November 21, 2024
Is Estate Planning the Same as a Will?
An estate plan and a will are essential legal documents for a person who cares about their assets and loved ones. Although they both aim to provide information about distributing your property to your heirs, they have some differences in their complexities, as an estate plan is much more detailed and comprehensive than a will. However, you should be precise while preparing both and mention your wishes clearly.
What is an Estate Planning?
Estate planning is a more personalized procedure that involves a person’s wishes while living and takes care of their intentions after their death. It makes sure that your beneficiaries are left with the highest proceedings that they can get out of your estate. It includes living and last wills, trusts, power of attorney, beneficiary designations, superannuations, details about the division of the property, and transfer of financial assets.
What is a Will?
A will or a last will is a legal document specifying your intentions about distributing your assets after your death. Further, it also includes the name of an executor who executes all your wishes in the way you stated in your will. You can also add the guardian names for your minor children or your elderly family members. A well-written will ensures that there is no confusion about the distribution within your heirs. It saves them from the intestate procedures by the court and paying extra fees to the attorneys.
Benefits of an Estate Plan Over a Will
- Eliminates or reduces taxes: Anyone who inherits money from the deceased faces the problem of paying taxes. While tax is not resolved in a simple will, it is reduced if not completely eliminated in the case of an estate plan through setting up a trust.
- Avoids probation: A will might still go under the probate process if its validity is challenged in court. The probate process is a lengthy, time-consuming procedure no one wants to be involved in, especially at a time of grief. However, an estate plan explains every detail; hence there is no chance of being challenged.
- Protects your loved ones from financial worries: An estate plan not only states the guardians of your beneficiaries, whether minor or old, it also protects them from financial troubles by providing them more than the value of your assets through growth in investments.
- Includes both a living and the last will: An estate plan is better than a will because it contains both kinds of will protecting your property while you are alive and after your demise. A living will is created in case of severe disease where you can no longer make decisions about your health and property. It states how you want to be treated while in a vegetative state. In contrast, a will only has the wishes about your assets you want to fulfill after death.
About Castle Wealth Group
Are you searching for reliable and quality services for estate planning and creating a will? At Castle Wealth Group, we build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website or call us at 844.885.4200 or email us for your financial advice.