Episode 31: What’s the Difference Between a Will and an Estate Plan?
Have your question answered on the Money Wisdom Question Series!
Thank you for joining us for Episode 31 of our Money Wisdom Question Series, where we answer common financial and retirement investment questions. Today’s question is, “What is the difference between a will and a full estate plan?”
What is a Will?
A will is simple. It tells where you want your possessions to go when you die. This includes anything that’s not covered by beneficiary designation (Life Insurance policies and retirement plans). For example – cars, houses, brokerage accounts, other investments, and maybe even land.
You may or may not have a will. Everybody should have a will. If you do not have one, the state you live in has written a will. They have laws and statutes that dictate where your money and possessions go when you die if you don’t have your own. So, I think it’s really important that everybody has a will prepared.
What is an Estate Plan?
An estate plan is much more comprehensive than that. I can set up trusts in my estate plan that allow me to leave money to my kids or grandkids, all while making sure certain rules are followed. With a trust, I can have control over the way that money is spent, even after I pass away. I don’t want my kids to have a BMW in the parking lot before the dirt is even on my grave!
You can also protect assets with an estate plan. If I end up going into a nursing home, I don’t want all of my money spent down to take care of me. I want some of it preserved for my kids and for my grandkids. A good estate plan will protect some of that savings and some of those assets.
In addition, I can set up an estate plan that gives clear instructions if I’m still alive, but can’t make financial decisions for myself or manage my affairs. This allows me to have certain stipulations in place and I can appoint somebody to manage those affairs for me. I can also say, “don’t keep me alive if I’m on a machine”. All of these things are part of a comprehensive estate plan.
Professional Estate Planning Help
In this day and age, I would suggest that you need a full estate plan and not just a will. Have a full estate plan created by a professional who does it all the time. Not just somebody who does real estate closings and tells you that they can do an estate plan. Find someone who really specializes in estate planning, whether it’s a fiduciary financial planner or an attorney who does it for a living. The reason behind this is because an estate plan is much more complicated than just having a will.
Thanks for joining me and I hope you found this information helpful!
P.S. If you enjoyed this topic and want to learn more, download our offer, “The Greatest Gift: Outline Your Wishes with an Estate Plan“.
P.P.S. Feel free to submit questions here for a chance to have them answered!
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Podcast Episode 411: What Happens to My Money After I Die?
Prefer to watch? Click here to watch and listen on YouTube. No one wants to think about life after they’re gone, but ignoring what happens to your money can leave your loved ones confused and v… -
What’s the Best Age to Start Taking RMDs?
Is it better to take your required minimum distribution (RMD) sooner rather than later? While the IRS determines when you must begin taking RMDs, you may benefit from taking them earlier. An RM… -
Should I Downsize My Home for Retirement?
Equity is on the minds of many pre-retirees and retirees today, more specifically: Should I downsize my home in retirement? And if so, when is the right time to do it? In this week’s Money Wisd… -
Key Components of Any Good Estate Plan
No matter your age or income level, everyone should consider basic estate planning. A well-crafted estate plan provides privacy and control over your assets, secures your legacy, and most importan… -
How Can You Protect Your Retirement Assets for Your Family?
When you’re focused on planning for retirement, it’s easy to overlook how you can protect your assets for both yourself and your family. While there’s no one-size-fits-all approach, your first ste… -
What Level of Risk Is Right for Your Retirement Plan?
In this week’s Money Wisdom Question Series, Ian Fergusson, RICP® addresses a fundamental concern for anyone approaching or in retirement: What level of risk is appropriate for my retirement plan?… -
What Estate Planning Steps Should I Take?
With retirement on the horizon, you may be wondering what steps you should be taking from an estate planning standpoint. At its core, there are three key estate planning considerations to keep in … -
How Can I Protect My Retirement Savings from Market Volatility?
We’ve been receiving a lot of questions lately about how to best protect your retirement savings against stock market volatility. It’s easy to let recent fluctuations in the market shake your conf… -
What Should I Watch Out for When Reviewing My Retirement Tax Return?
Now that tax season is over and your return is filed, you may be wondering what you need to review in preparation for next year, especially if you’re approaching retirement. In this week’s Mone… -
How Do Tariffs Affect the Stock Market?
If you’ve been tuned into the news lately, you’ve probably heard a lot about tariffs. The current administration’s latest economic push has introduced a wave of uncertainty in the market. But what…
