What is estate planning?

• A. Choosing investments to maximize returns.
• B. A plan for budgeting monthly expenses.
• C. Arranging for the management and distribution of your estate during and after life, including wills, trusts, and power of attorney.
• D. A list of all debt obligations.

Answer: (C)

Estate planning is about preparing how your assets and affairs will be managed if you become unable to handle them, and how your assets will be distributed after you pass away. It uses documents like wills, trusts, and durable powers of attorney to name who makes decisions for you, who inherits your property, and how medical and financial decisions should be handled. This planning helps keep your wishes clear, can reduce court time and taxes, and makes things smoother for your loved ones. It’s not about picking investments, budgeting monthly expenses, or listing debts; it’s about arranging control and transfer of your estate.