What is the role of estate planning?

The role of estate planning is primarily to arrange the distribution of assets after an individual's death. This process involves creating a comprehensive strategy that ensures a person's wishes regarding their assets, such as property, savings, and any other valuables, are honored and efficiently executed according to their desires. Estate planning can involve drafting wills, establishing trusts, and setting up powers of attorney, which collectively help manage one’s estate and provide clear instructions for heirs and beneficiaries.

By planning ahead, individuals can minimize potential estate taxes, avoid probate, and reduce conflicts among heirs. In essence, it ensures that the individual’s intentions for their wealth and possessions are carried out smoothly and legally, providing peace of mind both for the individual while they're living and for their loved ones after they're gone.

The other options relate to financial management practices that do not align with the specific objectives of estate planning. For instance, managing daily finances and budgeting pertains to personal cash flow management, while avoiding investments in real estate and consolidating debts are distinct financial strategies that do not involve the end-of-life asset distribution concerns addressed by estate planning.