When you start thinking about estate planning, you might feel overwhelmed by unfamiliar terms. Legal language can sound complicated, but you should not let jargon stand in your way.
The truth is, most estate planning concepts are easier to understand than you think. When you learn what these terms mean, you can make informed decisions and feel confident discussing your plan with your attorney.
Here is a guide to some of the most common estate planning terms, explained in plain language.
Trusts
A trust is a legal arrangement that holds property for someone’s benefit. You create a trust by signing documents that name a trustee to manage the assets and beneficiaries who will receive them.
People use trusts for many reasons, including avoiding probate, protecting assets, and supporting loved ones.
Revocable Living Trust
A revocable living trust is the most popular type of trust for estate planning. You can change it or revoke it at any time while you are alive. It is the most flexible style of trust to manage.
When you set up this trust, you usually serve as the trustee and remain in control of the property. After you pass away, your successor trustee distributes the assets to your beneficiaries without going through probate court.
Irrevocable Trust
An irrevocable trust cannot be changed or dissolved once you create it, unless you have consent from all beneficiaries or meet certain legal conditions.
While this means giving up some control, it also provides benefits. For example, an irrevocable trust can protect assets from creditors or help reduce estate taxes if you have significant wealth.
Special Needs Trust
A special needs trust is designed to support a person with disabilities without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income.
The trustee manages the funds and uses them to pay for approved expenses that improve the beneficiary’s quality of life.
Powers of Attorney
A power of attorney is a document that gives someone else the legal authority to act on your behalf. This authority can cover financial matters, health care decisions, or both.
Durable Power of Attorney
A durable power of attorney lets your chosen agent manage your finances if you become incapacitated. They can pay bills, handle investments, and take care of other transactions in your name.
This document stays in effect if you lose the ability to make decisions, which is why it is an important part of every incapacity plan.
Health Care Power of Attorney
A health care power of attorney gives someone you trust the authority to make medical decisions for you if you cannot speak for yourself.
This person, sometimes called your health care proxy, works with your doctors to ensure your wishes are followed.
Living Will
A living will is a document used to share your preferences about medical treatment if you face a grave illness or injury.
This document guides your health care providers and loved ones about life-sustaining measures, such as breathing machines or feeding tubes.
Do Not Resuscitate Order (DNR)
A do not resuscitate order is a specific instruction that tells medical personnel not to perform CPR if your heart stops or you stop breathing.
This order is usually prepared separately and must be signed by your doctor. It is an important part of your health care planning if you want to limit aggressive treatments.
Probate
Probate is the legal process that settles your estate after you pass away. The probate court reviews your will, appoints someone to manage your affairs, and ensures your debts are paid before assets are distributed to your heirs.
Executor
The executor is the person you name in your last will and testament to carry out your wishes. This person collects your property, pays bills and taxes, and distributes what remains according to your instructions.
Choosing an executor you trust is one of the most important decisions you make.
Administrator or Personal Representative
If you die without a will, the court appoints an administrator to perform the same duties as an executor. Because you did not leave instructions, the administrator must distribute your estate according to Oklahoma’s intestate succession laws.
Take Action Today!
Now is the time to end the procrastination if you are unprepared, and you can call us at 405-843-6100 to schedule a consultation at our Oklahoma City estate planning office. Our Tulsa location can be reached at 918-615-2700, and you can use our contact form to send us a message.
Since founding Parman & Easterday in 1985, Larry has led over 1,000 free, community-service education programs and helped more than 10,000 Oklahoma families go from putting off their estate plan to getting it done. His goal for every client is the same: to become the person their family calls "the one who took care of everything."
Larry is the author of three books: The Straight Shooter's Guide to Estate Planning; Estate Planning Basics; and Guiding Those Left Behind in Oklahoma. He served as Oklahoma's Secretary of State and Secretary of Commerce, and his firm is the only member of the American Academy of Estate Planning Attorneys in the state.
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- What Happens to My Living Trust If I Become Incapacitated? - August 27, 2026
