Estate planning

Estate Planning

Estate planning (/ɪˈsteɪt ˈplænɪŋ/) is the process of arranging for the management and disposal of a person's estate during their life and at and after death, while minimizing gift, estate, generation skipping transfer, and income tax.

Etymology

The term "estate planning" comes from the word "estate" which is derived from the Old French 'estat', meaning 'state, condition, status', and "planning" which is derived from the Old English 'plæg', meaning 'a plan or scheme'.

Related Terms

• Will: A legal document that expresses a person's wishes as to how their property is to be distributed after their death and which person is to manage the property until its final distribution.
• Trust: A three-party fiduciary relationship in which the first party, the trustor or settlor, transfers a property upon the second party for the benefit of the third party, the beneficiary.
• Probate: The judicial process whereby a will is "proved" in a court of law and accepted as a valid public document that is the true last testament of the deceased, or whereby the estate is settled according to the laws of intestacy in the state of residence of the deceased at time of death in the absence of a legal will.
• Power of attorney: A written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter.
• Guardianship: A legal concept where a person who is not the parent of a minor is given the legal authority and the responsibility of caring for the minor's person and property.

See Also

• Estate (law)
• Inheritance
• Life insurance
• Retirement planning

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