What is the primary purpose of estate planning?

The primary purpose of estate planning is to ensure that an individual's assets are distributed according to their wishes after their death, and that any outstanding debts are settled properly. This overarching goal encompasses a range of considerations that individuals must address when planning their estates, including the designation of beneficiaries for their assets, the management of tax liabilities, and arrangements for debts that must be cleared. By creating a comprehensive estate plan, individuals can specify who should receive their property, how their financial obligations should be handled, and who will act on their behalf in executing these wishes—essentially ensuring their intentions are honored.

While minimizing taxes and establishing guardianship for minors are important aspects of estate planning, they are secondary to the fundamental goal of asset distribution and debt resolution. Similarly, the creation of charitable foundations may be a specific intent within an estate plan but does not represent the primary purpose of the broader estate planning process. Therefore, the focus on clear distribution of assets according to the owner’s wishes is what makes this option the correct answer.