Earl Davis Brooklyn - Will vs Estate Planning | What is The Difference?

Distinguish Between Will Planning V/S Estate Planning

Will Planning V/S Estate Planning

Will planning can be a relatively simple process

Estate planning is a more intensive process

A will is a legally binding document

Estate planning is the process of

that contains information about the

arranging the distribution of assets

distribution of assets after your

in a way that results in maximum

death.

benefits to the beneficiaries

With an estate plan, you can give direction regarding additional matters that cannot be handled by a will — even if they are mentioned in a will. An estate plan typically, but not necessarily, includes the following.

Wills Trusts Power of attorney Beneficiary designations Superannuation Property transfer Transfer of financial assets

How Is Estate Planning Different From Will Planning?

In short, wills are part of an estate plan, but an estate plan is more than just a will. However, they both fall under the umbrella of estate planning, so you’ll want to understand the limitations and benefits of each.

While a will is a legal document, an estate plan is a collection of legal documents. More specifically, they often including a will, trusts, an advance directive and various types of powers of attorney.

An estate plan can handle other estate planning matters that can’t be covered in a will too. A will is a good place to start, but you’ll want to create an estate plan to ensure that your heirs are fully covered in the event of your death.

Conclusion The purpose of wills and estate plans is to ensure that your family members receive continuing care after your demise. The popular notion that wills and estate plans are for the rich is not true. Anyone who owns a car, house, bank accounts, business, and other assets can create a will/estate plan to transfer the assets to the loved ones.

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