Estate planning is the process of creating a plan for how a person’s assets will be managed and distributed after their death. The goal of estate planning is to ensure that the person’s wishes are carried out, and that their assets are protected and distributed in the most efficient and tax-effective way possible. Estate planning typically involves the use of legal documents, such as a will or trust, as well as other financial planning tools, such as life insurance and beneficiary designations.

Some key components of estate planning include:

• Creating a will: A will is a legal document that outlines how a person’s assets will be distributed after their death.
• Setting up trusts: Trusts are legal entities that can be used to hold and manage assets, and can be used for a variety of purposes, such as protecting assets from creditors or providing for loved ones with special needs.
• Designating beneficiaries: Beneficiary designations are used to specify who will receive the proceeds of life insurance policies and other types of accounts after the owner’s death.
• Powers of attorney: A power of attorney is a legal document that gives someone else the authority to make financial and legal decisions on your behalf if you are unable to do so yourself.