Must-Know Legal Terms Explained (So You Can Feel Confident, Not Confused)
If you’ve ever felt overwhelmed by legal jargon, you’re not alone.
At Colin Smith Law, we work with smart, capable clients every day who say things like:
“I’m sorry, I don’t know what that means.”
“Can you explain that again in plain English?”
“I feel like I should understand this already.”
And the truth is, you’re not supposed to know. That’s our job.
Still, we believe that when you’re planning your estate or navigating a loved one’s, you deserve to understand what’s happening. You shouldn’t have to Google every term or decode pages of legalese to know what you’re signing.
Here are five of the most common estate planning terms, broken down simply, with examples of when they come into play:
1. Power of Attorney (POA)
A Power of Attorney allows you to give someone else legal permission to act on your behalf. There are different types (medical, financial), but they all serve the same purpose: keeping you protected when you can’t advocate for yourself.
Example: If you’re unconscious after an accident, your designated POA can use your money to pay your bills or make medical decisions for you.
2. Executor
The executor is the person you choose to carry out the instructions in your will after you pass away. They are subject to court approval for their appointment.They gather your assets, pay any debts, and distribute what remains to your beneficiaries.
Example: Your will names your sister as executor. She’ll be the one in charge of making sure your wishes are followed and your loved ones receive what you left them.
3. Trustee
If you’ve created a trust (a legal entity to hold and manage your assets), the trustee is the person responsible for managing those assets according to your instructions.
Example: You set up a trust for your child and name your brother as trustee. Your brother will handle the funds, including distributing them when the trust terms dictate that he should do so, (which is usually at his discretion) until your child reaches the age you’ve specified in your plan.
4. Fiduciary
A fiduciary is a person legally obligated to act in someone else’s best interest. Executors, trustees, and agents under a POA are all fiduciaries, and they must avoid breaches of fiduciary duty.
Example: If your trustee invests money from your estate, they must do so carefully, honestly, and with your beneficiaries’ best interests at heart. They also can’t invest in their own real estate company; doing so would be a “breach of fiduciary duty” that is known as self-dealing.
5. Letters Testamentary
This is a document issued by a probate court that gives the executor legal authority to handle your estate. It’s required by banks, insurance companies, and financial institutions before they’ll release funds.
Example: Your spouse goes to the bank to access your account after you pass away. The bank asks for “Letters Testamentary” before they can release your spouse’s funds.
Still Not Sure? That’s What We’re Here For.
Understanding estate planning shouldn’t feel like passing the bar exam. It should feel like peace of mind.
We’re here to explain, walk you through every step, and build a plan you actually understand. You’ll never leave our office feeling confused, or unheard.
Ready to start the conversation?
Schedule a consult with Colin → https://colinsmithlaw.com/contact/
