Unless you are an estate planning professional, some of the terms used in this process can be very confusing at first. Understanding some basic estate planning vocabulary can help Florida residents best decide which type of tools they should use so that they can effectively manage their estates. Today, we are going to take a look at some terms used to describe the different roles and people involved in wills or trusts as explained by the American Bar Association.
A beneficiary is a person that you will identify to receive any assets either liquid or real after you die. These assets can include payments over time, such as interest earned. The executor is the person you name to be in charge of carrying out your wishes if you have made a will. If you have no executor or the person you name is unable to serve in this capacity for any reason, an administrator will be appointed to handle this job.
When you create a will or a trust, you are referred to as the testator. If you develop a trust, you will also be a grantor as you will grant assets into the trust. Other people may also be grantors if they assign ownership of any assets into your trust. With a trust, instead of an executor, you will name a trustee to manage the trust after your death.
To learn about more of the common terms used in estate planning, please visit the wills and trust creation page of our Florida estate planning website.