Estate planning is the process of taking inventory of material possessions and providing for the people we leave behind after death, especially children or other people we are responsible for.
Preparing an estate plan involves creating an inventory of our possessions, planning for what will happen to our assets after death, and protecting our family members. Generally, an estate plan provides a lawyer with documents, specific instructions, and declarations regarding the care or transfer of our possessions should we become incapacitated—mentally or physically—or pass away.
“It’s very important to have an estate plan if you want any say in how your assets are distributed and who they’re distributed to.”
When we die, there are three primary ways assets can transfer: through a will, state statute, or contract agreement, such as a living trust or a beneficiary designation. A good estate plan handles both medical and financial matters.
Estate planning is the process of taking inventory of material possessions and providing for the people we leave behind after death, especially children or other individuals we’re responsible for.