The Swier Law Firm Estate Planning and Probate Law FAQs

What Are Heirs In Estate Planning?

A person that would be entitled by law to inherit from your estate.

Example Of Heirs In Regards To Estate Planning

I am my dad’s sole heir.  When he passes I should inherit everything unless he has a will stating otherwise.

What Does A Guardian Mean In Estate Planning?

A person appointed to care for a minor child or adult needing such care.  This generally covers care for the actual person, and may or may not include care of assets and finances.

Example Of Guardian In Regards To Estate Planning

My brother named me guardian of his daughter in case he and his wife pass. 

What Is A Grantor, Trustor, Settlor, Creator, Donor or Trustmaker Mean In Estate Planning?

A person who sets up a trust.

Example Of Grantor, Trustor, Settlor, Creator, Donor or Trustmaker In Regards To Estate Planning

My attorney just helped me set up a trust for my children.  I am both the trustor and trustee of my new trust.

What Does Fiduciary Mean In Estate Planning?

A person or entity that has a legal duty to act for another person, often a beneficiary.  This term is generally associated with a trustee of a trust.

Example Of Fiduciary In Regards To Estate Planning

My uncle is the trustee of the trust my dad set up for my brother and I.  I know there’s a lot of money in there so I asked him for money for a sport car, but he says he as a fiduciary duty to hold, invest and pay the assets out in our best interests and he doesn’t think a sports car is in my best interest.

 What Does Estate Tax, Inheritance Tax and Death Tax Mean In Estate Planning?

Taxes due on an estate at the federal or state level.  Based on the current federal estate tax exemption 99.9% of current estates will not be subject to this tax.

Example Of Estate Tax, Inheritance Tax and Death Tax In Regards To Estate Planning

I had no idea that my dad’s estate, as a single person, had to be over $11.4 Million dollars before it would be subject to federal estate tax, and a married couple has to have more than $22.8 Million before they will pay federal estate tax.  I hear politicians talking about cutting the federal estate tax all the time, but there’s no way I or anyone I know would ever come close to having to pay it.

What Does Net Estate Mean In Estate Planning?

The value of an estate after debts have been paid.  This amount is used to determine if taxes are due.

Example Of Net Estate In Regards To Estate Planning

After all of the assets had been found and collected and all of the debts had been paid, we took my mom’s net estate and divided it four ways among us kids.

What Does Gross Estate Mean In Estate Planning?

The value of an estate before debts are paid.

Example Of Gross Estate In Regards To Estate Planning

My dad’s gross estate made it seem like he was super wealthy, but after we subtracted his mortgage, car loans, and credit card debts it was clear that he had lived above his means.

What Does Estate Mean In Estate Planning?

The combination of the assets and debts of someone who has died.

What Does Health Care Power of Attorney, Health Care Proxy, Medical Power of Attorney Mean In Estate Planning?

A legal document giving someone else the legal authority to make decisions and obtain information related to your health care.  This is valid through incapacity but ends the moment of death.

Example Of Health Care Power of Attorney, Health Care Proxy, Medical Power of Attorney In Regards To Estate Planning

I have named by brother as my power of attorney, but have decided to name by best friend as my health care power of attorney.  My friend is a nurse and lives close by so I think she would be more helpful to me if I need help with medical decisions.

What Does Durable Power of Attorney Mean In Estate Planning?

A legal document giving someone else the legal authority to make general decisions on your behalf when you cannot act for yourself.  This can be limited to doing one thing (signing a mortgage, buying a car) or broad enough to cover anything and everything you make decisions on.  This is valid through incapacity but ends the moment of death.

Example Of Durable Power of Attorney In Regards To Estate Planning

My mom has recently started to have problems with her memory and we are both glad she took the time to draft a power of attorney and name me as the one to help her take care of things.