What is Estate Planning?
Estate planning ensures that a person’s final wishes are taken care of as per a person’s desire. It simply means that a person would like to distribute personal property to loved ones and family members, as stated in a document known as a Will.
Estate planning may also include other matters in addition to property distribution. A comprehensive approach to estate planning helps in addressing and resolving several issues, for example: –
- What would be the distribution of personal property amongst family members and others?
- What is the current state of financial position?
- What is the value of the property?
- Is there any requirement for appointing a guardian for minor children?
- Who would be appointed as a guardian for minor children?
- What could be the financial obligations or liabilities?
- What could be the impact of tax on the estate?
- What funeral arrangements need to be made?
An estate means all the financial and non-financial property that a person owns. While financial planning involves creating and managing your wealth, estate planning plans the distribution and management of the wealth created per the wish after the person has left the world.