What is the purpose of estate planning?

The purpose of estate planning is fundamentally to manage and allocate assets in preparation for death. This process involves creating a comprehensive strategy that addresses how one's assets will be distributed upon their passing, ensuring that the individual's wishes are honored and that loved ones are taken care of after they are gone. Estate planning can also include considerations like setting up trusts, writing wills, assigning powers of attorney, and specifying guardianship for dependents, which all serve to provide clarity and organization regarding the disposition of assets.

While accumulating wealth during one’s lifetime and minimizing taxes can be elements of financial planning in general, they do not specifically encapsulate the focused intent of estate planning. Additionally, reducing healthcare expenses is relevant in other areas of financial management but is not a primary goal of estate planning itself. The essence of estate planning lies in preparing for the future management of one's wealth and ensuring it is allocated as desired after death, which is captured accurately by the correct answer.