Reasons for Estate Planning

By Lindsay Chin

Estate planning is the process that involves “people- your family, other individuals, and in many cases, charitable organizations of your choice” (The State Bar of California 1). This process involves your assets, property, forms of ownership and title. Estate planning “is the process by which an individual or family arranges the transfer of assets in anticipation of death” (Cornell University 1). It aims to preserve the maximum amount of wealth possible for beneficiaries. All your assets should be included in your estate. Whether a person has large or small estates, whether they are “young or old, who has a family or owns property, needs an estate plan” (Dillard University 1). A good estate plan will allow a person to reach desired personal, economic, legal consequences, and personal objectives. They should plan who should manage their assets and make personal and health care decisions for you. In your estate planning it should include a will and trusts. A will is a “traditional legal document” (The State Bar of California 5). It should include the names of individuals who will receive your assets after your death, a trust, an executor who will be appointed to manage your estate, and any guardians for minor children. It requires knowledge in federal and state “estate taxation, wills, insurance, methods of owning property, forms of business organization, trusts, and more” (Dillard University 1). This way you plan for yourself, your family, and any others involved with your estate.


Sources:
http://topics.law.cornell.edu/wex/Estate_Planning
http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10581&id=2206
http://www.dillard.edu/index.php?option=com_content&view=article&id=118&Itemid=149