Wills, Trusts and Estate Software Key Terms

Understand the terminology associated with Wills, Trust, and Estate software

By Mary Yamin-Garone

Wills, Trust, and Estate planning is an ongoing process that helps individuals get their affairs in order. Care must be taken to determine how a person’s assets will be distributed, who will care for them if they are unable to make competent and informed decisions regarding their health care, and who should be designated as a beneficiary or heir to their estate.

Wills, Trust, and Estate software is designed to assist individuals and attorneys in this process. The key to successfully using these products is an understanding of the basic terminology.

Probate

Probate is the legal process of gathering a person's property and belongings, paying off any debts, and distributing the estate to the beneficiaries named in the Will. The Will and the identified legal heirs must be proven and verified.
Try: Estatefinance.com elaborates on the probate process.

Beneficiary

Appointing a beneficiary is one way a person can transfer their property or other assets upon the event of their death. Typical beneficiaries are spouses, children, other family members and charities. Designating a beneficiary can also circumvent the probate process in certain situations. Some Wills, Trust, and Estate software packages allow individuals to name the beneficiaries for various parts of their estate.
Try: InvestorGuide provides information about a beneficiary’s role in the Wills, Trust, and Estate process.

Power of Attorney

A Power of Attorney (POA) is a legal document providing the authority to another person (usually an attorney) to make legal and financial decisions on behalf of the donor. There are different types of power of attorney, each bestowing different "powers." Forms to customize power of attorney agreements are part of Wills, Trusts and Estate software packages.
Try: E-law gives an overview on Power of Attorney and answers frequently asked questions.

Estate tax

An estate tax is one of the most long-standing and common means of taxation. This tax is imposed on the deceased individual's estate no matter how the estate is distributed. Estate taxes are generally applied to any assets that are bequeathed to a person's heirs. Most Wills, Trusts and Estate software will calculate and analyze an individual's estate tax.
Try: Investopedia provides more information on the details of estate taxes.

Assets

A person's assets take many forms, including financial investments, property, retirement accounts (IRAs and 401(k)s), life insurance policies or business dealings. Wills, Trust, and Estate software provides a vehicle for individuals to disperse their assets to a designated heir or beneficiary.
Try: InvestorWords offers several definitions of assets.