what is estate planning

Estate planning is the process of anticipating and arranging for the management and disposal of a persons estate during their life in preparation for their future incapacity or death. The planning includes the bequest of assets to heirs, loved ones, and/or charity, and may include minimizing gift, estate, and generation-skipping transfer taxes. Estate planning includes planning for incapacity, reducing or eliminating uncertainties over the administration of a probate, and maximizing the value of the estate by reducing taxes and other expenses. The ultimate goal of estate planning can only be determined by the specific goals of the estate owner, and may be as simple or complex as the owners wishes and needs direct. Estate planning may involve a will, trusts, beneficiary designations, powers of appointment, property ownership, and other devices. It is an ongoing process, not a one-time event, and should be reviewed and updated as family and financial circumstances change over time. Estate planning is not just for retirees, as illness and accidents can happen to people of all ages. Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death or in the event they become incapacitated. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated. The purpose of making an estate plan is to ensure that your wishes are carried out when you pass away or are unable to make decisions for yourself, and to minimize taxes and family strife. Estate planning can help prevent a number of potentially troubling problems from arising, even if you don’t have a lot of assets.