estate planning

An estate is the total property, real and personal, owned by an individual prior to death that is distributed through a trust or will. Real property is real estate and personal property includes everything else, for example, cars, household items, and bank accounts. Estate planning distributes the real and personal property through various legal routes.

Estate planning is the process by which an individual or family arranges the transfer of assets in anticipation of death. An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. A major concern for drafters of estate plans is federal and state tax law.

Wills and trusts are common ways in which individuals dispose of their wealth. Without proper planning, a client’s estate may be significantly reduced.