Setting your finances up for your loved ones in the case that you pass is exceptionally important. It’s often the case that families get into disputes over a loved one’s money if there isn’t clear guidance on how to handle it.
So, it falls upon you to have a plan for your money in the event that you pass. There are two common areas of planning that need to get taken care of for a lot of people; estate planning and will planning.
We’re going to talk about the difference between estate planning vs will planning today, giving you some insight into what each one means.
Let’s get started.
What Is An Estate Plan?
Estate planning is the process of determining what is to be done with your possessions in the event that you die as well as the procedure to follow if you’re unable to make decisions for yourself.
For example, you can specify the way that you’d like things to be carried out in the event that you’re unable to communicate after an accident. You run through various documents with estate planning services and those documents dictate the way that your assets will be distributed and handled.
Your estate plan could also name the individuals who are charged with the care of your minor children in the event that you pass.
Who Needs Estate Planning?
Estate planning isn’t always necessary. If you have no children and live with a spouse who is your clear and evident beneficiary, it might be possible for you to get by without doing any estate planning.
That said, those who have children and large extended families should do their due diligence and plan their estate. Further, anyone with businesses, multiple properties, or other assets should certainly dictate what they want to be done with those possessions.
While the last thing you want to think is that your family will fight and burn bridges, it’s very hard to anticipate how people feel about their entitlement to different sums. That ruins relationships and makes it even harder for your grieving family.
Further, the lack of a will or estate plan might require your family members to hire attorneys and deal with extra, costly steps that aren’t necessary.
What Is a Will?
The last will and testament fall within the category of estate planning. The will is the document that dictates who takes care of your kids, who gets your business, where your assets go, and anything else having to do with your property.
You also get to choose the person who delivers these goods, called an “executor.” They’re the person charged with the task of handling the nuances of the execution of your will.
Want to Learn More About Estate Planning Vs Will Planning?
Figuring out how you’re going to handle your estate planning vs will planning can be a challenge. The more insight you have into the process, the more effective you can be with it.
We’re here to help. Explore our site for more ideas on how to run through your estate planning checklist in the best way possible.