Passing The Torch Watch Video
The estate of an individual can be described as the collective assets owned by that individual and, if any, the related liabilities. Accordingly, anyone with assets needs an Estate Plan.
Estate Planning is the art of designing a plan for the effective enjoyment, ownership, management, control, and subsequent disposition of assets (during life, upon death, and after death), at the minimum tax cost.
Regardless of age, the Estate Planning process cannot be ignored. It is an essential and important part of personal financial management. Many believe that Estate Planning is only for those who are of advanced age or who are approaching death. This is a misconception. The waste of a single asset to taxes could hinder the accomplishment of the desired objectives and bring hardship to the family unit or business. For this reason, Estate Planning may be even more important to the owner of a small or medium sized estate than to the owner of a large estate.
The fundamental objective of Estate Planning is to nurture wealth building in one's own estate while minimizing the overall tax burden for all beneficiaries.
Thus, Estate Planning is all of the following:
- The creation of wealth
- The preservation of wealth
- The conservation of the estate at death, or even beyond death