Evaluate the tools commonly used in estate planning, including trusts, life insurance, and annuities.

Trusts: Trusts are a legal arrangement that allows one or more trustees to manage assets on behalf of another person, often for estate planning purposes. They can be used to minimize taxes, protect assets from creditors, and transfer wealth to future generations in an efficient manner.

Life Insurance: Life insurance provides financial protection for an individual’s family and loved ones in the event that the insured dies prematurely. It can also be used as a source of cash when needed for estate planning purposes such as paying off debts or taxation liabilities.

Annuities: Annuities offer individuals with a guaranteed income stream over time, typically funded by investments such as stocks and bonds. This type of investment is especially useful for retirement planning since it provides steady income throughout retirement years which can reduce the burden on other family members if something happens to the primary breadwinner.