What is the primary purpose of an estate plan?

The primary purpose of an estate plan is to manage an individual's asset base effectively in the event of incapacitation or death. An estate plan outlines how a person's assets will be distributed according to their wishes when they are no longer able to manage their affairs or after they pass away. This planning helps ensure that beneficiaries receive their intended inheritance and can also address issues such as guardianship for dependents, healthcare decisions, and minimizing the potential for disputes among heirs.

By establishing a comprehensive estate plan, individuals can dictate how their assets are to be allocated, choose executors or trustees, and establish powers of attorney for financial and medical decisions. This way, they maintain control over their estate and ensure that their personal and financial affairs are handled according to their preferences even in difficult situations.