What is estate planning and how does it work?

What is Estate Planning? Estate planning is the act of preparing for the transfer of a person's wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, personal belongings, and debts are all part of one's estate. Estate plans must be written, signed, and notarized by the person who owns the estate.

How do you set up an estate plan?

Most estate plans are set up with the help of an attorney experienced in estate law. Some of the steps included in estate planning typically include listing assets and debts, reviewing accounts, and the writing of wills.

What should be included in a estate planning plan?

The planning includes the bequest of assets to heirs, loved ones, and/or charity, and may include minimizing gift, estate, and generation-skipping transfer taxes.

What is the difference between an estate plan and a will?

Estate planning is an action plan that individuals use to determine what happens to their assets and obligations while they're alive and after they die. A will, on the other hand, is a legal document that outlines how assets are distributed, who takes care of minor children and pets, and any other wishes after an individual dies.