It is the one of the most thought  over and confusing topics of an individual life. It can be explained in many ways but most easily understood explanation is as under -:
Everything which one owns forms his estate, be it bank balances, real estate, investments, life insurance, personal possessions, etc. After the person is no more, his wish, in relation to beneficiary of  inheritance, entailing mechanism with regards to taxes, legal and court fees roughly forms the estate plan.

A complete and better estate plan also includes details about health attorney, guardian of minor children, provision for a family member with special needs, provision for transfer of business at retirement, disability or death, provision for minimization of taxes, legal fees, and court fees.