5 Differences Between Will Planning And Estate Planning
by Mashum Mollah Real Estate 27 July 2020
Many people still reckon that will planning and estate planning are the same thing. However, this is not the case. Both of them are actually very different from each other. Both of them provide instructions regarding how any property will be handled after the owner’s demise. But with estate planning, one can take care of other factors like finances, health, etc., before death as well. Estate planning lawyers help in determining the kind of strategy that is required and assist with producing all documents that are required to get a comprehensive estate plan. This will allow distributing all the property and other assets precisely after death.
What is Will Planning?
In layman’s terms, will planning can be defined as an easy process for creating a last will. This will cover various grounds after death including who should take care of the children, who should take control of the business, who will get all the assets post-death, and other property-related aspects. An executor will also be required at the time of revealing the will and testament. He or she will have to ensure that all instructions mentioned in the will are followed. A will helps to avoid any family dispute that may take place due to property and make legal decisions. Further, creating a will at trustandwill.com saves money as well. If no will is left behind, the family has to hire attorneys and depend on a public trustee so that the will can be properly executed.
What is Estate Planning?
In estate planning, a more intensive process is carried out where different types of documents are created to keep assets secure post-death. In most scenarios, one of these documents is a last will and testament.
Including a Living Will
Additional documents have a framework of various wishes of a person while he or she is still alive. In case a person falls very sick and cannot speak, a living will dictate the type of medical care that he or she wants. Proper instructions are given in the documents. The instructions may include using extraordinary measures, end-of-life care, etc. This type of will helps to save a lot of money and make choices during difficult times.
Estate Planning with a Financial Power of Attorney
A financial power of attorney is an appointee who is designated to handle all finances when an individual fails to do so. All business decisions, financial transactions, and financial choices are made by him keeping in mind the client’s wishes and within certain regulations. It will help to keep all assets protected and ensure the financial stability of the family.
To secure assets furthermore, other documents are available as well. Similar to a last will and testament, a living trust dictates wishes in regard to one’s property and finances. This is an in-depth document that can offer additional security to most of the important assets. The person who receives money from various types of saving like life insurance policies, retirement accounts, etc. is the beneficiary. When combined together, all these documents will offer a strong estate plan that will support the family after death.
Who requires an Estate Plan?
After someone’s death, Estate plans offer a more comprehensive plan of what should be done. If the person is married more than once, has a business, wants to donate assets to charity, or has specific wishes regarding health and property, this is quite an accurate decision. If the individual is concerned about the fact that his or her requests will be ignored or the correct people will not get the assets, the estate plan will be very useful. In many cases when the children are not old enough for inheriting the assets after the parent’s death, the estate plan can help to make an arrangement that will provide them the assets when they are ready and mature.
Ensuring Privacy with Estate Planning
For many people, privacy is a very important factor in an estate plan. Estate plan documents are often not made public after the person’s death, unlike a will. With the help of an estate place, one can save the family’s time and money while ensuring their privacy at the same time so that any legal cases can be avoided after the last will and testament. To ensure all processes go as defined, always hire attorneys from reputed firms like an elder law firm.