There are many differences and similarities when it comes to creating a will and an estate plan. The basic principle and similarity behind both of these lies in safeguarding the life of a person’s loved ones so that they do not have to struggle financially in the future. It is important to know the difference between the two and which is best suited for each kind of purpose.
Though both are rather similar in their purpose, they differ greatly in their meaning and in their execution. For one, estate planning is a bit more broad and lies when a person makes a plan to device his or her estate to a third party after the person has died. It is important to note that not only a person’s material valuables enter the plan but also a person’s values, such has religion, education, work, etc. This is done if the person has children and has lined out what plans he or she had for the children’s upbringing.
A will is legal documentation as to what is to how the testator’s assets are to be administered and divided after his or her death. A will is seen as legally binding given the fact that it lists the testator’s “last will” before his or her death. Therefore, it must be free from external manipulation or influence of any kind and the will must represent what the testator wanted to do with his or her property.
In the end, both share the commonality that they ensure that family and loved ones are taken care of after the person has passed away. Everyone is entitled to make either one, depending on their wishes and that is why it is important to know the difference between the two.