An estate plan and a will are both important documents for anyone who wants to leave behind a legacy for their loved ones. While they are similar, there are key differences that separate the two. In general, an estate plan is more detailed and more comprehensive than a will. Anyone who wants to go beyond simply bequeathing property to those closest to them should consider an estate plan rather than a will.

And anyone interested in estate planning should get the right people to help them bring that plan to fruition. Wills and Wellness Estate Planning has the experience and skill to create an estate plan that will help to take care of any loved ones long after their benefactor has passed on.

The Difference Between a Will and an Estate Plan

One of the reasons why there is some confusion about these two terms is that a will is part of an estate plan. That means the following conventions of a will are included:

• The people whom you want to inherit your assets
• The person who you want to be the guardian of your children
• An executor to oversee the execution of your will

The executor needs to determine if a Grant of Probate is necessary. In this way, they’ll have the legal authority to administer the deceased person’s estate. Families can benefit from will power estate protection by seeking the help of a professional probate service following a loved one’s death. 

Once the executor obtains a Grant of Probate, the estate administration can start according to the will’s terms and conditions. During this time, the executor can search for the deceased person’s beneficiaries, collect assets, transfer or sell the properties, and settle outstanding debts. 

If you fail to create a legally valid will, the court will decide on the best person to administer your estate under the inheritance law. And that person may need to get a Grant of Letters of Administration. 

On the other hand, an estate plan is an upgraded version of a will. An estate plan contains a will or trust, letter of intent, durable power of attorney, guardianship designations, beneficiary designations, and healthcare power of attorney. Moreover, if you’re wondering is it possible to have more than one life insurance policy; it certainly is, and estate planning considers insurance products, such as long-term care insurance for financial support during old age and life insurance to protect your assets and for your beneficiaries to receive money even without probate.

So, all the provisions of a will are accounted for, but an estate plan also adds further considerations that make the distribution of assets easier. It also adds the following arrangements:

• It includes a living will that dictates how you want to be treated should you become incapacitated and cannot make decisions for yourself
• An estate plan can help set up a living trust for your inheritors which determines how and when you want your assets to be allocated

Essentially, an estate plan provides better and more detailed protections for your beneficiaries. 

Who Needs An Estate Plan?

Everyone. An estate plan is not just for the rich, any assets you have count as an estate, such as your home, your vehicle, your checking and savings accounts, or your valuables. That means that practically everyone has things that they wish to pass on when they pass away. That is why a will is not enough, you need a more detailed plan to make sure that those you love are cared for and protected once you are gone.

The Benefits of Having an Estate Plan

The main benefit of an estate plan is that it eases the tax burden on the heirs. Estate taxes and inheritance taxes are some of the taxes inheritors can face when they receive an endowment. An estate plan can be used to set up a trust or a plan that can be used to reduce, or completely eliminate tax bills.

An estate plan also helps people to avoid the probate process. Probate is the legal process of proving the validity of a person’s last will and testament. It can be a lengthy, painstaking procedure that many people would be happy to avoid. An estate plan helps to eliminate the probate process, which makes things easier for your loved ones.

An estate plan is also useful for protecting all of your beneficiaries, that goes for both young children and adults. It protects young children because you can designate a trusted person to take care of them in the unfortunate event that they lose both parents. If there is a worry that an older heir may end up in dire financial straits after their inheritance, because they are irresponsible, at risk of losing it in a divorce, or for any other reason, then an estate plan can mitigate that possibility.

An Estate Plan Helps You and Your Family

Creating a will is not enough if you want to protect your legacy and ensure the continuing well-being of those closest to you; if you want to do both, then you need to make an estate plan. An estate plan ensures that your loved ones will be taken care of in exactly the way that you want without having to worry about the courts or excessive taxes. You take care of those closest to you when you are alive and with an estate plan, you will continue to take care of them even after you are gone. So contact a qualified estate lawyer so that you can make plans to protect your assets and your loved ones.