What is an estate plan?
To understand an estate plan, let’s first cover what an estate is. An estate — in this case, your estate — is the collection of all your personal belongings. This includes your home, car, cash, bank accounts, investments, dividends, interest, real estate and other personal property such as antiques, collectibles and family possessions. In essence, absolutely everything you own. The main purpose of estate planning is to ensure that your assets are passed on in the way you intend while minimizing taxes and other costs. Simply put, to ensure your wishes are carried out. Estate planning also helps avoid conflicts and legal disputes among your living family or heirs and avoid losing your assets to the government. In addition, an estate plan specifies your healthcare wishes if you cannot make your own decisions. It tells your loved ones and caretakers what to do regarding health care, long-term care, managing your finances and taking care of your children, among other situations.