Difference Between Will and Estate Planning
An estate planning and will are powerful legal documents that let you declare where your assets will go after your demise. Often, everyone assumes will and estate planning’s are the same things – which they’re not.
Of course, these processes go hand in hand, but some key differences make them unique.
Let’s discuss the significant differences between both, which will help you decide what is best for you.
What is a Will?
A will is a simple process that involves creating the last will and testament. It is a document which states where your property will go once you pass away.
It will dictate who should take guardianship of your minor kids after your passing, who should take over your business, who receives your assets, and another property-related wish.
- You will have to decide the distribution of all your property and where it goes.
- You can address your own will, or you can download a template through online websites.
- You can also hire an expert attorney for a hassle-free process.
- You have to sign the will in front of two non-related witnesses and an executor. The executor will make sure that your wishes in the will are carried successfully.
What is an Estate Planning
Most people think that estate planning is for prosperous folks and has various income sources and properties. But, it’s for everyone who wants to rest in peace and distribute each assent correctly.
Estate planning is a pervasive process that is very broad. It makes sure you cover all the aspects of monetary elements, so beneficiaries get the maximum out of it.
It covers physical and immaterial assets. Physical ones like residences or other real estates. Transportations includes vehicles, bikes, yachts, collectibles such as coins, artwork, antiques, or other individual properties.
Immaterial assets like savings accounts and records of deposits, funds, securities, and mutual funds. The Life insurance policies, retirement plans, individual retirement accounts, and health saving accounts.
It may include:
- Trusts, which can be a living trust
- Power of attorney
- Recipient names
- Wealth transferal
- Transfer of monetary assets and much more.
Critical Differences Between Estate Planning and Will
- A will is a component of estate planning, but the latter includes much more than the will. This is because estate planning has taken so many subjects under consideration and ensures the proper distribution of property.
- A will is a straightforward process in which you decide your beneficiaries. However, it may prove troublesome when the division is not clear after your demise. This can lead to probate and lots of misunderstandings.
- On the other hand, estate planning leads to very rare probate and misunderstandings. This is because all your taxes, life insurance, and debts are included with detailed information. It’s a secure way of handling your assets.
- An experienced lawyer will look for how your beneficiaries can benefit through your investments and don’t leave a single option open in estate planning. But, unfortunately, a will may sometimes overlook sudden essential aspects.
- Estate Planning is the process by which one plans to distribute their assets during their lifetime and after their lifetime. A will generally come in power after your death.
The decision of handing over your assets and guardianship of minor children and pets is very vital. You may think you don’t need it yet, but it’s a prudent step for everyone. Contact an attorney for easy and professional advice.
Estate planning and will, although a part of each other, are different. You can decide what’s best for you and go through the process accordingly to ensure a sense of security.