A lot of people assume that estate planning and will planning are the same thing. However, while they go hand in hand, they are not interchangeable terms. These are actually two distinct and different processes.
Both of these processes are going to provide your loved ones with directions about how your property should be dealt with after you die. However, estate planning is much more extensive when it comes to outlining your wishes with regard to your finances and health.
In order to better understand the subject, let’s look at the details of estate planning vs will planning.
What Is Will Planning?
Will planning is a fairly simple process. It involves drawing up a last will and testament. Your will is going to state who should take care of your kids after you die, who receives your assets, who should take over your business if you run one, and other relevant concerns.
Your last will and testament is also going to require the appointment of an executor. This person is going to be in charge of making sure that all of the directions left in the will are followed properly. Making a will is going to help your family avoid disputes over money and property and it’s going to make legal decisions after your death a lot easier.
Making a will is also going to save your family money because your family will need to hire lawyers to execute your property otherwise.
What Is Estate Planning?
Estate planning is a thorough plan that includes documents that are effective while you are still alive. It also includes documents that only go into effect after you are dead.
Combined, these documents state who has the power to make financial and medical decisions on your behalf while you are alive and who gets your property after you die.
It can be very helpful to have a lawyer help you draft your estate plan. You need to make sure that the plan is legal includes all of the necessary information. It is also very important that you update your will.
You don’t want to have the same will when your children are young and when they finally grow up. You should also update your will after any major life event, like a marriage, divorce, birth, or the death of a close relative.
The more comprehensive your estate plan is, the easier time your family will have after you die.
The Importance of Knowing Difference for Estate Planning vs Will
Hopefully, after reading the above article, you now have a better idea of the difference between estate planning vs will planning. As we can see, both processes are important but distinct.
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