Estate planning involves creating a legal strategy to manage and distribute one’s assets and belongings after death, ensuring they go to intended beneficiaries smoothly.
Estate planning is the formal or informal practice of structuring an action plan to manage and maximize the value, usefulness, and liquidity of the assets owned by an individual, trust, or foundation in the event of incapacitation or death. Estate planning also involves controlling risk within tolerable limits through diversification, asset yield, and control of the liquidation time horizon.
The planning also includes the bequest of assets to heirs and the settlement of estate taxes and other obligations. Most estate plans are set up with the help of an attorney experienced in estate law along with accountants, financial planners, and business valuation advisors.