Definition: Estate Planning
Estate planning is the process that a person goes through to plan for the disposal of their estate after their passing.
While estate planning is certainly not a pleasant process, it can save a family a great deal of trouble after the fact.
Estate legal troubles and disputes amongst heirs are very well documented, and most people have had personal or second-hand experience with this sort of dispute. Well executed estate planning helps to prevent or minimize this type of episode.
One important element of estate planning is the creation of a legal will. Another element is the creation of strategies that will minimize the tax burden placed on your heirs.
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A good estate planning expert will help you find ways to reduce the amount of your wealth that is taken by taxes when it passes to your heirs. One of these ways is achieved by using strategies such as trusts and trust funds.
Estate planning also involves providing instructions as to the care of any dependents you are still responsible for.
It also involves leaving instructions for your medical care in the event you become incapacitated, and no longer able to represent yourself.
Life insurance is also an important part of the process.
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