Common estate planning documents

Will – A document in which a person specifies the how his or her property is managed and distributed after death.

• Why? You don’t agree with the state of Texas as to how your estate should be divided. It’s cheaper than going through probate without a will. You have young children.

Power of Attorney – A written document in which one person (the principal) appoints another person to act as an agent on his or her behalf, so the agent can perform certain acts or functions on behalf of the principal.

• Why? Most people use a power of attorney to choose someone to handle their affairs in case they may become incompetent to do so themselves. Alternatively, many elderly people reach a point where they do not want to be bothered with the management their financial affairs anymore.

Medical Power of Attorney – A power of attorney for medical purposes only.

• Why? You don't agree with who the state of Texas would choose to make decisions for you or that person would not be a practical choice.

Trust – A relationship created by an individual, in which one or more persons hold the individual's property subject to certain duties to use and protect it for the benefit of others.

• Why? You don’t trust the beneficiaries to wisely handle the property you want them to benefit from or they are not legally old enough to manage the property. You want to avoid probate costs, probate hassles, or having your estate plan become a public record. To manage your affairs. To allow multiple people to possess NFA items without becoming felons. To qualify for government benefits. To avoid estate taxes. Many other reasons.

Directive to Physicians – Commonly referred to as a “living will.” A written document that allows a patient to give explicit instructions about medical treatment to be administered when the patient is terminally ill or suffering from a permanent condition; also called an advance directive.

• Why? So that your loved ones don’t have to make a tough decision. Because you don’t want your loved ones to make the wrong decision.

Pre-Need Designation of Guardian – A written instrument in which a person selects who the court will appoint as his or her guardian before the person becomes incompetent. The court must select this person unless the court finds that the person is unqualified or would not serve the ward’s best interest.

• Why? So the courts don’t pick that busy body relative you hate.

​Appointment of Agent to Control Disposition of Remains – A written instrument that allows a person to choose who is in charge of their corpse.

• Why? Sometimes there are big fights about funerals.

Common estate planning terms

​Agent – A person chosen to act for a principal under a power of attorney.
Beneficiary – A person who derives advantage from something, especially a trust, will, or life insurance policy. In other words, who you want to get all or some of your stuff.
Estate – All the property owned by a person.
Executor – A person chosen in a will to manage and distribute an estate under a will.
Guardian – A legal guardian is a person who has the legal authority (and the corresponding duty) to care for the personal and/or property interests of another person, called a ward.
Heir – A family member who will inherit all or some of your property if you die without an estate plan.
Intestate – This refers to one who passes away without a will. If any probate assets exist, then an intestacy proceeding or proceedings often need to take place for a court to determine who will inherit and how property should be distributed.
Non-probate estate – Property that passes by contract or operation of law. This kind of property would pass outside of any probate proceeding. Common non-probate assets include annuities, retirement accounts, life insurance, and sometimes even bank accounts.
Principal – A person for whom an agent acts under a power of attorney.
Probate estate – Property that passes by will or an intestacy proceeding.
Settlor – A person who makes a trust. Sometimes referred to as a trustor, grantor, or donor.
Trustee – A person a settlor chooses to manage a trust. Often the settlor.