Estate planning involves the distribution of a person’s assets when they become deceased. Estate planning is an important part of the overall financial planning process because it is required to ensure the smooth transition of assets and business operations during a time of emotion and potential financial uncertainty, particularly in regards to dependents who are relying on the deceased’s assets and income for day to day living.
Estate planning is complicated and highly litigious and if not executed correctly can cause great difficulty for family members and dependents who are already going through a grieving period.
A poorly executed or non-existent Estate Plan can cause assets to be distributed to parties who the deceased may not have intended them to go to, assets may be reduced in value due to taxation or other implications and/or may be frozen and kept in limbo and out of reach of people who are of importance to the deceased who may desperately need them and are dependent on them to live.
A good estate plan has the goals of distributing the right assets to the right people in the most tax effective and timely matter possible.