Estate planning is the process of planning for the accumulation, conservation and distribution of estate assets that most closely accomplishes your personal and family goals.
The five main goals of estate planning are to (1) live life fully, (2) pass your property to others according to your desires, (3) provide for guardianship of children who are still minors, (4) avoid probate or use it strategically, and (5) decrease or eliminate taxes.
The four ways to designate where property should go after you die are the following: (1) by will, (2) by law, (3) by contract or life insurance, and (4) by trust or other scheme.
The four steps of the estate planning process are the following:
a. Determine what your estate is worth.
b. Choose your heirs and decide what they will receive.
c. Determine the cash needs of the estate and your estate taxes.
d. Select and implement estate-planning techniques to maximize goals and minimize taxes.
The four different taxes that may be imposed on an estate are (1) estate taxes, (2) gift taxes, (3) unlimited marital deductions limitations taxes, and (4) generation-skipping taxes.
