When a person dies, the material possessions they leave behind is their estate; the people they leave behind is their family. Although inevitably estate planning revolves around the event of death, its greater purpose is planning for life, particularly of the loved ones who go on.
A person’s estate begins upon their death, consisting of all of their material possessions, their businesses, their investments and their property that they hold in their individual name. Estate planning has to do with a person’s plan of what happens to all of these assets when they pass away.
This address two issues:
- The distribution of estate property (who get’s what) and…
- How to handle estate tax liability.
Proper estate planning can also provide more than financial benefits for a deceased person’s family and friends. It can provide a guiding hand that lasts beyond the grave.