A common misconception about Estate Planning is that to plan an estate one must have massive wealth. However, Estate Planning is not a prerogative of the rich, anyone and everyone should and can do Estate Planning.
Estate Planning is simply the process of making it clearly known how you want your estate to be handled after your death or if you’re incapacitated and unable to handle things on your own. The most common Estate Planning definition is — "the process of making plans for the management and transfer of your estate after your death, using a Will, Trust, Power of Attorney (financial or durable), insurance policies and/or other devices." Estate Planning has been around for many years, but it’s becoming increasingly more and more common.
Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after his/her death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated.
Estate planning is important, as it eliminates the burden of legal heirs having to bear the taxes of transferring the assets had the estate not been planned. In case the beneficiary is a minor, a guardian is assigned until the minor becomes 18 years old.