Estate planning - Financial definition
Concise definition of the term estate planning
Estate planning is the process of arranging for the management and distribution of one's assets upon death, typically through the use of wills, trusts, and other legal instruments.
Comprehensive definition of the term estate planning
Estate planning encompasses a comprehensive strategy aimed at ensuring the orderly transfer of an individual's wealth and assets to designated beneficiaries upon death, while minimizing taxes, administrative costs, and potential disputes.
This process involves the careful consideration of various legal tools and mechanisms, such as wills, trusts, powers of attorney, and beneficiary designations, tailored to the individual's specific circumstances and objectives. Estate planning may also involve advanced strategies to mitigate estate taxes, protect assets from creditors, and provide for the financial well-being of family members, including minor children or individuals with special needs.
Additionally, estate planning often involves considerations beyond wealth transfer, such as healthcare directives, guardianship appointments, and charitable giving plans, to ensure that the individual's wishes are carried out and their legacy is preserved according to their wishes.