Understanding the difference between a Will & Estate Plan.
Wills & estate plans are important legal documents. Difference between a Will & Estate Plan. Some people think that both are the same. However, this is not necessarily the case.
The difference between a Will & Estate Plan
Your Will
A Will is a legal document stating what you want to happen to your assets when you die. It is part (but not all) of your estate plan.
Your Will can cover things like;
- How you want your assets shared
- Who will look after your children if they’re still young
- Any trusts you want to set up
- How much money you’d like to give to charities
- Plans for your funeral
Updating your Will
It is important to update your Will as your situation changes for example, if you;
- Get married
- Divorce or separate
- Have children or grandchildren
- Lose your spouse or someone else who is named in your Will through death
Estate Plans
An estate plan records what you want to do with your assets after your death. It can include documents such as;
- Your Will
- A testamentary trust (as part of your Will)
- Superannuation binding nominations
- An advanced healthcare directive
It covers how you want to be cared for both medically and financially if you can no longer make your decisions.
The documents you choose will depend on your situation and what you’re comfortable to trust other with.
What is Powers of Attorney?
This allows someone to make financial decision for you. It usually for a specified time. If you become unable to make decisions yourself, a general power of attorney becomes invalid.
What is Enduring Power of Attorney?
An Enduring Power of Attorney (or EPA) allows someone to make financial and legal decisions for you. If you become unable to do so yourself, an enduring power of attorney will still be valid.
What is a Medical Power of Attorney?
This allows someone to make medical decisions for you if you ever become unable to do so yourself. It doesn’t allow them to make other kinds of decisions.
Do I need a last Will and Testament?
No matter your situation, creating a Last Will helps you to communicate your final wishes to your friends and family about how to distribute your property, pay off any debts, handle business or family needs, and more.
If you pass away without creating a valid Last Will, your estate is divided based on intestacy laws and your property may not be given to the beneficiaries you would have chosen.
How can Generation Private Wealth help?
We want to help ensure that your Will is an accurate reflection of how you’d like to deal with your most important assets and record your requests.
We play a crucial role in building awareness and educating our clients to ensure they protect their legacy and financial affairs.