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
-
What Are My Options for Long-Term Care Coverage?
Today’s question is particularly fitting for Long-Term Care Awareness Month: what are my options for long-term care coverage? Heath Grossman, CFP® joins this week’s Money Wisdom Question Series to… -
My Financial Advisor Retired – Now What?
So much in life can take us by surprise, including today’s question: “my advisor has retired—what should I do now?” You might be asking yourself who you can rely on for support in this next chapte… -
How Do I Break Up with My Financial Advisor?
Today’s question is an interesting one, how do I break up with my financial advisor? Nicholas J. Colantuono, CFP® joins the Money Wisdom Question Series to share his thoughts about how important t… -
When Should I Meet With a Financial Advisor?
In today’s complex financial landscape, understanding when to meet with a financial advisor is crucial for achieving your long-term goals. We often hear this question, and the answer can vary base… -
At What Age Should You Meet with a Financial Advisor?
One question that frequently arises is: At what age should you start meeting with a financial advisor? The truth is, there’s really no age that’s too early. Meeting with a financial advisor isn’t … -
Should You Relocate or Sell Your Home in Retirement?
Today’s question in our Money Wisdom series is: Should I sell my home in retirement? This is a significant decision that retirees often face, and it can be approached from two primary angles: fina… -
If I Have A Will, Do I Need A Trust?
On this week’s Money Wisdom Question Series with Heath Grossman, CFP®, he tackles an important question: if you have a trust, do you also need a will? The short answer is yes. When you’ve estab… -
Countdown to Retirement: Are You Hitting Your Goals?
This week on the Money Wisdom Question Series, we’re focusing on the countdown to retirement and ensuring you’re on track to meet your goals as you approach this exciting new phase of life. Maj… -
What Non-Financial Goals Should I Accomplish in Retirement?
Today’s question goes into the non-financial retirement goals our clients aspire to achieve, such as pursuing hobbies, volunteering, and spending quality time with loved ones. Let’s dive deeper in… -
What are the Benefits of Estate Planning?
This week on “Retire Wiser,” Joel Johnson, CFP® discusses the often-overlooked topic of estate planning and its key benefits for your overall financial plan. Estate planning might not be at the…