Understanding How Wills and Estate Work

So, a lot of people, even the educated ones, confuse wills and estate. They think, after all, they both involve writing. What you don’t know is that a will is just one of the many documents included in an estate plan. A plan like this, for example, goes beyond how your property or assets are to be shared among your beneficiaries. It’s also like a guide to how they take care of you medically peradventure you become incapacitated or die. 

Additionally, it also covers specific events such as if you have family members with special needs, what should be done to them, or you have children who are still minors, or even your spouse. The plan explains what kind of financial support should be given eventually when you’re dead and gone. That being said, let’s explain wills and estate in Campbelltown individually. 

What is a will? 

Also known as a testament, it is a legal document that captures in detail how your assets are to be distributed, funeral arrangements, the guardianship of your kids, and many more. Furthermore, it contains info on when your assets or property are to be shared. 

Generally speaking, while you’re called the testator, those who benefit from your testament are called beneficiaries. 

What is an estate plan? 

The overall process of how your property is to be run or controlled if you’re dead or incapacitated or unable to handle your assets for whatsoever reason is called an estate plan. Furthermore, it captures even minute details such as who you want to inherit a property, and when they should receive it. Your estate is made up of your car, home, investments, insurance, furniture, etc; just think of it as anything you own. 

People think it’s just for retirees. It’s not. For example, we can’t tell when we die, but we can draft an estate plan if, eventually, we die. Wills and estate may not be totally like apples and oranges, but fundamental differences exist between them. 

Differences between wills and estate

A will is a plan after you die. This provides direction to where and how your property or assets are to be distributed. While on the other hand, an estate plan is broader and can be enforced even while you’re alive, i.e., if you are incapacitated or something similar. A testament can also be a part of your estate plan. 

While a testament can be within the scope of the law or just a legal document, estate planning can go beyond the scope of your legal documents. It covers several plans not captured in a testament. To put it shortly, it contains several legal documents. 

Furthermore, estate planning is a more complicated process than planning. Not only are many documents made, you need to keep track of each of them. Plus, when it comes to the issue of privacy between wills and estate, testaments are made public after you die. But, many documents in your plan may not make their way to the public after you die. They can be kept a secret for as long as possible. Now you see that wills and estate are not so different, yet they are alike. Planning to make your wills and estate? You can find more resources or help online!