pour-Over Will.
It’s a Will that works in conjunction with a Living Trust. It’s a “safety net’’ in a Will that allows a personal representative to go before the probate court to have items placed in a Trust if not previously done so.
It’s a personal representative of an individual’s estate.
It’s a person designated to act on behalf of someone else, usually under a Power of Attorney.
Qualified Terminable Interest Property (QTIP) Trust
It’s often used to take advantage of the marital deduction while still controlling the ultimate distribution of the assets at the surviving spouse’s death.
It represents all the money and property owned by a particular person, especially at death.
A living trust is a legal document, or trust, created during an individual’s lifetime where a designated person, the trustee, is given responsibility for managing that individual’s assets for the benefit of the eventual beneficiary.
It’s an addition or supplement that explains, modifies, or revokes a Will or part of one.
It’s an examination performed after death.
Special Needs Trust
A special needs trust is a legal arrangement and fiduciary relationship that allows a physically or mentally disabled or chronically ill person to receive income without reducing their eligibility for public assistance. These include disability benefits provided by Social Security, Supplemental Security Income, Medicare, or Medicaid. In a fiduciary relationship, an individual or entity acts on behalf of another person or people to manage assets.
Transfer on Death Deed (TODD)
It’s a simple way to transfer real estate to someone after the death of the homeowner.
It’s a trust where a pet is designated as the beneficiary of a given trust for their care and maintenance.
We hope these terms made you feel more comfortable about liaising with an estate planning lawyer. If you’re looking for a top lawyer, reach out to Keith R. Romero, Attorney, and Counselor at Law. With many years of experience in the legal industry, I have a firm grasp of the law and render thoughtful and well-executed services.
My legal expertise includes Estate Planning, Wills, Revocable Living Trusts, Power of Attorney, and Real Estate Law. I also take care of Business Planning for clients.
My services are available across Albuquerque, Rio Rancho, Bernalillo, Los Lunas, East Mountain Area, and Santa Fe, New Mexico.