Common Estate Planning Acronyms
Within every professional milieu there is a specific lingo that arises and in most cases terms that are kind of wordy are decreased down to the initials that represent them.
These acronyms are often then utilized as “words” in their own right, however those who are not familiar with the field might not acknowledge them. Estate planning is no various in this regard, and below you will find a few acronyms that you will undoubtedly stumble upon when you are checking out the topic.
In the field of estate planning the initials QPRT represent “certified personal home trust.” These trusts are helpful tools for people who require to remove the value of their homes from their estates to lower their estate tax liability. You put your home in the QPRT and call your successor as the beneficiary of the trust. You can then reside in the house totally free of lease for a time period that you elucidate in the initial arrangement, so absolutely nothing concrete changes in your life however your home is no longer part of your estate for tax purposes.
POD and TOD Accounts
The initials POD mean “pay on death,” and likewise, TOD means “transfer on death. You can open among these accounts at your bank and call a recipient. When you pass away the possessions become property of your called beneficiary straight and the deal does not need to pass through probate.
For estate planning lawyers the acronym POA represents the legal instrument called a “power of attorney.” When you perform a power of attorney you are empowering someone to act in your behalf, and this person is described as your attorney-in-fact.
An IRA is an “individual retirement account,” and the typical types of Individual retirement accounts that retirement planning attorneys suggest can include conventional Individual retirement accounts, Roth IRAs, SIMPLE IRAs, SEP IRAs, and self-directed IRAs.