What is Estate Planning?

Estate planning is the preparation of an individual’s estate in case of incapacitation or death. Estate planning involves addressing issues such as the distribution of an individual’s assets, the manner in which the individual’s financial obligations will be handled, establishing guardianship for any living dependents, planning for any possible estate taxes and funeral arrangements.

Estate Planning Process

Throughout the estate planning process, there will be many things to consider. However, some of the main points of focus will be as follows:

• Assets: it will be crucial to create a list containing all of an individual’s assets. This will allow us to accurately address any issues that may arise from the ownership of these assets in the event of an incapacitation or death. It will prevent any issues that may arise such as disagreements regarding what assets will be left to who and in what amounts.
• Debts: An individual will need to address any liabilities that may be associated with them in case of incapacitation or death. Not clearing or addressing debts can cause unforeseen issues that may affect an individual’s wishes regarding the distribution of the individual’s assets.
• Will: A will is important as this document will dictate many of the individual’s wishes regarding their estate upon their incapacitation or death. This document can contain in which manner an individual’s assets will be distributed, how liabilities will be answered for, who is in charge of making sure the will is correctly executed, and how the individual’s funeral should be carried out.
• Estate Administrator: An estate administrator will be in charge of carrying out the will in its entirety. They will have the responsibility of making sure all of the specifications of the will are carried out correctly. This is imperative as having a trustworthy estate administrator will ensure all of your wishes are carried out exactly as you have stated them.