An Overview of the Documents and People Involved
Your “estate” includes everything you own: home, car, retirement and investment accounts, checking and savings accounts, furniture, tools, toys, personal items, etc. Large or small, all of your assets are part of your estate.
The process of “estate planning” involves making decisions about how those assets should be used, managed, or distributed upon your death or incapacitation. It also requires that you make decisions about who will be responsible for carrying out your wishes.
Here is a list of documents commonly used as part of a good estate plan, and a list of roles or positions that people may play in connection with each. Keep in mind that most of these positions can include a back-up or successor nomination, and that most of the positions can be filled by two or more people who would be required to act together.
Living Trust (aka Family Trust or Revocable Trust)
Grantor: the person who creates and funds the trust (this will be you, if you are creating a living trust);
Trustee: the person responsible for managing the trust assets and making distributions from the trust according to the terms and conditions contained in the trust;
Beneficiary: those who will benefit from or receive property and distributions from the trust.
Last Will and Testament (aka Will)
Testator: the person for whom the will is created (you, if it is your will);
Beneficiary: a person who will inherit under the terms of the will;
Witnesses: under Utah law, two witnesses (along with proper notarization) can make a will “self-proving” in the event probate is required;
Heirs: people who would inherit from your estate if you did not create a last will and testament (these people can still inherit as beneficiaries if you create a will, but they are the only ones who inherit if you do not create a will);
Minor Guardian: the person you nominate to act as guardian for a child who is still a minor upon your passing (applies only if you have minor children).
Durable Power of Attorney (aka POA)
Principal: the person granting authority to act on their behalf (you are the principal when you create a power of attorney);
Agent: the person to whom authority is given.
Advance Health Care Directive (aka AHCD)
Agent: the person you give authority to make health care decisions on your behalf, obtain medical records and information, and make end-of-life care decisions when you are not able to speak for yourself.
Having the Assistance of an Attorney
Each person and each family will have their own set of circumstances, preferences, and needs that should be considered when making estate planning decisions. A cookie-cutter approach to the process can sometimes be worse than doing nothing.
We strongly encourage consulting with a good attorney before making estate planning decisions. Contact us today to set up an initial consultation.