Understanding These Key Terms in North Carolina Estate Planning

Estate planning helps you decide who receives your assets, who manages them and how health decisions get made if you can’t speak for yourself. North Carolina law uses specific terms in wills, trusts and powers of attorney. Learning these words gives you confidence when you prepare documents or meet with an attorney.

Below, we explain each term and show where state law defines it. Knowing these definitions reduces surprises during probate and protects your wishes.

Thirteen Estate Planning Terms You Need to Know

1. Last Will and Testament
   A legal document stating how you want to distribute your property after death. North Carolina defines execution requirements in G.S. 28A-2-1.
2. Codicil
   A formal amendment to an existing will. A codicil follows the same signing and witness rules in G.S. 28A-2-2.
3. Intestate Succession
   Distribution of assets under state law when no valid will exists. North Carolina’s rules appear in G.S. 29-14.
4. Probate
   The court-supervised process to validate a will, settle debts and distribute property. Chapter 28A of the North Carolina General Statutes governs probate procedures.
5. Personal Representative
   The individual appointed to manage an estate, carry out your will’s instructions and handle creditors. Also called an executor, this role is defined in G.S. 28A-2-1.
6. Beneficiary
   A person or organization designated to receive property or benefits from your will, trust or life insurance policy.
7. Trust
   A legal arrangement where a trustee holds assets for beneficiaries. North Carolina’s Uniform Trust Code defines terms in G.S. 36C-1.
8. Revocable Trust
   A trust you can change or revoke during your lifetime. It can avoid probate but does not protect assets from creditors while you live.
9. Irrevocable Trust
   A trust that cannot be modified after signing. It can shield assets from estate taxes and creditors but limits your control.
10. Trustee
    The person or institution responsible for managing trust assets according to the trust agreement. The Uniform Trust Code sets out trustee duties in G.S. 36C-1 and following sections.
11. Power of Attorney
    A document allowing someone to act on your behalf for financial matters. North Carolina uses G.S. 32C-1 through G.S. 32C-8.
12. Health Care Power of Attorney
    Also called a medical power of attorney or health care directive, this document lets a trusted individual make health decisions if you cannot. See G.S. 32A-1 et seq.
13. Living Will (Advance Directive)
    A written statement of your wishes about life-sustaining treatment if you become terminally ill or permanently unconscious. North Carolina law governs it under G.S. 90-21.13A.

Take the Next Step with Pierce Law Group

Understanding these terms positions you to create an estate plan that reflects your wishes and complies with North Carolina law. At Pierce Law Group, our attorneys guide you through drafting wills, trusts and powers of attorney. Reach out today to protect your legacy and provide peace of mind for your family.

Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.