The term "estate" consists of all the property a person owns or controls, whether in his or her sole name, held in a partnership, in a joint ownership arrangement, or through a trust, and all other monies that would be generated on the person's death, such as through life insurance.

Estate planning is the process of accumulating and disposing an estate to maximize the goals of the estate owner. 

Without proper planning, the Internal Revenue Service and California Franchise Tax board stand to "inherit" a large portion of the assets of an estate.

The various goals of estate planning include: Maximizing the amount of the estate that passes to the estate owner's intended beneficiaries, declaring end of life health care wishes, nominating guardians for minor children, avoiding conflict between beneficiaries, ensuring tax benefits, and avoiding costly probate court involvement. 

Creating a proper estate plan allows you to protect your financial legacy, lay out your health care wishes, and nominate guardians for minor children.