“While a will is often part of an estate plan, an estate plan covers much more ground.”
An estate plan is a broader plan of action for your assets that may apply during your life, as well as after your death.
However, a will states the way in which your assets will go after you die.
Yahoo Finance’s recent article entitled “Estate Planning vs. Will: What’s the Difference?” explains that a will is a legal document that states the way in which you’d like your assets to be distributed after you die.
A will can also detail your wishes about how your minor children will be cared after your death, and it names an executor who’s in charge of carrying out the actions in your will. Without a will, the state’s probate laws determine how your property is divided.
Estate planning is a lot broader and more complex than writing a will. A will is a single tool. An estate plan involves multiple tools, such as powers of attorney, advance directives and trusts.
Again, a will is a legal document, and an estate plan is a collection of legal documents. An estate plan can also handle other estate planning matters that can’t be addressed in a will.
A will is a good place to start, but you’ll want to create an estate plan to ensure that your family is fully covered in the event of your death.
While having a will is important, it’s only the first step when it comes to creating an estate plan.
To leave your heirs and loved ones in the best position after your death, you should talk to an experienced estate planning attorney about creating a comprehensive estate plan, so your assets can end up where you want them.
Reference: Yahoo Finance (Aug. 10, 2021) “Estate Planning vs. Will: What’s the Difference?”