Personal Finance: Defining Estate Planning

Personal Finance: Defining Estate Planning

by Dr Edgar Paltzer

Personal Finance: Defining Estate Planning Estate planning is the term used to describe the specific set of tasks that are involved in ensuring the management of assets and their distribution following the death of the owner. Estate plans include instructions on settlement of debts and taxes due, as well as identifying beneficiaries of remaining assets.

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Making an Estate Plan An estate plan involves the writing of a last will and testament but is typically a more involved process than simply validating that document. There are many reasons why people choose to make estate plans, which can include the protection of family wealth, leaving a legacy to a charitable cause, ensuring funding will be available

for the education of children or grandchildren, and protecting the finances of surviving partners, offspring, or other relatives.

Writing a Will

used to identify the wishes of the testator after their death. If a will is valid and there are assets in place to cover debts and taxes before making gifts, then it is unusual for these wishes not to be carried out.

Writing a will is a key part of the estate planning process as it is this document that will be

Writing a will is a key part of the estate planning process as it is this document that will be used to identify the wishes of the testator after their death.

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You can learn more about charitable giving as part of estate planning by visiting the blog of Dr Edgar Paltzer.