If you’re thinking about writing your first will and putting your affairs in order to simplify things for your loved ones in the case of your passing, you might have heard about estate planning. It’s a term that pops up from time to time, but most people don’t really understand what it means.
It’s important to understand that estate planning is not the same thing as writing a will. If you’re interested in finding out more about it and whether or not it could work for you, you should speak to a financial planning specialist.
However, I’ve put together a quick guide to estate planning and when it should be used to help you get started.
What Is Estate Planning?
Put simply, estate planning involves putting together a detailed plan for your estate in the event of your passing. It’s designed to make sure that the right beneficiaries receive what’s intended for them, to reduce the amount of tax you pay as much as possible, and to make sure that any minor children are taken care of.
Your estate effectively includes everything that you own. This stretches through physical assets, digital assets, property, cash, and anything else with financial or monetary value.