Estate planning is not an action but a process by which a person addresses how he or she wants their money and other assets distributed after their passing. But it’s more than that. An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries: the family.
A key element to an estate plan is that it offers some foresight into your future plans and wishes. You can determine how and by whom your assets will be managed for your benefit during your lifetime if you ever become unable to manage them yourself. It also accounts for how and by whom your personal care will be managed, and how health care decisions will be made during your lifetime if you become unable to care for yourself.
Regardless of your net worth, it’s important to have an estate plan.