What is the purpose of estate planning?

Estate planning is an important legal process that helps people plan for their future and organize their financial life. The purpose of estate planning is to create an organized plan for what happens to a person’s assets after they die. It involves organizing and transferring a person’s assets, including property, investments, businesses, and other financial matters. Estate planning helps protect a person’s assets and property, reduce inheritance taxes, and provide for their family’s future financial security. Estate planning is particularly important in California, as the state has higher estate, gift, and inheritance taxes than the national average. Estate planning helps individuals reduce the amount of taxes their heirs will have to pay when they pass away. It also helps ensure that the heirs are able to access and manage the assets without any problems or delays. Estate planning also makes end-of-life decisions easier, by making clear who has power of attorney and control over finances. Estate planning also helps ensure that an individual’s assets and property are looked after in the event they are no longer able to manage them due to incapacity or illness. Estate planning allows individuals to create a will, which outlines how their assets will be distributed after death, and set up trusts that can be used to manage assets for the benefit of loved ones. Finally, estate planning can provide directions for the disposal of physical possessions, such as artwork and family heirlooms.

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What is the purpose of estate planning?

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