The primary purpose of an estate plan is to help you examine your financial needs and assets in order to make sure that your heirs are provided for in the best possible way, including lifetime planning as well as disposition of property at death.
What is the purpose of an estate plan?
Purpose of Estate Planning
Specifically, estate planning allows an individual to decide exactly who will benefit from their estate, and to what extent. Estate planning also ensures that the estate will not be destroyed by taxes imposed on the transfer of assets at death.
What is in an estate?
An estate consists of all of the property a person owns or controls. Estate property also includes all other monies that would be generated upon the person’s death, such as through life insurance. An estate can be divided up into three categories: gross estate, residue estate and estate debt.
What is the legal definition of an estate?
An estate, in common law, is the net worth of a person at any point in time alive or dead. It is the sum of a person’s assets – legal rights, interests and entitlements to property of any kind – less all liabilities at that time.
What is the purpose of probate?
Probate is the judicial process by which a decedent’s estate is valued, beneficiaries are determined, an executor in charge of estate distribution is declared, and the estate is legally transferred to the determined beneficiaries. An estate can be brought to the Probate Court in 4 ways.