estate planning
Estate planning is the process by which an individual or family arranges the transfer of assets in anticipation of death. An estate plan usually intends to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. A major concern for the drafters of estate plans is applicable federal and state tax law.
An estate is the total property (real and personal) owned by an individual prior to distribution through a trust or will. For example; cars, homes, land, household items, and bank accounts. Estate planning distributes the real and personal property to an individual's heirs.
Wills and trusts are common ways that individuals protect and transfer their wealth. Trusts, unlike wills, have the benefit of avoiding probate, which is a lengthy and costly legal process that oversees the deceased person's transfer of assets. An individual may also make inter vivos gifts (gifts made while the donor is alive) in order to minimize taxes. The federal gift tax also exempts certain levels of lifetime gifts. See also: estate tax and estates and trusts.
Federal Statutes
U.S. Code: 26 U.S.C. Subtitle B- Federal Estate Gift Tax
Federal Agency Regulations
Code of Federal Regulations: 26 C.F.R. Chapter 1, Subchapter B - Estate (Part 20) and Gift Taxes (Part 25)
State Statutes
- Uniform Laws:
- State Statutes Dealing with:
Additional Resources
- Internal Revenue Service
- National Association of Financial and Estate Planning
- National Network of Estate Planning Attorneys
- American Academy of Estate Planning Attorneys
Illustrative Cases
- Leff v. Fulbright & Jaworski, L.L.P 78 A.D.3d 531 (2010)
- Hall v. Kalfayan,190 Cal. App. 4th 927 (2010)
- Estate of Moore v. Commissioner of Internal Revenue, 2020 TC Memo 40 - Tax Court 2020
[Last reviewed in September of 2025 by the Wex Definitions Team]
Wex