estate-planning

Vocabulary Word

Definition

'Estate planning' is about preparing for how your assets will be distributed after your passing. This is to reduce the uncertainties of what happens to your stuff when you are not around anymore.

Examples in Different Contexts

In wealth management, 'estate planning' involves creating a strategic plan for managing an individual's asset distribution after their death. A financial planner might say, 'Estate planning is crucial for ensuring that your assets are distributed according to your wishes and can help minimize estate taxes.'

Practice Scenarios

Finance

Scenario:

Given the hefty inheritance tax that your heirs could face, you might want to consider the available avenues for wealth preservation.

Response:

It's crucial to minimize the tax burden on my family. I'll take this into account during my estate planning.

Law

Scenario:

There are legal considerations about what happens to your assets after you're gone. It's essential to have legal documents in place.

Response:

I want to ensure my assets are distributed according to my wishes. I realize now that estate planning is pivotal.