Most people know that they should have a will to make sure that their assets get distributed appropriately after their death, but is a will all you need? What is estate planning? Is there a difference between estate planning and a will? How do you know which you need? 

What is a Will?

A will is a written document that outlines your wishes and provides detailed instructions for several things after your death, including:

• The distribution of your assets
• Who you want to be the guardian of your minor children
• Appointing an executor who will carry out your wishes and administer your estate (i.e., pay outstanding debts and taxes)

A will only takes effect after your death, so it does not include provisions for how to manage your assets if you become incapacitated.

Everyone should have a will even if you do not have extensive assets. Without a will, a court will decide about asset distribution and guardianship issues. 

What is Estate Planning?

Estate planning is an overall strategy for managing your assets, your health, and your legal affairs both during your life and after your death. Estate planning includes a will, but is much broader and helps with many additional issues like minimizing taxes and protecting your assets.

In addition to a will, estate planning often includes:

Trusts

There are many different kinds of trusts that help you manage your property and other assets, protect those assets from the probate process after your death, and provide various tax benefits. If you have minor children, establishing a trust is a great way to ensure that you can continue to provide for them long-term, especially if you have a special needs child.

Power of Attorney

A power of attorney document designates a trusted individual to make financial, medical, and legal decisions on your behalf if you are unavailable (e.g., out of the country) or incapacitated due to illness or age. 

Healthcare Directives or a Living Will

Although it can be uncomfortable to think about, it’s important to clearly outline your wishes for medical treatment and care, if you are ever unable to make or communicate those decisions for yourself. Rather than leaving your spouse or other family members to have to make painful choices during a very emotional and stressful situation, you can choose for yourself about resuscitation, feeding tubes, pain management, life support, and end-of-life care.

Taxes and Other Financial Planning

An estate planning attorney can help you minimize the impact of taxes on your estate to help you maximize your enjoyment of it during your lifetime. They can also help you protect your assets in cases of divorce or bankruptcy. An estate plan also allows you to designate beneficiaries for all your accounts.

Estate Planning Customized to Your Goals

While having a will is important, it is just one piece of the whole puzzle. Effective estate planning allows you to provide guidance about your wishes after death but also if you become incapacitated, as well as helping you manage your estate now. The estate planning group at Lonich Patton Ehrlich Policastri (LPEP Law) can help you customize your estate plan to meet your goals of protecting your assets and your family both now and in the future. Call LPEP Law to schedule your free, no-obligation consultation to get started today.

 

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.