Estate planning is the process of making a plan in advance to manage an individual’s assets and obligations in the event of their incapacitation or death. It involves setting up a plan that establishes who will receive an individual’s assets, as well as how their affairs should be handled if they are unable to handle them on their own. Estate planning is important for many reasons, including ensuring that an individual’s wishes are carried out exactly and in the most tax-advantage manner. Estate planning may involve creating a will, which is a legal document that outlines how an individual’s estate should be distributed after they die. It may also involve advanced estate planning techniques such as trusts, gifting strategies, and tax planning.
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