Estate Planning
Financial term in the General category
Definition
The process of arranging how your assets will be distributed after death and making healthcare decisions if you become incapacitated. Includes wills, trusts, and powers of attorney.
Related Terms
Will
A legal document specifying how assets should be distributed after death and naming guardians for minor children. Must go through probate court to be executed.
Trust
A legal arrangement in which one party, called the trustee, holds and manages assets on behalf of another party, known as the beneficiary. Trusts can be used to control how and when your assets are distributed, potentially reduce estate taxes, and avoid the probate process. There are many types of trusts, each designed to address specific financial and estate planning goals.
Beneficiary
A person or entity designated to receive assets from a trust, insurance policy, retirement account, or will after the owner's death.
Frequently Asked Questions
What is Estate Planning?
The process of arranging how your assets will be distributed after death and making healthcare decisions if you become incapacitated. Includes wills, trusts, and powers of attorney.
Why is Estate Planning important in personal finance?
Estate Planning is an important general concept that helps individuals make better financial decisions. Understanding Estate Planning can improve your financial planning and help you achieve your money goals.
How does Estate Planning relate to Will?
Estate Planning and Will are related financial concepts. A legal document specifying how assets should be distributed after death and naming guardians for minor children. Must go through probate court to be executed.
More General Terms
View all General termsGet Personalized Advice
Ask Warren AI how Estate Planning applies to your specific financial situation.
Try Warren Free