Estate planning is the process of anticipating and arranging for the disposal of an estate. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximise the value of the estate by reducing taxes and other expenses.

The term 'estate' immediately brings to mind the image of a rich and wealthy individual. And ‘estate planning’ makes most relate to preparing a will when they are old. However, everyone has an estate, regardless of its size and worth. It is nothing but the difference between your assets and liabilities at the time of your death, which will be inherited by your legal heir(s).

The purpose of estate planning is simply to ensure that at the time of your death, your estate is distributed to the people of your choice or for certain purposes (that you want) in the same way you want it to be passed on / distributed / used, of course in the most cost-effective and tax-efficient way possible. Many individuals shun the mere idea of estate planning since the value of their assets put together may not sum up to a sizeable amount (or to their satisfaction). In fact, estate planning involves very basic issues and having the right documents in place, and not necessarily something complex or pertaining only to the wealthy.

If you are one of such individuals who have been postponing planning your estate, you should keep in mind that if an estate plan is not in place, then the estate would be passed on in accordance with the succession laws and regulations, as applicable. Depending on your religion, these laws could vary and may lead to the estate being passed on to people, merely because of their relationship with you and much against your desire.

No doubt estate planning involves property matters, but it could also include decisions regarding donations to charitable institutions that you want to make, taking care of specially abled children / disabled relatives, your own medical costs in case of any disabilities, taxes, and so on. Making adequate provision for these is imperative and the same can be achieved with proper planning. This process is a continuous one and should be treated as an integral part of financial planning.