Navigating the world of Wills and Estate Planning can be confusing. You may have heard the terms Beneficiary, Executor, Administrator and Trustee but do you know what they mean?
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Wills and Estate Planning common terms
Beneficiary
A beneficiary is a person who receives a gift under a will. This might be money, shares, real estate, household goods or jewelry.
Executor
The executor of a Will is the person or organisation you appoint in your Will to administer your estate and wishes after your pass away.
Some of the things they need to do include applying for probate, collecting your assets, paying any debts and distributing your assets.
Administrator
If you pass away without a will, or if your will doesn’t name an executor who is willing to take on the role, someone will need to apply to be the administrator of your estate.
The role of an administrator is similar to that of an executor, but because the administrator is not someone you’ve personally chosen, there are additional requirements they must meet before the court will appoint them to this role.
Trustee
A trustee is the person or organization responsible for managing any trusts mentioned in your will.
For example, if one of your beneficiaries is unable to manage their own finances or is vulnerable, instead of gifting them assets directly, you might set up a trust in your will. The trustee will then manage the assets and income for the benefit of the beneficiary, ensuring their financial well-being throughout their lifetime.
Estate Planning
Estate planning is another common term often misunderstood. This is a broad term that ensures your wishes are known and followed after your death. At its core, estate planning means having a valid will in place.
You also need to consider the best way to provide for your beneficiaries, taking into account financial matters like taxation and the beneficiary circumstances. This is why seeking legal and financial advice is very important.
It's also about what happens if you lose capacity to handle your own affairs by making an enduring Power of Attorney and appointment of Enduring Guardian.
To book an appointment to discuss your Estate Planning documents, enquire below.
Make your Will with NSW Trustee and Guardian
NSW Trustee and Guardian provides an independent service at various locations to prepare your Will, Power of Attorney and Enduring Guardian documents, with packages to suit you.
In recent years more and more people are considering their pets as family members. As such, just as you would consider care and guardianship for a child, thinking about what may become of your pets if something should happen to you is just as important when making a Will.
