Question

Estate planning is designed to:

A) Avoid disposition of assets to the possible beneficiaries.
B) Minimize the taxes involved in the transfer of assets.
C) Create a situation of intestacy.
D) Increase the dividend income.
E) Enhance the market value of the assets

Answer 1

Estate planning is designed to facilitate the transfer of assets to heirs while minimizing taxes involved in the transfer.

Step-by-step explanation:

Estate planning is designed to facilitate the transfer of one's assets to their heirs in a private manner, outside of probate court. The main objective of estate planning is to minimize the taxes involved in the transfer of assets, by using strategies such as establishing trusts, gifting assets, and utilizing tax exemptions and deductions. By minimizing taxes, individuals can maximize the amount of wealth that can be passed on to their heirs.