What is Estate Planning vs Will?

Many people consider estate planning and creating a will the same, however one is just part of the other. Basically, an estate plan is a more widespread plan of action for your assets that may apply throughout your life in addition to after your passing. A will, however, dictates where your assets will go after you pass away, who is going to be the guardian of your children, etc. Therefore, whereas a will is usually part of an estate plan, an estate plan details much more. If you’re considering creating your will or devising an estate plan, it can be wise to meet with a local financial consultant.

What Is a Will?

A will is legal documentation that details how you want your assets to be distributed following your passing. It can specify your wishes when it comes to how your children are going to be cared for following your passing. Wills additionally name an executor that oversees carrying out the details in your will.

You can get together an estate planning attorney to devise a will. Nevertheless, there are also several online resources that can guide you through the will creation process.

It’s usually wise to have a will since it has clearly defined conditions. Not having a will, your heirs might end up needing to spend a lot of time, money and energy establishing how to distribute your assets through the estate court system in your state. And when you pass away intestate, meaning not having a will, the succession laws in the state in which you live are going to determine how your property is allocated. This process can be prolonged, and your assets could go to those you didn’t inherently want them to go to.

What Is Estate Planning?

Estate planning is considerably broader and more complex than devising a will. Whereas a will is a single device, an estate plan involves several devices. Some general inclusions are wills, POA, advance directives, trusts, etc. Estate plans can involve both DPA for your finances and HCPOA for medical decisions should you be incapacitated.

Estate planning might include contemplating topics even beyond legal documentation. These can include things such as deciding who has the power to make healthcare decisions for you while you’re alive, as well as deciding how your assets are going to be distributed following your passing.

Regardless of what estate planning usually includes, it may have as extensive or as limited a focus as one sees appropriate. Those with more complex estates might wish to create involved wills, trusts and estate planning devices. They might even wish to donate to organizations to counterbalance taxes on assets that are going to eventually go to heirs. Nevertheless, if your estate can be allocated and your wishes carried out using just a will, that might be adequate.

How Is Estate Planning Different from Will Planning?

Basically, a will is part of an estate plan, however, an estate plan is more than just a will. Nevertheless, they both fall under the context of estate planning, so you are going to want to understand the restrictions and benefits of both.

While a will is legal documentation, an estate plan is a compilation of legal documents. More accurately, they often include a will, a trust, an advance directive and different types of POA. An estate plan can oversee other estate planning concerns that can’t be covered in a will also. A will is a good place to begin, but you are going to want to create an estate plan to guarantee that your heirs are completely covered in the event of your passing.

It’s normal to think that wills are for the regular person and estate plans are for the rich. Nevertheless, this is completely untrue. It doesn’t matter how large an estate you have, there are always vital grounds to cover. For instance, you are going to want to plan your POA, property transfers and designate a beneficiary on your insurance policies, retirement account, etc.

If you only choose to devise a will, you could cause headaches for your loved ones in the future. Your estate might go into probate, which can usually be a stressful and costly process for those involved. Additionally, your assets might end up being subject to substantial taxes. Additionally, they may not go to the people or organizations that you wish to benefit from them.

Estate Planning

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Collaborative divorce can make these challenging times more manageable. It requires you to work with your spouse at a time when you have decided you need to go your separate ways. When it comes to child custody, though, you want to do all you can to make the right parenting decisions. Collaborative divorce can help create pathways for you to cooperate. If you live in the Phoenix/Scottsdale area and want to learn more about collaborative divorce, contact Ogborne Law today.