When it comes to planning for the future and making sure your assets are handled as you desire, estate planning is crucial. While many people believe that an estate plan and a will are one and the same, it is important to understand that while both have vital uses, they are not the same thing. For more information on the difference between estate planning and wills, contact an experienced Sussex County estate lawyer today.
What is a Will?
A will is a legal document that outlines how an individual’s assets should be distributed after their death. The document will name an executor who will be responsible for carrying out the instructions left in the will according to the departed’s wishes. In a will, there should be clear directions explaining who gets what or who is entitled to certain assets, whether it be money, property, or other items.
What is an Estate Plan?
An estate plan is an approach to managing an individual’s assets and affairs both while they are alive and when they die. Estate planning is the process of arranging for the management of an individual’s estate. This plan is comprised of many documents like living wills, trusts, beneficiary designations, and more. The purpose of an estate plan is not only to distribute assets after the individual’s death but also to ensure financial security if they become incapacitated.
Is an Estate Plan the Same as a Will?
No, an estate plan is not the same as a will. A will only matters or takes effect upon the person’s passing. Although a will is important and can be beneficial in dealing with an estate, it has certain limitations.
While a will is one document that addresses how assets will be distributed after death, an estate plan is a strategy and is made up of a variety of documents and provisions. A key difference is that a will is really only relevant after the individual’s death, while an estate plan can offer protection during the grantor’s life.
Wills are subject to probate law as well, while estate plans are generally exempt. Probate is a legal process where a court verifies that a will is valid and oversees the distribution of assets. The process can take months or even years. Estate planning typically allows you to skip the probate process, saving time and money for beneficiaries.
It is also worth noting that an estate plan offers more control and flexibility over how assets are managed and distributed. This is especially true with the use of a trust. Trusts allow more specific and sometimes complex instructions. For example, in a trust, assets can be distributed to the beneficiary over time or under certain conditions. Wills are much more straightforward and do not allow for this type of flexibility.
It can be beneficial to utilize both a will and estate planning. Speak with a skilled attorney for more information and legal advice.
