What’s the difference between a will and estate planning?

Estate planning

Well, a will is a legal document that passes ownership or transfers ownership of your assets to beneficiaries when you pass away, whereas estate planning involves a much broader consideration. Estate planning often includes the preparation of a will but it usually encompasses other types of documents.

For example, you may need to have an enduring power of attorney prepared that deals with your assets if you were to lose capacity. Or you may require documents to deal with your superannuation. You may also require documents to be prepared that deal with any family trusts or companies. A will isn’t necessarily going to deal with all of your assets and that’s where the estate plan comes in to make sure that all of your assets are taken into consideration.

However, an estate plan is not just about your assets; there can be other matters that should be considered by someone who’s undergoing estate planning. You may need to consider who will take care of your children if they’re under the age of 18 and you were to pass away. So, an estate plan doesn’t just consist of what happens to your assets; it’s also about providing for the people in your life and making sure there’s documentation in place to address this.

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