What is included in the estate planning process?

The estate planning process primarily focuses on the systematic approach to managing an individual’s assets and liabilities in order to ensure their wishes are fulfilled after their death. Key components of this process include the creation of wills and the establishment of powers of attorney. A will is a legal document that outlines how a person's assets will be distributed, while powers of attorney designate someone to make financial or health care decisions on a person's behalf if they become incapacitated. These tools are fundamental in providing clarity and direction regarding an individual's intentions, making them integral to effective estate planning.

While investing in the stock market and applying for life insurance policies are important aspects of financial planning, they do not directly pertain to the estate planning process itself. Similarly, setting up an emergency fund is a prudent financial strategy for managing unexpected expenses but falls outside the specific scope of estate planning. Thus, creating wills and establishing powers of attorney are the core elements of the estate planning process, ensuring that an individual’s preferences and responsibilities are appropriately addressed.