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When people hear the word 'estate' they oftentimes think of a sprawling mansion situated on acres of land. While it's true "estate" can refer to assets belonging to wealthy people, it also refers to assets belonging to a person who has died.

An estate can consist of real estate holdings, financial portfolios such as investment and retirement accounts, automobiles, motorcycles, watercraft, and personal belongings such as jewelry and collectables. Estates can range in value from a few dollars to several million and include all the worldly possessions the decedent established throughout his lifetime.

Many people believe that if they don't own anything of value there is no reason to engage in estate planning. Nothing could be further from the truth.