Do You Know Difference Between Will Planning And Estate Planning?

Now to begin with, there is no doubt that both will planning and estate planning are legal entities that deal with some set of instructions on how to handle your property post your death? Or further down the lane it’s a process of legally outlining your wishes regarding your finances, health and other associates while you are already alive. Sounds confusing? Well, although in real world the terms are used interchangeably in practical application, they actually vary vastly. And that is why approaching the rightful estate planning lawyer or will planning lawyer is absolutely necessary to avoid any future property issues.

Do You Know Difference Between Will Planning And Estate Planning?

What is a will?

To put in simple terms, will is a final legal document that describes the last wishes of any deceased. It describes who should take care of the deceased’s properties, finances, family keeping, business or other associates.

What is a will planning?

A will planning thus involves creating of the last will/wish or testament of a person. Thus by creating a will you can legally dictate on who controls your business, your finances, your properties, or takes care of your children post your death. Creating a will plays immense role in the long run as it successfully reduces any kind of dispute in the family regarding properties.

However, while you are will planning never forget to appoint an executor as well. An executor is a person legally mentioned in the testament, who will be responsible for executing all your wishes mentioned in the will.

What are the assets which are not covered?

Now although a proper will does resolve most of the property related disputes, however there are a number of assets which although mentioned in a will are not inherited. Some examples include:

  • In case you have a joint tenancy with right of survivorship

This indicates the properties you co-own with other individuals. In case it is your spouse it will be transferred to them by default even without the help of any will.

  • Life insurance policies

Generally most of the life insurance policies comes with option of having beneficiaries where you can clearly mention you can claim the amount post your death.

  • Bank accounts

As same as insurance policies, bank accounts also have certain transfer on death options. Once you are in touch with the leading property settlement lawyers Perth, they will walk you through the steps on how to assign such beneficiaries to your bank accounts.

  • Retirement plans

Lastly on retirement plans, you can designate the name of beneficiary who will get control over the plans and benefits.

What is an estate planning?

Now estate planning is a tad bit more difficult and vigorous process for securing all your assets post your death. Here are some of the documents that comes under the genre of estate planning

  • Living wills

A living will dictates a set of legal instructions that is to be carried out on how to handle you while you are living. In simple terms, it generally deals with what kind of medical attention is to be given to you or whether certain end of life care steps to be taken in case you are living but unable to speak or make those decisions for yourself. Sometimes such wills help in saving families a huge chunk of money.

  • Planning with financial power of attorney

The designation of financial power of attorney is somewhat similar to living will. It dictates how the appointee or the person mentioned as financial attorney will handle your finances including all your financial transactions, business decisions, various predetermined business choices in accordance with your wishes once you are unable to make those decisions yourselves.

  • Beneficiaries

Beneficiary designation is a process of clearly mentioning you will receive your bank balances, insurance amount or other finances.

Also sometimes for large properties leading property settlement lawyers advices for putting up a trust in the last will or testament who are guided in accordance to your will to handle your properties and finances.

Why should you need an estate planning?

In case you are wondering on why you need an estate planning then here are few situations when estate planning helps your family to figure out what you wanted in that wake of those moments.

  • In case you have more than one marriages or families from such marriages.
  • In case you own business or ventures
  • In case you want to donate portions of your property into charities.
  • In case you have some special request or demands regarding your body parts or property parts
  • In case your kids are not matured enough or fitted enough to handle your estates you can opt for putting up a trust until they become one.

What are the few things to look for while drafting your estate plan?

Generally most of the leading property settlement lawyers near me in the Perth region walks you through each of the steps of estate planning however here’s a couple of last minute tips to keep in mind:

  • Draft your estate plan in such a way that your beneficiaries receive what you want them to receive
  • Always make sure that your assets and properties are distributed in clear language in an efficient way
  • Always try and avoid all unnecessary taxes or claims or any fees from creditors
  • Make sure for adding norms to protect your rights and interests in case you are incapacitated
  • Make sure to have proper protection plans for your kids, minors and dependents
  • It’s always best to choose a clear and efficient division of assets to avoid bickering amongst family members in near future.

To conclude

Although there is a belief that property planning is for rich and older people the reality is it’s never too late to start planning. So regardless of your age, gender or amount of assets you own having a clear estate plan helps you secure your and your family’s future for any situations. So search the web and from client testimonials, references and reviews choose the leading property attorneys in Perth.

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Article Author Details

William James